50% of Americans Have Less than 1 Month of Income Saved
A poll completed online by Monster.com has found that 50% of Americans have less than one month of savings. This scary statistic further induces the unemployment problem as thousands of Americans no longer qualify for unemployment, and have just a few weeks of savings before they’re tapped dry.
Monster Poll Results
according to a press release:
If You Were Laid Off Without Severance, How Long Would your Savings Cover Your Living Expenses?
One Week or Less: 34%
2-4 Weeks: 16%
1-2 Months: 16%
3-5 Months: 14 %
6 Months or Longer: 20%
Deciphering the Data
We have to understand that there is some kind of distortion in the data. Monster.com is a job site, and it is likely that the people who are going to the site are in more desperate (financial) need for a job than others. Also, because it is the internet, we have to consider that the dataset is complete with a younger segment of the American audience who might be fresh out of college for all we know. Even assuming some natural distortion in the data, the results are alarming to say the least.
One week or less?
ARE YOU SERIOUS? One week or less of savings means that the average American is going from broke to bankrupt the second they lose their job. Only 1 out of 5 Americans is properly secure in their financial condition, able to weather a fiscal storm first with 6 months of unemployment benefits followed by 6 additional months of savings.
Food for Thought
If nothing else, take these numbers to heart and learn the mistakes of others. Surely, had each person had 6 months of income saved up being going into this deep plunge, the recession would have been nothing but a blip on the radar.
Let the deleveraging begin!!!
It’s a real scary statistic made on US unemployment issue!
Most parts of the world are facing economic problems for the last 2 years. Disposable incomes are down worldwide. At the same time some areas have actually seen a growth in investment. All in all though savings are low.
too many unknowns to consider this data useful.
the same time some areas have actually seen a growth in investment. All in all though savings are low. too many unknowns to consider this data useful.
I think regardless of the exactness of the data it does show that Americans aren’t prepared for crisis. In the United States things usually work out for people, so they don’t feel the need to save for a rainy day.