Could You Raise $2,000 in a Pinch?
For Immediate Release
October 28, 2011
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Or would you feel pinched?
If your roof sprung a leak or your dentist said you needed a crown, would you be able to write a check to cover such an emergency?
Either might cost $2,000, but about half of Americans say they couldn’t come up with that much cash within 30 days.
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If half of Americans can’t come up with two grand in an emergency, imagine their reaction to our advice that you maintain as much as two years’ worth of spending in cash reserves. For most Americans, $2,000 wouldn’t even cover costs for much more than a month.
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I think that number is conservative.
For one income families, or families where the principle earner, where that earner is over 50, then two years is NOT imho enough.
Last time I updated my formula for estimating “time to find another job”, I had 50-54 as a 3 multiplier / 55-60 as a 4 / 60-65 as 5. That’s probably LOW!!!
A five multiplier says in effect that you may not work again. That is it predicts 5 years to find another job.
Based on what I’m hearing and seeing, 55 and up may be unemployable as other than the WalMart greeter.
These politicians have really mucked up this economy.
And, anyone over 40 should be scared for their “white collar” job. They should be seeking there own business and alternative streams of income.
Those one income families should be thinking along the same lines. Two earners and living on the lesser of the two paychecks is ideal.
No doubt that worse times are coming. Regardless of which party wins in 2012.
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