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.
We were also wired not to be born rich with a silver spoon up our asses. We’re wired for higher education to cost 180% higher than it was 20 years ago. We’re wired that our healthcare expenses can cause bankruptcy if we develop a serious illness that requires surgery. We’re wired that car insurance went up 20% in one year. We’re wired that grocery costs went up 35% in one year, in some states. We’re wired that all these gigantic cost increases happen, but our compensation only goes up 2.5-3% depending on employer…or we’re laid off entirely.
Everything you just said was extremely well put, and this guy needs to be TOLD to fuck off.