When faced with an unexpected $1,000 expense, more than one-third of Americans would borrow the money, according to a new Bankrate survey. That may include tapping their credit cards, seeking money from friends or family or taking out a personal loan.
Most would not turn to cash savings because they don’t have it, the personal finance website found.
Fewer than half of Americans, 44%, say they can afford to pay a $1,000 emergency expense from their savings, according to Bankrate’s survey of more than 1,000 respondents conducted in December.
That is up from 43% in 2023, yet level when compared to 2022.
“We’re just not wired to save,” said Brad Klontz, a certified financial planner and expert in financial psychology and behavioral finance. Our brains are instead programmed to focus on our immediate needs.
The factory i work at has had three 45¢ raises since 2008. Sure the $20/hour was great during the recession, but it’s hardly enough to live on today, and that’s over double my state’s minimum wage.
I remember reading a study from about 10-20 years ago that found the average income for Americans to actually get by with enough to make it to retirement and have adequate healthcare was $75,000 a year. It’s probably much higher now too: The increasing levels of disparity are just fucking disgusting.