46% of Americans would struggle to cover an unexpected $400 expense

S2007S · Dec 14, 2016

46%%% would struggle to cover a $400 expense???? I find it hard to believe since I see most people driving brand new cars, eating out at least 2-3 times a week, going on vacations and carrying $800 smartphones, but I guess it is what it is!!

An interesting article that breaks down county by county on how many Americans are struggling.

This is the best research we've seen on how many Americans are really struggling financially, and it is heartbreaking

Matt Turner
2h
4,720

http://www.businessinsider.com/just...ber-of-americans-arent-making-a-living-wage-1

motif · Dec 14, 2016

The poorest people in the US own smart phones, computers, TV, video game consoles, cars and ebt cards. What could possibly go wrong?

FCXoptions · Dec 14, 2016

S2007S said:
I find it hard to believe

Most people in my group at work make decent money, probably all individually pulling in a little more than the average US household income, and I'd say at least half would probably have an issue affording an unexpected $400 just based on comments I regularly hear. Most could probably afford quite a lot if they spent less on alcohol though...and most are twice my age LOL

Xela · Dec 14, 2016

S2007S said:
46% would struggle to cover a $400 expense????

That's not what you said in your title.

There, you (rightly, I think) specified "an unexpected expense".

S2007S said:
I find it hard to believe since I see most people driving brand new cars, eating out at least 2-3 times a week, going on vacations and carrying $800 smartphones

Those aren't unexpected expenses, though, are they? Perhaps that's the difference??

I do take your point, though.

Mtrader · Dec 14, 2016

The American nightmare instead of the American Dream.

zdreg · Dec 15, 2016

motif said:
The poorest people in the US own smart phones, computers, TV, video game consoles, cars and ebt cards. What could possibly go wrong?

how else do you keep the hoi polloi under control. that way + a prison system that is worse than the gulag.
"What could possibly go wrong?" nothing but bankruptcy both moral and financial.

Michael J. Fletcher · Dec 16, 2016

That's really crazy. But I think it's true. The financial literacy is so low these days. A lot of people don't have saving at all, and it's sad.

ironchef · Dec 16, 2016

Our economic and political systems are gear to consumption and not investment. If too many of us save and not borrow and spend, the economy would tank and the country would be in a deep recession with social unrests.

Also, when the system has safety nets with welfare and medicaid , why do I need saving and why do I even have to work?

Of course it is oversimplification but I sometimes wonder.

harami · Dec 16, 2016

S2007S said:
46%%% would struggle to cover a $400 expense???? I find it hard to believe

I don't. I had to loan my sister $600 today because her biweekly paycheck has been delayed by a few days, and she has no money in the bank to pay bills & buy groceries until then.

However, she can afford several pair of Beats headphones, new iPhone with unlimited data plan, several pairs of Nike LeBron shoes for her kid, tattoos, 3 new TVs, etc...

Mtrader · Dec 17, 2016

As long as salary is so small that people have to make choices what to buy, they buy more than they can afford. So for most people this problem exists. Only when people have enough salary to save some money, the problem is solved.
People always want more than they can afford, it is genetically.
They always want bigger car or house than needed, they always cross their financial limits.

Typical example is how Americans took higher loans when the value of their house theoretically went up a few years ago. When intrest rates started to raise again, and/or economy was in trouble, the US had the biggest number of forclosures by banks of houses that could not be paid off anymore. On the worst moment almost 4 million a year were under foreclosure. In Europe this is unthinkable of. The US lives on plastic money. 60% of all creditcards in the world are held by Americans although the US represents only 4.36% of the world population. On most cards there is a monthly pay off (average $609 a month) so they can even not pay back everything end of each month. In Europe people pay back end of each month the total debt.