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Survey: 40 Percent Of Americans Have $500 Or Less In Savings

Sunday, October 21, 2012 - 10:06 AM
From CBS Philly
A survey of about 1,100 Americans finds that more than 4-in-10 respondents admit they don’t have more than $500 in readily accessible savings.

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This is why so many people aren't concerned about low deposit rates. You don't make much interest from $500 even with rates over 5%.
7
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Sunday, October 21, 2012 - 11:13 AM
I find the article to be very misleading.  It states many have 401 Ks but basically no liquid funds.  This is not the same as finding that Americans have no savings.  What do they think 401 Ks are?  Maybe the reason they have no liquid cash is that they are putting it all into their 401Ks.  The article would have been more accurate if it bothered to find out how much money Americans have in 401 Ks or other type savings and then stated they have very little in liquid funds. I guess they didn't bother to check out forums and blogs like these or they would know many are saving or "trying" to save under these terrible financial conditions.  I personally feel savers should have more liquid funds for emergencies.
1
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,010
2. Sunday, October 21, 2012 - 12:29 PM
Re: Paoli2 @ 1. Sunday, October 21, 2012 - 11:13 AM

"I find the article to be very misleading.  It states many have 401 Ks but basically no liquid funds.  This is not the same as finding that Americans have no savings."

Read the source of the article and it will clarify it for you...

http://www.creditdonkey.com/no-em...avings.htm

“While this group may be rich in home equity and other investments, their assets are not liquid. In other words, none of those items converts easily into cash in an emergency. People in this situation even have their own name – the "liquid asset poor" – a term coined by the Washington, D.C.-based advocacy group Corporation for Enterprise Development. With no cash reserves, they are just one paycheck away from financial ruin should an emergency or job loss happen because they cannot easily access cash on a moment’s notice.”
5
ShorebreakShorebreak2,613 posts since
Apr 6, 2010
Rep Points: 14,167
3. Sunday, October 21, 2012 - 12:41 PM
Shorebreak:  Thanks for pointing out the additional information.  I just read and posted about what the article said.  The info you provided does clear things up.  This is why I firmly believe in always having a decent amount in liquid cash.   Having "things" we think are worth a lot doesn't help if an emergency arises and we can't find a buyer for what we need to sell.
3
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,010
4. Thursday, October 25, 2012 - 9:21 AM
1
ShorebreakShorebreak2,613 posts since
Apr 6, 2010
Rep Points: 14,167
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