Enough to Get by But Not Enough for an Emergency
A recent report by Gallup.com shows that until Americans reach a yearly income level of $48,000, a majority say they can handle a “substantial purchase or unexpected major expense.” Americans display different thresholds of financial security as their income increases.
When it comes to daily spending, once you reach the $60,000-a-year-category a majority of Americans say they actually are ok with the amount they typically spend. As can be expected, “it appears that relatively few Americans are so comfortable with their financial situation that they are willing to admit that they have more than enough money.”
So what does all of this mean?
Most Americans are getting by on their yearly income with little concern for their daily spending, but a majority doesn’t have much of a “financial cushion” that they can use for emergencies or large purchases.
“A majority of those making $24,000 a year or more have enough money to buy needed things on a daily basis, but more than half of those making less than $48,000 a year say they could not handle a financial emergency.”
Source: http://www.gallup.com/poll/163319/enough-lack-cushion.aspx?version=print