MSNBC recently posted the results of a poll which asked: If you had to come up with $2,000 to take care of an emergency, could you?
The answers were sobering, to be honest. Here are some highlights of the findings:
Half of all U.S. households say they “certainly” or “probably” could not come up the funds to cope with such an ordinary financial emergency, according to a new study on financial fragility.
Of households making between $100,000 and $150,000 annually, nearly one-quarter said they “certainly” or “probably” would be unable to come up with the $2,000.
The amount was meant to suggest a major car repair, a co-pay on a medical expense or a home repair. It is far lower than the three to six months’ worth of expenses that financial planners typically recommend people have in savings.
Yet 28 percent of respondents said they could be “certainly” unable to cope with the $2,000 expense, while 22 percent said they “probably” would not.
The survey was conducted in 2009 near the depths of the Great Recession, but the findings were broadly consistent with other data about Americans’ financial resources.
Given that the average US household makes $50,000 per year (roughly), a 3-6 month emergency fund would need to at least be $7,500 to $15,000. So to say that they couldn’t come up with $2,000 if needed shows that most Americans are way, way, way off target when it comes to emergency funds and/or extra savings.
Image credit: Tracy O’s Flickr
