Money magazine released the following stats in their April issue. This set is for households making below $100,000 a year:
- 55% are living paycheck to paycheck
- 66% couldn't handle an unexpected $10,000 expense
- 47% couldn't live comfortably even three months if breadwinner lost his job
- 47% would find it tough to get new job if laid off
Now here are the percentages for households making more than $100,000 a year:
- 37% are living paycheck to paycheck
- 38% couldn't handle an unexpected $10,000 expense
- 32% couldn't live comfortably even three months if breadwinner lost his job
- 37% would find it tough to get new job if laid off
And my results:
- I am not living paycheck to paycheck
- I could handle an unexpected $10,000 expense (though I wouldn't like it)
- We could live comfortably for many months if I lost my job (some would argue that I have enough to retire now)
- I don't think it would be difficult to get a new job if I was laid off, but it would certainly take some time
And some general conclusions about the numbers above:
- All the percentages seem low to me for the top group
- I'm surprised (though I guess I shouldn't be) that the "over $100k" group is doing so poorly
A few more facts from Money:
- 64% of people with household income below $100k are worried about their family's economic security. 49% with household income over $100k are.
- 54% of men are worried about their family's economic security. 66% of women are.
- The most pressing money worries people have are: 1) having enough money to last through retirement, 2) how to manage if a real financial emergency arose, and 3) living from paycheck to paycheck
Reading these numbers, it's amazing to me that our economy is afloat. With people being in such bad shape, I'm surprised they spend a penny. Then again, maybe it's because they spend, spend, spend that our economy is doing at least "ok."
What's your take on the info above?