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Started By
Message
Revisiting the almost half of the US who can't raise $400
Posted on 8/23/17 at 9:06 am
Posted on 8/23/17 at 9:06 am
LINK
so 19% of people making $100k don't have a free $400? that's a more shocking stat than 46% not having it (with our huge underclass)
also, there is a racial differentiation
that's pretty interesting
but seriously how can somebody not have $400 for an emergency? i consider myself WAY behind where i'm supposed to be (in terms of retirement, owning a home, etc) and i have over $30k in savings (While spending most of my excess monthly money concentrating on getting my student loans paid off (over half paid off in less than 10 years). i also have a 5-figure reserve for my company (since i'm a pass through tax entity that's technically savings but that's stretching it)
now i am single with no kids, but i've only earned 6-figures once since graduating from law school in 2008 and i have earned much closer to a teacher than 6-figures for most of my career
what do these people do to get in such dire straights? i mean at each income level above the underclass and working poor.
quote:
About 46 percent of Americans said they did not have enough money to cover a $400 emergency expense. Instead, they would have to put it on a credit card and pay it off over time, borrow from friends or family, or simply not cover it at all.
Not surprisingly, those with higher incomes were better equipped to handle an emergency. About 81 percent of people making more than $100,000 a year reported they would be able to cover the bill, compared with 34 percent of those earning less than $40,000.
so 19% of people making $100k don't have a free $400? that's a more shocking stat than 46% not having it (with our huge underclass)
also, there is a racial differentiation
that's pretty interesting
but seriously how can somebody not have $400 for an emergency? i consider myself WAY behind where i'm supposed to be (in terms of retirement, owning a home, etc) and i have over $30k in savings (While spending most of my excess monthly money concentrating on getting my student loans paid off (over half paid off in less than 10 years). i also have a 5-figure reserve for my company (since i'm a pass through tax entity that's technically savings but that's stretching it)
now i am single with no kids, but i've only earned 6-figures once since graduating from law school in 2008 and i have earned much closer to a teacher than 6-figures for most of my career
what do these people do to get in such dire straights? i mean at each income level above the underclass and working poor.
This post was edited on 8/23/17 at 9:29 am
36
Posted on 8/23/17 at 9:08 am to SlowFlowPro
There's no way that's accurate. Maybe they polled the city of Baltimore or something like that but otherwise I can't imagine that's real.
Posted on 8/23/17 at 9:10 am to El Segundo Guy
quote:
There's no way that's accurate.
You'd be surprised how many people are fiscally irresponsible or live way, way outside their means.
I completely believe those numbers.
Posted on 8/23/17 at 9:12 am to El Segundo Guy
it's real
the writer who first wrote about it realized he was in that demo
LINK
from the tweet responses
well i guess that's one answer to my question
the writer who first wrote about it realized he was in that demo
LINK
quote:
If there are two things Americans are good at, it’s mishandling our finances, and using Twitter to judge those who are in worse shape than us.
Thus we have the perfect Atlantic cover story this week—a refreshingly honest and desparingly relatable personal essay by writer Neal Gabler about his many financial mistakes, as well as a look at why even high-earning families in the U.S. are still living paycheck to paycheck. Gabler told me the piece “wasn’t an easy one to write.”
quote:
I plead guilty. I am a financial illiterate, or worse—an ignoramus. I don’t offer that as an excuse, just as a fact. I made choices without thinking through the financial implications—in part because I didn’t know about those implications, and in part because I assumed I would always overcome any adversity, should it arrive. I chose to become a writer, which is a financially perilous profession, rather than do something more lucrative. I chose to live in New York rather than in a place with a lower cost of living. I chose to have two children. I chose to write long books that required years of work, even though my advances would be stretched to the breaking point and, it turned out, beyond. We all make those sorts of choices, and they obviously affect, even determine, our bottom line. But, without getting too metaphysical about it, these are the choices that define who we are. We don’t make them with our financial well-being in mind, though maybe we should. We make them with our lives in mind. The alternative is to be another person.
from the tweet responses
quote:
"We've no retirement savings, because we emptied a small 401(k) to pay for our daughter’s wedding"
well i guess that's one answer to my question
Posted on 8/23/17 at 9:13 am to Centinel
quote:
You'd be surprised how many people are fiscally irresponsible or live way, way outside their means.
Move to lake Charles it's everywhere I turn
Posted on 8/23/17 at 9:13 am to SlowFlowPro
quote:
what do these people do to get in such dire straights? i mean at each income level above the underclass and working poor.
It may have to still depend on where they live.
Posted on 8/23/17 at 9:16 am to SlowFlowPro
Yeah I wouldn't be able to sleep at night without a savings cushion. We have various accounts for retirement savings (have a Roth, traditional IRA, and a 401k each lol) with about 40k, and short term "savings" of about 25k in bond funds accessible within about 24/48 hours, plus about 2k cash for quick emergencies. That's not counting our 22% equity in our house. All seperate accounts.
This is from simply not having student loans and making between 50k-105k each year for about 8 years. We could have saved a lot more if we'd had more discipline.
This is from simply not having student loans and making between 50k-105k each year for about 8 years. We could have saved a lot more if we'd had more discipline.
Posted on 8/23/17 at 9:17 am to Centinel
quote:
There's no way that's accurate.
quote:
You'd be surprised how many people are fiscally irresponsible or live way, way outside their means.
I believe it because I have seen Congress!
Posted on 8/23/17 at 9:17 am to SlowFlowPro
quote:
so 19% of people making $100k don't have a free $400? that's a more shocking stat than 46% not having it (with our huge underclass)
I'm suspicious of how a poll can even reach this conclusion.
It looks like they are just asking how you'd pay it.
I mean, I could conceivably say putting it on a credit card for any number of reasons other than the fact that I couldn't quickly get my hands on $400 if I wanted to.
Posted on 8/23/17 at 9:17 am to SlowFlowPro
Wife and I make over $100k and there have been a couple of times in the past few years where an unexpected $400 expense would have stretched us. Not to the point of stressing over not having it, but more just depleting our emergency fund. It's usually the 2nd, 3rd, or 4th unexpected expense in a short time that causes it. Last year at the beginning of the summer, both a/c units had to be fixed. Fan motor in one, new coils in the other, both unexpected. $2500. Both kids decided to do swim team. $250 registration fee. Wife's car needed new tires. $800. All hit in the same month. I mean, we were fine, but it took the rest of the summer to get our emergency fund back up.
Posted on 8/23/17 at 9:18 am to SlowFlowPro
There is still a significant portion of the population that lives beyond its means.
The Mrs and I have a household income of over $100k but we make sure to try to be prepared for the occasional emergency (although the flood pretty much tapped us out for a while).
Combine this desire to keep up a perception of wealth with a credit industry that rewards spending on credit and you get a perfect breeding ground for debt.
The Mrs and I have a household income of over $100k but we make sure to try to be prepared for the occasional emergency (although the flood pretty much tapped us out for a while).
Combine this desire to keep up a perception of wealth with a credit industry that rewards spending on credit and you get a perfect breeding ground for debt.
Posted on 8/23/17 at 9:21 am to SlowFlowPro
In my own experience, I find that child support and divorce is a huge factor. I base this off of my contractors that are leased with me and borrow money from me. The ones that consistently borrow money are the ones that are divorced and/or with open child support cases. This transcends race and is pretty consistent in multiple regions and over multiple years.
Just my observation though. No studies to back it up.
Just my observation though. No studies to back it up.
Posted on 8/23/17 at 9:23 am to Y.A. Tittle
quote:
I mean, I could conceivably say putting it on a credit card for any number of reasons other than the fact that I couldn't quickly get my hands on $400 if I wanted to.
i was kind of curious about that b/c i'd pay with my CC, too then pay it off)
but they've done follow ups to this. plus all the other "savings" studies that have been done
LINK
quote:
Approximately 26% of adults have no savings set aside for emergencies, while another 36% have yet to start socking away money for retirement.
quote:
Approximately 7.7% of American households function without a bank account. That's close to 10 million households altogether.
that's an underclass issue, but goddamn
quote:
Around 75% of Latino and African American households have less than $10,000 saved for retirement, and nearly two-thirds of minority households don't have anything set aside for the future.
also, a funny reply to somebody who brought up Baltimore earlier:
quote:
Some cities make saving easier than others, thanks to higher wages and a lower cost of living. Through 2014, Baltimore made the top of the list, with a median household income of $73,816 and median expenses of $49,566.
Posted on 8/23/17 at 9:23 am to El Segundo Guy
You have no idea how bad it is.
I have a colleague that makes a good income, his wife works as well. An uninsured motorist hit their vehicle and he is having to drive it wrecked because he can't afford the $500 deductible right now.
My guess is their combined income is around $100k.
I have a colleague that makes a good income, his wife works as well. An uninsured motorist hit their vehicle and he is having to drive it wrecked because he can't afford the $500 deductible right now.
My guess is their combined income is around $100k.
Posted on 8/23/17 at 9:24 am to cokebottleag
quote:
Yeah I wouldn't be able to sleep at night without a savings cushion. We have various accounts for retirement savings (have a Roth, traditional IRA, and a 401k each lol) with about 40k, and short term "savings" of about 25k in bond funds accessible within about 24/48 hours, plus about 2k cash for quick emergencies. That's not counting our 22% equity in our house. All seperate accounts.
Fiance and I are the same way. We have our emergency fund, our OH shite emergency fund, then our RAGNAROK! emergency fund
That's on top of the usual 401ks and such.
Posted on 8/23/17 at 9:24 am to SlowFlowPro
quote:
what do these people do to get in such dire straights?
1) It's "dire straits" ... and an Attorney should know that.
2) There are people in this world ... that no matter how much they make ... they will blow it all and constantly struggle. See it all the time.
Posted on 8/23/17 at 9:26 am to 9th life
quote:
I find that child support and divorce is a huge factor.
that's actually a good point, and i feel stupid for not thinking about it given where i live. tons of baws making 85-140k here who have 3+ kids on child support (and of course with the F250, etc). i've seen it through work
Posted on 8/23/17 at 9:28 am to navy
quote:
1) It's "dire straits" ... and an Attorney should know that.
quote:
2) There are people in this world ... that no matter how much they make ... they will blow it all and constantly struggle. See it all the time.
yeah the 10-20% of our population that is underclass? sure
but 20% of people making over 100k are living that life, too
Posted on 8/23/17 at 9:30 am to SlowFlowPro
quote:
so 19% of people making $100k don't have a free $400?
Those are folks in their late 30s to early 50s who have a $400k house and 2 nice cars under 4 years old.
Just for the record...
Posted on 8/23/17 at 9:31 am to SlowFlowPro
$400 ?
I could easily get triple that.
Balla.
I could easily get triple that.
Balla.
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