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"What that means on the ground: Even a thriving economy can leave people close to the edge. The Fed found that 27% of survey respondents would have to borrow money or sell something to cover a $400 emergency — 12% couldn't cover it at all. Other findings from the annual Fed report, which is based on a survey last fall of 11,000 people."
Borrowing money to cover an unexpected expense isn't necessarily the end of the world.
From what I read 94% of respondents would be able to cover it, with:
45% in cash
33% on credit card, paid off in next cycle
16% on credit card, paid off over time
Again that 16% obviously isn't engaging in best practices for personal finances, but it also doesn't mean they can't pay an unexpected expense because that is exactly what they would do with their credit card. A headline saying 94% of Americans could cover a $400 emergency expense isn't as attractive.
I don't operate with cash so it would be tough to get $5K cash, I don't bank with a brick and mortar bank so the only cash I can get is with an ATM which is limited to $1K/day but even that would be tough because I keep very little money in my checking account... usually $300 or so. The rest is in some other place.
not too worried about it since I've never ever needed that much cash in the last 20 years so it's highly unlikely I will need it in the future. What transaction needs $5K in cash, drug deal around the corner block??? joking!
I don't operate with cash so it would be tough to get $5K cash, I don't bank with a brick and mortar bank so the only cash I can get is with an ATM which is limited to $1K/day but even that would be tough because I keep very little money in my checking account... usually $300 or so. The rest is in some other place.
not too worried about it since I've never ever needed that much cash in the last 20 years so it's highly unlikely I will need it in the future. What transaction needs $5K in cash, drug deal around the corner block??? joking!
Folks selling things that go quickly, require cash in hand. Sometimes a day will lose you the sale.
Obviously I didn't mean that... I meant that OP seems to be asking for those who don't have the money, how long would it take to LEGALLY come up with it. Like, back when I was broke, how would I have found the cash in an emergency. Payday loan? Pawn shop? Borrow from a friend/relative? Admittedly I did all three at one time or another. Have you never been poor?
Perhaps OP should clarify, rather than letting the thread go on and on if everyone (or even just one) has the wrong idea.
Yes, I've most definitely been broke. For MOST of my adult life, I was a person who would have had a hard time coming up with $400. I would have found a way to get it, but it would not have involved sauntering down to the bank to withdraw it from a savings account, because I didn't have one. As a matter of fact, I lost my engagement ring forever because my now-ex-husband needed to pawn it to pay back a bookie. He got $450 for it and I never was able to get the money together to redeem it. That was a long time ago, and after a while the ring meant nothing anyway. We have been divorced for more than 20 years. And now I have a savings account.
I am just saying that I believe the OP posed the question assuming one has the money in the bank. I agree that s/he should clarify.
Wow, you had to go back and add this? Nice try, but see my last comment.
I don't know how you all could have interpreted their follow-up of "20% could not COME UP WITH $400" as "for those who have thousands in the bank already."
I didn't take that as a "follow-up". I thought he was just making a random comment not really related to the first question.
Folks selling things that go quickly, require cash in hand. Sometimes a day will lose you the sale.
Maybe they should do a survey about how many people in the last six months needed $400 in cash to do anything? My guess is such needs are mostly drug or gambling related. Maybe a few dining spots like Peter Lugers in NYC who still insist on cash? Otherwise who buys "things" that often anymore with cash? Not saying you can't but it's just rare.
I paid for a guy who did 3k of installation work in my house by Zelle. I was thinking I hope he doesn't ask for cash but he offered me that or Venmo.
Cash needs are just not real anymore. Tying them into a discussion about the solvency of people doesn't make sense.
Maybe they should do a survey about how many people in the last six months needed $400 in cash to do anything? ........
Raising my hand. I buy 40 pound boxes of meat at a store that won't take checks and I have a policy of not putting groceries on my credit card. Although that is a planned purchase and I don't wake up in the morning and need $400 in cash that I didn't budget for and all I have to do is to swing by the bank and pick it up.
I also buy groceries at a store that does not accept credit cards, although I rarely buy $400 worth in one trip.
I pay cash for some of my gasoline because it is 10 cents a gallon less for cash (gas for one car, but the other car gets filled at Costco where they don't mark up the premium gas an unreasonable amount) That gas I pay cash for is getting darn close to $100 a fill-up and who knows how high gas will go. Do gas and grocery shopping and I can get over $400 cash spent in one day.
I have a tenant who occasionally pays his rent with cash. That's a heck of a lot more than $400, but no way can it be an expense that wasn't budgeted for. I don't know why he does it, I haven't asked him. I'm happy to accept cash.
Last edited by oregonwoodsmoke; 08-07-2022 at 09:31 AM..
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joking!
