76% of Americans are living paycheck-to-paycheck
Roughly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings, according to a survey released by Bankrate.com Monday.Fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses, enough to help cushion the blow of a job loss, medical emergency or some other unexpected event, according to the survey of 1,000 adults. Meanwhile, 50% of those surveyed have less than a three-month cushion and 27% had no savings at all.
“It’s disappointing,” said Greg McBride, Bankrate.com’s senior financial analyst. “Nothing helps you sleep better at night than knowing you have money tucked away for unplanned expenses.”
Even more disappointing; The savings rates have barely changed over the past three years, even though a larger percentage of consumers report an increase in job security, a higher net worth and an overall better financial situation.
Last week, online lender CashNetUSA said 22% of the 1,000 people it recently surveyed had less than $100 in savings to cover an emergency while 46% had less than $800. After paying debts and taking care of housing, car and child care-related expenses, the respondents said there just isn’t enough money left over for saving more. Full Story
We take no pride in being right, but we predicted this would happen back in 2005, the year we launched the poverty index. Over the years, we have continually advocated our subscribers to live 1-2 standards below their means and to put this money aside and wait for opportune moments to invest it in the markets. Worst case scenario, this money can be used to pay down debt. Remember you do not own a house that has a mortgage on it; you are just a glorified renter. Until you pay the last cent, the bank holds the title.
Mort= Death Gage= grip or vice. Mortgage means death grip, and that is what a mortgage literally is for most people.
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