When faced with an unexpected $1,000 expense, more than one-third of Americans would borrow the money, according to a new Bankrate survey. That may include tapping their credit cards, seeking money from friends or family or taking out a personal loan.
Most would not turn to cash savings because they don’t have it, the personal finance website found.
Fewer than half of Americans, 44%, say they can afford to pay a $1,000 emergency expense from their savings, according to Bankrate’s survey of more than 1,000 respondents conducted in December.
That is up from 43% in 2023, yet level when compared to 2022.
“We’re just not wired to save,” said Brad Klontz, a certified financial planner and expert in financial psychology and behavioral finance. Our brains are instead programmed to focus on our immediate needs.
Controversial thought maybe, but I indeed have many friends who should and could afford to save, and choose not to.
None of these friends are wealthy or have high salary’s, they’re just bad with money
Yeah, I’m curious as to what percentage of that group simply can’t afford to save, and the percentage that simply choose to spend instead. Like you, I know people who certainly could be saving money, but instead have new phones all the time and also are driving leased luxury cars.