You would be surprised. (From 2004 but same principles apply). https://www.scientificamerican.com/article/howcan-a-poll-of-only-100/ Bigger issue is how diverse your survey was. If you survey about Trump in Boston, MA it might be a bit skewed.
You are correct that sample size would be at accurate at the plus/minus. However, the sample was limited to English and Spanish responses only skewing the results. Look under the methodology. https://www.bankrate.com/banking/savings/emergency-savings-report/#tips
I'm sure they (self included) could easily afford it if the PHU-KING government would stop taking our money to pass tax credits for the low incomers and illegals. -lg
I can get a 31 ounce can of Yuban on sale for less than ten bucks. That 31 ounce can makes my two daily cups of coffee for +/- 38 days (0.8 oz. per day, I just measured). That's 26 cents per day.
I've never tasted any Starbucks or any other espresso coffee (candy). I have no interest. I like my black coffee, and Yuban just happens to be my favorite off the shelf brand. Besides, unlike the $6 to $10 fancy coffees, my Yuban has no calories, which I certainly don't need more of anyway.
Full Disclosure Statement- It's necessary that I reserve my discretionary caloric intake to the judicious intake of Kentucky Sour Mash. A man has to have his priorities, even if they do cost more than 26 cents per day.
I have enough money to cover a thousand dollar emergency. That doesn't mean that I can afford to spend it on that emergency. I have a setpoint in my savings account that I feel comfortable at. When it drops below that amount, I get nervous and work to build it back up. In the past 7 years or so, I had to replace my furnace/AC unit. A new roof, plus I replaced my deck last summer for over $1500. That came to over 12 grand, which I fortunately had the money to cover. But I had to lower my comfort level for my savings account, until I can build it back to where it was. No doubt it will take at least 5 more years to get there. I don't count car repairs, which average 5-800 dollars a year. You just have to have some sort of emergency fund, no matter how small. Credit cards are a killer, and with the way the economy is, you should not have one.
Very few real life emergencies would be covered by $1000. Need to start thinking $10,000 emergency funds. Hell, a decent set of tires runs at least $1500 these days, and that's a predictable event. A/C repairs (a true emergency in the south) can run from $1000 to $10,000 real easy. Any serious car repairs start at $2500 and go up.
This. Fixing a vehicle is $1700 now here, fortunately I'm not the one paying for it and it's not my vehicle, but still. One emergency would destroy everything I saved up over the last 5-10 years; I'll just endure the emergency rather than lose the money.
Article is written for a "doom and gloom" picture. The question was how would you pay for an unexpected expense with 6 choices of payment. Bankrate feels any choice other than "savings" mean you don't have any savings. https://www.bankrate.com/banking/savings/emergency-savings-report/#pay-for-sudden
I could write a check right now for $4K, and that's right after I paid all the monthly bills and the credit card. I could spend 15 minutes on-line transferring from savings and write a check for over $17K. (I should move most of those savings into something that pays a better interest rate.) But vendors trust Visa more than they trust my checks, so I'd charge it, then write the check to pay off the credit card before there are any interest charges - the same as I do every month. However, it looks like the people analyzing this survey would think that because I charged $1,000, it would derail me financially.
In reality, if I used _all_ my savings and checking for a major repair or to replace my car, I might be scrambling to pay the property taxes and house and car insurance next June. Except I set the annual mandatory IRA withdrawal to come in time to cover these. If I have to go over about $25K, I'd be dipping into a longer-term investment like the tax free municipals, 401-K, or IRAs - things that could hurt in 20 years, if I live past 90, but probably would only reduce what I leave to my children.
For those pressed and a few bucks can make a difference, consider selling your plasma short term. I have done it to get me by. I was making 60 dollars a go, could do it 2x a week. You need to be of good health, no drugs (other conditions will apply), your locality may vary. Hey, if you need the money, you need the money. Find some way to hustle a side gig if you can. Cut expenses ruthlessly. There is a world of difference between a want and a need. Figure it out.
I own a veterinary clinic and less than half of my clients will be able to pay an unexpected bill for illness or accidentally injury to their pets. They do seem to be able to pay for tattoos, pajamas, purple hair and weed, but not for a vaccine that would have prevented the disease. This has only gotten worse over the last 40 years. Bad life choices should hurt more, drug and alcohol testing of all recipients of state aid would be a good place to start.
Or of responding to the "Help Wanted" signs in the windows of the restaurants and stores they visit. I can think of several that have been up for three years, ever since they worked out how to stay open for business during COVID.
Sample size of 1036 people isn't large enough to draw conclusions about the entire population of the US.
ReplyDeleteYou would be surprised.
Delete(From 2004 but same principles apply).
https://www.scientificamerican.com/article/howcan-a-poll-of-only-100/
Bigger issue is how diverse your survey was. If you survey about Trump in Boston, MA it might be a bit skewed.
You are correct that sample size would be at accurate at the plus/minus.
DeleteHowever, the sample was limited to English and Spanish responses only skewing the results. Look under the methodology.
https://www.bankrate.com/banking/savings/emergency-savings-report/#tips
I bet you that 25% of the people who can't afford it is because the government takes that money to give it to an other 25%, buying votes.
ReplyDeleteI'm sure they (self included) could easily afford it if the PHU-KING government would stop taking our money to pass tax credits for the low incomers and illegals.
ReplyDelete-lg
But I bet they still wait in line for their $10 starbucks' coffee each morning.
ReplyDeleteDon't get me started. Make my own every day and it starts with water from my own 400 foot deep well. I can make coffee all week for $10.
DeleteI can get a 31 ounce can of Yuban on sale for less than ten bucks. That 31 ounce can makes my two daily cups of coffee for +/- 38 days (0.8 oz. per day, I just measured). That's 26 cents per day.
DeleteI've never tasted any Starbucks or any other espresso coffee (candy). I have no interest. I like my black coffee, and Yuban just happens to be my favorite off the shelf brand. Besides, unlike the $6 to $10 fancy coffees, my Yuban has no calories, which I certainly don't need more of anyway.
Full Disclosure Statement-
DeleteIt's necessary that I reserve my discretionary caloric intake to the judicious intake of Kentucky Sour Mash.
A man has to have his priorities, even if they do cost more than 26 cents per day.
I have enough money to cover a thousand dollar emergency. That doesn't mean that I can afford to spend it on that emergency.
ReplyDeleteI have a setpoint in my savings account that I feel comfortable at. When it drops below that amount, I get nervous and work to build it back up.
In the past 7 years or so, I had to replace my furnace/AC unit. A new roof, plus I replaced my deck last summer for over $1500. That came to over 12 grand, which I fortunately had the money to cover. But I had to lower my comfort level for my savings account, until I can build it back to where it was.
No doubt it will take at least 5 more years to get there. I don't count car repairs, which average 5-800 dollars a year.
You just have to have some sort of emergency fund, no matter how small. Credit cards are a killer, and with the way the economy is, you should not have one.
But, it's no problem when they can shell out $5,000 for a ticket to a Taylor Swift concert.
ReplyDeleteVery few real life emergencies would be covered by $1000. Need to start thinking $10,000 emergency funds. Hell, a decent set of tires runs at least $1500 these days, and that's a predictable event. A/C repairs (a true emergency in the south) can run from $1000 to $10,000 real easy. Any serious car repairs start at $2500 and go up.
ReplyDeleteThis. Fixing a vehicle is $1700 now here, fortunately I'm not the one paying for it and it's not my vehicle, but still. One emergency would destroy everything I saved up over the last 5-10 years; I'll just endure the emergency rather than lose the money.
Delete- Arc
Article is written for a "doom and gloom" picture. The question was how would you pay for an unexpected expense with 6 choices of payment. Bankrate feels any choice other than "savings" mean you don't have any savings.
ReplyDeletehttps://www.bankrate.com/banking/savings/emergency-savings-report/#pay-for-sudden
I could write a check right now for $4K, and that's right after I paid all the monthly bills and the credit card. I could spend 15 minutes on-line transferring from savings and write a check for over $17K. (I should move most of those savings into something that pays a better interest rate.) But vendors trust Visa more than they trust my checks, so I'd charge it, then write the check to pay off the credit card before there are any interest charges - the same as I do every month. However, it looks like the people analyzing this survey would think that because I charged $1,000, it would derail me financially.
DeleteIn reality, if I used _all_ my savings and checking for a major repair or to replace my car, I might be scrambling to pay the property taxes and house and car insurance next June. Except I set the annual mandatory IRA withdrawal to come in time to cover these. If I have to go over about $25K, I'd be dipping into a longer-term investment like the tax free municipals, 401-K, or IRAs - things that could hurt in 20 years, if I live past 90, but probably would only reduce what I leave to my children.
AC repairs are not a true emergency. Whites lives in the South for hundreds of years before AC came along.
ReplyDeleteBut muh die-ah-beet-us...
DeleteFor those pressed and a few bucks can make a difference, consider selling your plasma short term. I have done it to get me by. I was making 60 dollars a go, could do it 2x a week. You need to be of good health, no drugs (other conditions will apply), your locality may vary. Hey, if you need the money, you need the money. Find some way to hustle a side gig if you can. Cut expenses ruthlessly. There is a world of difference between a want and a need. Figure it out.
ReplyDeleteI own a veterinary clinic and less than half of my clients will be able to pay an unexpected bill for illness or accidentally injury to their pets. They do seem to be able to pay for tattoos, pajamas, purple hair and weed, but not for a vaccine that would have prevented the disease. This has only gotten worse over the last 40 years. Bad life choices should hurt more, drug and alcohol testing of all recipients of state aid would be a good place to start.
ReplyDeleteI bet not a one of the 20 somethings ever thought of working overtime .
ReplyDeleteOr of responding to the "Help Wanted" signs in the windows of the restaurants and stores they visit. I can think of several that have been up for three years, ever since they worked out how to stay open for business during COVID.
Delete