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View Poll Results: Can you Cover an Emergency Expense?
I cannot cover a $1,000 expense 0 0%
I can cover anything under $2,500 0 0%
I can cover anything under $10,000 15 25.42%
I can cover anything under $50,000 22 37.29%
You name it, I have it! 22 37.29%
Voters: 59. You may not vote on this poll

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Can You Cover An Emergency Expense?
Old 05-09-2016, 09:16 PM   #1
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Can You Cover An Emergency Expense?

Since we are on a poll kick, here is one.

I think we have a biased selection of people here, but maybe we are just ‘ordinary’. I read a recent article about how much money people could come up with. I know in my early days as a landlord, some tenants had a difficult time with money.

I may not have much in my wallet at any given time, maybe $40 on a ‘refill’ day. But I do have enough credit cards and access to funds I could spend quite a bit, if needed. I just bought a house for almost $40K and it didn’t even put me into any reserve cash.

Could you cover an unanticipated expense, or a great investment, of a few thousand? Were you ever in a position where even a few hundred was a big stretch? Even in HS, I could come up with a few grand, so it’s hard for me to understand.

The Fed asked respondents how they would pay for a $400 emergency. The answer: 47 percent of respondents said that either they would cover the expense by borrowing or selling something, or they would not be able to come up with the $400 at all.
And another one…

A 2014 Bankrate survey, echoing the Fed’s data, found that only 38 percent of Americans would cover a $1,000 emergency-room visit or $500 car repair with money they’d saved.
And even the ‘rich’ households have trouble…

The Bankrate survey reported that nearly half of college graduates would not cover that car repair or emergency-room visit through savings, and the study by Lusardi, Tufano, and Schneider found that nearly one-quarter of households making $100,000 to $150,000 a year claim not to be able to raise $2,000 in a month.
Many Middle-Class Americans Are Living Paycheck to Paycheck - The Atlantic

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Old 05-09-2016, 09:19 PM   #2
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The wife starts to get nervous when the checking account balance gets under $25,000.

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Old 05-09-2016, 09:19 PM   #3
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Yes, hundreds or thousands with credit card or a check.
DH retired 2014.
Sold my business in '16 and retired 5-17!
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Old 05-09-2016, 09:23 PM   #4
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I answered "anything under $50k" because I could simply write a check on one of my mutual fund accounts which have just under $50k in it. Over $50k I'd have to write multiple checks or transfer some money around.
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

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Old 05-09-2016, 09:29 PM   #5
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I would need to tap into my real savings accounts, but could cover up to $50K without much issue, just a couple days to get the money. I don't keep much in local bank accounts, so that would be $2500 limit if I needed cash today.
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Old 05-09-2016, 09:32 PM   #6
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10K to 50K on the poll is a pretty big jump. When I needed a fairly new used car to replace the one that died, about 20K later, I paid in cash and wasn't that much pain. But 50K, I dunno.

I voted for under 10K as I like to choose below my means .
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Old 05-09-2016, 09:51 PM   #7
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My after-tax accounts are good for anything below a mid 6-figure number, but I may need a couple of days for fund transfer. Above this level, I would need to draw on before-tax accounts, and the tax levied needs to be considered.

I have to go back to the early 80s to be at a time when I could not get $50K cash for emergency. And that was in my late 20s, and just a few years out of college.

Nope, I was not rich, nor made a boatload of money. I just love to keep some money around than to spend it. Even while in college, I always had several thousands, just for the pleasure of having it.
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
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Old 05-09-2016, 09:54 PM   #8
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Yes, I could cover a few thousand, and yes, I've definitely experienced times when even a few bucks would have been hard to muster...
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...not doing anything of true substance...
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Old 05-09-2016, 10:40 PM   #9
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I can cover a lot, but the question is if I want to. I don't want to, but I will.
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Old 05-09-2016, 10:46 PM   #10
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