47% of Americans could not find the money to pay for a $400 emergency

[jimmy olsen]

Jesus Christ!

No wonder so many people are voting for Trump and Sanders.

Very log article on the economic decline of the bottom 60% of America, which began as far back as the 80s.
http://www.theatlantic.com/magazine/archive/2016/05/my-secret-shame/476415/

[CountDeMoney]

Hey, looks like the forecast is calling for mostly tough shit with an 80% chance of who gives a fuck.

[Grey Fox]

We have no money, the top takes it all.

[Grinning_Colossus]

Romney cited the same statistic in 2012.

[alfred russel]

Hey, looks like the forecast is calling for mostly tough shit with an 80% chance of who gives a fuck.

I bet a bunch of them would come up with $400 if there was a massively discounted bigscreen plasma TV selling for $400.

[CountDeMoney]

I bet a bunch of them would come up with $400 if there was a massively discounted bigscreen plasma TV selling for $400.

The article is about the unexpected costs related to unforeseen emergencies.  Everybody knows when Black Friday is.

[Brazen]

You can put a TV on a credit card. Your average neighbourhood plumber called out in the middle of the night would not be so accommodating.

Interestingly UK debt adviser Martin Lewis* suggests paying debt off before anything else, whereas the US one Dave Ramsey suggests saving $1,000 first.

* He says "Those with debts AND savings are seriously overspending but the solution is simple. Pay the debts off before you save and maybe even your mortgage. Forget the old 'must have an emergency savings fund' logic as getting rid of debts beats that too." I can't help thinking that that might lead to going further in debt when said emergency hits.

[Valmy]

The $1,000 emergency fund has kept the pressure off our credit cards more than once. I know Ramsey gets flak for his investment advice but his way of thinking is pretty important for establishing yourself economically in this country. Most of my financial success happened after I took a class based on his ideas.

[MadBurgerMaker]

I can't help thinking that that might lead to going further in debt when said emergency hits.

Yeah, having 1-2k as "just in case" savings keeps that same one or two K off the credit cards you've been working so hard to pay off. 

[crazy canuck]

Its a bit of an odd article.  Its spends a great deal of time blaming Americans for not saving enough because of reliance on credit.  The article blames easy access to credit, lack of interest rate regulation, and people being generally stupid.  Income stagnation is mentioned but the article doesn't do a very good job making the link between the fact that people need to rely on credit because their incomes have not kept up with increases in expenses.

The drop in net worth, in just the last decade or so, is staggering.

[Eddie Teach]

Really depends if keeping the money in savings can psychologically push you into spending less. Otherwise, you're better off paying down the card and not adding as much interest.

[crazy canuck]

Really depends if keeping the money in savings can psychologically push you into spending less. Otherwise, you're better off paying down the card and not adding as much interest.

I think that is the point.  When people start looking at credit as the equivalent of available savings the theory that one should pay down credit first results in never accumulating savings and always relying on credit.

[Valmy]

Really depends if keeping the money in savings can psychologically push you into spending less. Otherwise, you're better off paying down the card and not adding as much interest.

The psychological tool to push you into spending less is using cash for everything. Studies show you spend 18-20% less when you use dead Presidents...and Hamilton...to pay for stuff.

[Razgovory]

Neat!  I always have about 100 bucks stashed away in case of emergencies.

EDIT:  That was suppose to read "900 bucks"

[Fate]

Another problem is that 75% of Americans are impatient and inappropriately go to the ER for problems that are less expensively and more effectively handled as an outpatient with a primary care doctor or an urgent care center.

Go to the ER when you're about to die. Everything else is better treated elsewhere. ERs are the most expensive kind of medicine there is and is not necessary in the vast majority of cases.