82% Of Americans Say They Couldn't Afford $500 Emergency Thanks To COVID-19

[Handyman 5,682]

On 12/13/2020 at 3:59 PM, RUTGERS95 said:

don't care and no sympathy to be honest.  I'll bet each one has a $500-700 lease in their driveway or $250 cell phone service, or a bunch of other non-essential bs spending patterns that show poor judgement

I have minor sympathy, because their parents and the school system didn't teach them how to manage their affairs worth a damn. I'd bet of the 82%, 90% of them wouldn't have an extra $500 even without the covid. 

[Sniper 6,372]

13 minutes ago, Handyman said:

I have minor sympathy, because their parents and the school system didn't teach them how to manage their affairs worth a damn.

The sad thing, their parents are in the same condition. The level of savings that the baby boomers have is frightful. If you watch your parents live paycheck to paycheck, guess what you do too?

[Sniper 6,372]

I wonder how many of these people below have $500 saved up for an emergency?

According to a recent survey by the U.S. Census Bureau, of the estimated 17 million adults who are not current on their rent or mortgage payments, a whopping 33% of them could be facing eviction or foreclosure in the “next two months”.

To get a closer look, here are the top 10 metro areas with the highest percentages of people who will potentially be facing eviction or foreclosure:

Look at #8 in that list.

On the other end of the spectrum, there are states that appear to have less need for concern, as the percentage of people likely to experience foreclosure or eviction in these places stands between 15% and 20%. However, this level of relative home security is the case for only Delaware, Vermont, Maryland, and Utah.

Everyone else is floating in a proverbial gray area, between a majority who may still be in their same home after Christmas, and those who may need to find a new place in the months following the holidays.

[1LtCAP 4,262]

i think i've mentioned this before....way back when i used to run a shop for someone else, the most common thing i saw was people opening their wallet with at LEAST 3 or 4 credit(poss. debit) cards. no cash. they'd hand me one, and if it declined, then they'd hand me another one. this was back in the late 90's.

 

 over the decades, most people have fallen prey to advertising. they buy shit they don't need, and more than likely really can't afford. they may have the income to support the purchase of a 150k house......but they still go out and buy a 250k+ house. then 'cause their neighbors are all driving lexus, mercedes, owdies, they feel they need to do the same. after all, can't be seen in the neighborhood in a lowly toyota, now can they? then they go buy their kids those 200 buck sneakers and100 buck jackets 'cause the rest of the kids in the school system have them. can't have their kids wearing plain old 40 buck sneakers, can they?

 then of course there's the cell phone bills( nowadays more a replacement for a landline, rather than an addidtion), 600-1000 buck cell phone/trackers, stupidly expensive cable tv services etc........of course they don't save money.

 

 me personally, although i have a mortgage on it, my home is a late 1800's/early 1900's built shithole built by drunken monkeys snorting crack with no clue how to use a level, square or tape measure. i could afford to buy newer/nicer, but why? i drive a 18 year old suv, and could probably buy a brand new one....but why?

[CMJeepster 2,777]

In general, people live beyond their means these days.

[1LtCAP 4,262]

1 minute ago, CMJeepster said:

In general, people live beyond their means these days.

short version of what i spent 3 paragraphs saying, lolol

 

 but it's not just "these days". it's been going on for at least 3 decades.

[CMJeepster 2,777]

Just now, 1LtCAP said:

short version of what i spent 3 paragraphs saying, lolol

 

 but it's not just "these days". it's been going on for at least 3 decades.

Agreed.  I was raised to not spend what you don't have beyond a mortgage and car loans.

[10X 3,296]

22 minutes ago, CMJeepster said:

Agreed.  I was raised to not spend what you don't have beyond a mortgage and car loans.

Yep.  This is so important for achieving financial stability.   Avoid debt to the maximum extent possible!

I've always worked to finance less and less of each car I've purchased over the years; I would keep the old one on the road until I was sure I could pay for a bigger fraction of the new one in cash.  Finally, on my 9th car since high school (and not many years before retirement) I finally got to the point where I could buy my last new car for cash.  A milestone, decades in the making!

Too many people go in the opposite direction; each new car has a bigger loan, or a longer repayment period, or they shift to leasing rather than buying, just so they can have newer, bigger, fancier...

[RUTGERS95 890]

cars are the killer really, many pay a mortgage like payment for a car and they lease it.  Talk about sheer stupidity!  I know people leasing a car for 700/month after putting money down.  wtf is wrong with people

[RUTGERS95 890]

also, anything you put on a cc, you should be able to pay with next paycheck is how I look at it.  At the very least, within 3 mos but we live with the 'zero cc debt at end of month' routine

[CMJeepster 2,777]

5 minutes ago, RUTGERS95 said:

also, anything you put on a cc, you should be able to pay with next paycheck is how I look at it.  At the very least, within 3 mos but we live with the 'zero cc debt at end of month' routine

A former financial advisor of mine used to tell us to only have a credit card for emergencies and us debit / cash for everything else to keep you from living beyond your means.  We do that for the most part.

[RUTGERS95 890]

1 minute ago, CMJeepster said:

A former financial advisor of mine used to tell us to only have a credit card for emergencies and us debit / cash for everything else to keep you from living beyond your means.  We do that for the most part.

i use cc for everything and then pay off.  I don't like using anything tied to my bank acct in some locations.  What he said however, is valid and spot on.  Everyone should learn this.  I try and teach my kids this now

[Displaced Texan 11,731]

10 minutes ago, RUTGERS95 said:

also, anything you put on a cc, you should be able to pay with next paycheck is how I look at it.  At the very least, within 3 mos but we live with the 'zero cc debt at end of month' routine

This is how we were taught by our parents. 
 

I use CC’s that offer me rewards, such as air miles. I pay them off at the end of each month. 
 

Zero interest. And air miles as an added bonus. Something I can use, might as well get the benefit out of them. 

[CMJeepster 2,777]

3 minutes ago, RUTGERS95 said:

i use cc for everything and then pay off.  I don't like using anything tied to my bank acct in some locations.  What he said however, is valid and spot on.  Everyone should learn this.  I try and teach my kids this now

It really boils down to living within your means and knowing he value of a dollar.  Self control and thinking about purchases isn't something that I see much of these days.

[RUTGERS95 890]

7 minutes ago, CMJeepster said:

It really boils down to living within your means and knowing he value of a dollar.  Self control and thinking about purchases isn't something that I see much of these days.

in all fairness, it's a consumer economy and people are inundated with it.  the mind is conditioned of sorts

[CMJeepster 2,777]

1 minute ago, RUTGERS95 said:

in all fairness, it's a consumer economy and people are inundated with it.  the mind is conditioned of sorts

Similar to the obesity rate.  More choices of shit to shove into your mouth, more fat people.  Self control is where it's at!

[1LtCAP 4,262]

1 hour ago, RUTGERS95 said:

cars are the killer really, many pay a mortgage like payment for a car and they lease it.  Talk about sheer stupidity!  I know people leasing a car for 700/month after putting money down.  wtf is wrong with people

I HATE the lease thing....'cept for those people who REALLY want a car like an owdi or mercedes. most people that own them can't truly afford them due to repairs....so i recommend leasing them.

1 hour ago, RUTGERS95 said:

also, anything you put on a cc, you should be able to pay with next paycheck is how I look at it.  At the very least, within 3 mos but we live with the 'zero cc debt at end of month' routine

even then,, people should be making serious effort to go back to using cash as often as possible. when you use either credit or debit card, you're essentially asking permission to spend your own dam money.

[Sniper 6,372]

1 hour ago, RUTGERS95 said:

i use cc for everything and then pay off.  I don't like using anything tied to my bank acct in some locations. 

I use strictly my CC for any purchases, for the credit protection from that bank. I don't even remember the last time I used my debit card, except for getting cash at the ATM.

1 hour ago, Displaced Texan said:

I use CC’s that offer me rewards, such as air miles. I pay them off at the end of each month. 
Zero interest. And air miles as an added bonus. Something I can use, might as well get the benefit out of them. 

Exactly what we do. We pack tons on the CC each month, to gain air miles or points, and pay it all off at the end of the month. We gain a ton of free bonuses, just for buying all the necessary monthly crap.

The only time I let it ride is if I get a 0% deal on a major purchase, and pay it down. I never pay interest. I also go one step further, and automatically send a payment weekly to the CC company, to keep paying down the monthly amount, instead of remembering to make one big payment at the end of the month.

[Sniper 6,372]

15 minutes ago, 1LtCAP said:

people should be making serious effort to go back to using cash as often as possible. when you use either credit or debit card, you're essentially asking permission to spend your own dam money.

That's one thing that drives me nuts. Watching someone in Wawa using their debit card to swipe for a $1.50 bottle of Coke. They carry zero cash. I always carry cash, and use it for most of the smaller purchases, Wawa, Chinese food, Pizza, fast food, local businesses, etc. I use my CC in places where there could be a chance of compromise.

1 hour ago, CMJeepster said:

It really boils down to living within your means and knowing he value of a dollar.  Self control and thinking about purchases isn't something that I see much of these days.

It's too easy to just "Swipe and Run". Very few thinks about monthly budgets and spending. It comes down to when the bank account is empty, they stop spending until the next paycheck gets deposited.

The simple fact to financial security, which very few practice, it to pay your self first, pre-tax, and stick at least 10% into a retirement account. Then, post tax, have 10% automatically deposited in a savings account, separate from the checking account, so it doesn't become tempting to spend. Then spend the rest on your monthly crap.

If everyone followed that SIMPLE plan, their lives would be so much better.

[Displaced Texan 11,731]

I’m guilty of ‘swiping’ my debit card a lot for small stuff, but I do carry cash.
Usually $300-500 with me, more if I’m traveling for work. Never know when it might be needed in an emergency. I learned that the hard way once. 

 

 

[1LtCAP 4,262]

1 hour ago, Sniper said:

That's one thing that drives me nuts. Watching someone in Wawa using their debit card to swipe for a $1.50 bottle of Coke. They carry zero cash. I always carry cash, and use it for most of the smaller purchases, Wawa, Chinese food, Pizza, fast food, local businesses, etc. I use my CC in places where there could be a chance of compromise.

It's too easy to just "Swipe and Run". Very few thinks about monthly budgets and spending. It comes down to when the bank account is empty, they stop spending until the next paycheck gets deposited.

The simple fact to financial security, which very few practice, it to pay your self first, pre-tax, and stick at least 10% into a retirement account. Then, post tax, have 10% automatically deposited in a savings account, separate from the checking account, so it doesn't become tempting to spend. Then spend the rest on your monthly crap.

If everyone followed that SIMPLE plan, their lives would be so much better.

I dug myself into a deep hole over 20 years ago this way. it's way way too easy to lose track of just how much money you're spending when you just hand over that piece of plastic.

 most things now....if i can't hand you cash, or a check that i know you're heading directly to the bank with.....then i can't have what you're selling me till i can do one of those 2 things.

[RUTGERS95 890]

I don't carry cash but then again, I'm an adult and have self control....lol

[1LtCAP 4,262]

10 minutes ago, RUTGERS95 said:

I don't carry cash but then again, I'm an adult and have self control....lol

i admittedly do not have that self control with credit cards. but the point still stands about being too easy to run up a bill with them

[10X 3,296]

5 hours ago, RUTGERS95 said:

I don't like using anything tied to my bank acct in some locations.  

The secret is to pick a really secure PIN.    I use the last four digits of pi.

 

[Sniper 6,372]

2 hours ago, 1LtCAP said:

I dug myself into a deep hole over 20 years ago this way. it's way way too easy to lose track of just how much money you're spending when you just hand over that piece of plastic.

Years ago, when my kids were in their late teens and early twenties, I had to beat them multiple times upside their heads, to point out how all the ATM fees added up. This was before plastic was accepted so widely in the 7-11, gas stations, fast food, etc,. so cash was still king.

They would constantly run to the ATM, and get forced to take out $20, even if they only wanted $5. So, first, having the extra cash meant they would blow it. And, instead of waiting to get to their own bank, they would use a non-network bank for the ATM, and get hit for extra fees. Getting nailed for $3 every time you took out $20 really added up.

It took multiple beatings until the point hit home that swiping their debit cards isn't easy and magic money.

[RUTGERS95 890]

5 hours ago, 1LtCAP said:

i admittedly do not have that self control with credit cards. but the point still stands about being too easy to run up a bill with them

oh I wasn't casting any dispersion, was more tongue in cheek.  I don't carry cash because I know I'll spend it but with the card, I know she sees what I spend too....lol

[TurnpikeTed 12]

We had an emergency fund set up prior to the COVID. And only have one credit card that uses primarily for renting movies from Google. Got no other debts either. However, we got smacked pretty hard when COVID hit. It's just time to rebuild and get back to business as usual.

[RUTGERS95 890]

7 minutes ago, TurnpikeTed said:

We had an emergency fund set up prior to the COVID. And only have one credit card that uses primarily for renting movies from Google. Got no other debts either. However, we got smacked pretty hard when COVID hit. It's just time to rebuild and get back to business as usual.

sorry to hear that and you did everything right.  However the board can help, let us know.

[TurnpikeTed 12]

1 minute ago, RUTGERS95 said:

sorry to hear that and you did everything right.  However the board can help, let us know.

Appreciate the sentiments, but we're not so bad off. Our savings took a hit. But we both found alternative lines of work--primarily WFH options that have served us extremely well. Just sucks to see the hard work go down the drain.

[RUTGERS95 890]

1 minute ago, TurnpikeTed said:

Appreciate the sentiments, but we're not so bad off. Our savings took a hit. But we both found alternative lines of work--primarily WFH options that have served us extremely well. Just sucks to see the hard work go down the drain.

been there

after my divorce (was planning on be retired by 50 latest with target 48), she got A LOT and i took a year off to be with my boys and yeah, savings took a massive hit.  just get back to the grind and get it back up.  No looking back, always looking forward.  Shackleton said, 'food awaits us in front, death awaits us behind'       so true