A disturbing article from the Wall Street Journal reports that Nearly Half of Americans Are ‘Financially Fragile’, which is defined in the article as households who “definitely or probably couldn’t come up with $2,000 in 30 days.”
The $2,000 figure was chosen because it’s roughly the cost of “an unanticipated major car repair, a large co-payment on a medical expense, legal expenses, or a home repair”—in other words, expenses that are hardly out of the question for a typical household.
According to the article 46.5% of all respondents are living very close to the financial edge—in other words, nearly half of America. And it’s one of the worst rates in the world—in Italy for example, the rate is only 20%. But it gets even worse; an additional 25.1% of U.S. respondents answered that they were “probably able” to come up with $2,000—meaning that they aren’t entirely sure.
That’s a sad state of affairs no matter how you interpret it.
How should we respond to this information? By making certain we don’t fall into the same category!Continue Reading