Can you handle a $2,000 USD emergency?

[Svnla]

If you do, then you are in good company (25%) because half of Americans don't have $2,000 USD for a rainy day/emergency.

A new study by the National Bureau of Economic Research shows 50% of Americans would struggle to come up with $2,000 in a pinch, for example in the event of an unanticipated car or home repair, a large medical bill or legal expenses.

http://money.cnn.com/2011/05/24/news/economy/americans_lack_emergency_funds/?iref=NS1#0_undefined,0_

 

[Alone]

I'm going to assume you don't mean credit?

 

[MetalMat]

I can now, but before my mid twenties I was broke as a joke

 

[Scotteq]

RULE #1 OF HOME OWNERSHIP: "If It Breaks, Fixing It Will Cost $2,000.00"


Know this, if you ever intend on buying your own place.

 

[gorcorps]

Yes, but barely.

 

[nageov3t]

I wouldn't be super happy about it, but I try to keep about $5K in my savings account... figure that would be enough cash that even if I had no other income, I could survive on it for 3 months without having to rack up credit card debt.

 

[Alone]

Also, and I may be an idiot, but how does that put you in the 25% group? Shouldn't it be 50?

 

[seepy83]

RULE #1 OF HOME OWNERSHIP: "If It Breaks, Fixing It Will Cost $2,000.00 minimum"


Know this, if you ever intend on buying your own place.

fixed

 

[Acanthus]

No, I'm actually in said situation, with a financial aid reversal in the middle of the damn semester after the final dates to withdraw.

It'd be bait and switch, but it's the government so its allowed.

I now owe them $1850 that they never disclosed I would owe before attending college this semester.

 

[SandEagle]

i'm broke as shit. my cc is maxed. no one is giving me extra credit. i blame Obama.

 

[joesmoke]

wouldnt someone who rents, has good health insurance and a reliable car not really have to worry about that?

 

[BTA]

Yes, easily.

 

[Alone]

wouldnt someone who rents, has good health insurance and a reliable car not really have to worry about that?

Shit happens.

 

[MetalMat]

wouldnt someone who rents, has good health insurance and a reliable car not really have to worry about that?

Random things pop up every so often my friend

 

[Avalon]

I wouldn't have a lump sum sitting in my account, but I have plenty of available credit I could drop $2000 on and pay off in a couple months. Although, just got a new job, so...might be seeing some money in my bank pretty soon

 

[nageov3t]

wouldnt someone who rents, has good health insurance and a reliable car not really have to worry about that?

what if your car got vandalized to the point of inoperability and insurance refused to cover it?

let's say, like, all 4 tires slashed and all windows, including the windshield, smashed in.

 

[ViviTheMage]

wouldnt someone who rents, has good health insurance and a reliable car not really have to worry about that?

never, you can't control everything that happens around you.

 

[joesmoke]

Shit happens.

Random things pop up every so often my friend

random 2000 dollar things/shit? like what? im genuinely curious, because i certainly dont have that in savings

 

[dullard]

I keep telling people on this forum that $2000 is the place to be in the emergency savings. Yet, many can't get even to that low, low bar. Even this week I made a post about it.

Yes, I can get $2000 in cash today. If it were up to me, I'd keep the savings at that value. But, my wife is terrified of problems, so she keeps 2 years expenses in a savings account of her own. It is sad to see that money not earn much interest (especially with the stock market going up 30% in the last year). But, she is happy and we'll never have money issues.

 

[Svnla]

Also, and I may be an idiot, but how does that put you in the 25% group? Shouldn't it be 50?

Read the article again, the other 25% or so are not sure (dazed and confused with the amount I reckon..heheheheh), and you are correct this was NOT about credit/credit cards.

Only a quarter of Americans said they are certain they would be able to come up with the funds.

Half of Americans say they aren't prepared for a minor financial emergency.

.......But, my wife is terrified of problems, so she keeps 2 years expenses in a savings account of her own. It is sad to see that money not earn much interest (especially with the stock market going up 30% in the last year). But, she is happy and we'll never have money issues.

How about put that 2 years worth in a reward checking account? I know that you have to do some works (12 debits or more, online only, DD/ach) but 3% with FDIC insurance is not bad and you can withdraw the money anytime without any penalties.

 

[joesmoke]

what if your car got vandalized to the point of inoperability and insurance refused to cover it?

let's say, like, all 4 tires slashed and all windows, including the windshield, smashed in.

that isnt that much if you went with cheapy tires to get by with. especially with full coverage, doesnt seem like such a likely occurence to justify 2k sitting around doing nothing

 

[oogabooga]

I could get 2k in a week. Hurray I guess!

(I could only do this at most twice before I broke though )

 

[spidey07]

random 2000 dollar things/shit? like what? im genuinely curious, because i certainly dont have that in savings

Major car repair/maintenance, home stuff, legal/lawyer stuff, just stuff that can get real expensive real quick.

 

[dullard]

wouldnt someone who rents, has good health insurance and a reliable car not really have to worry about that?

No car is infinitely reliable. It is $2000 to replace an engine, a transmission, or just to get another running used car. Unless it is under warranty, that is out of your pocket.

If you have good health insurance, you aren't wasting hundreds and hundreds of dollars each year on low deductibles. Thus, you might have a medical emergency and need to cover a deductible + copay.

Suppose you rent in many locations (where rent is $1000/month) and the place burns down. Now you need a new apartment. Can you come up with first months rent + 1 months rent deposit ($2000 in many parts of the country) by tomorrow or will you spend weeks in a hotel (another $2000)?

 

[boomerang]

i'm broke as shit. my cc is maxed. no one is giving me extra credit. i blame Obama.

You're just operating just like the feds do. Everything should be fine. You should be able to do anything you want, buy anything you want. Oh, as long as you have a lender willing to lend. You do, don't you?