is it true that MOST people could not come up with $ 1, 000 if they needed to? why? how, when people became so poor?
how they drive the cars they do and live where?
how they drive the cars they do and live where?
Shay
Favorite Answer
They can't come up with $1000 because they use all their income to pay for their home and their car. It is often referred to as "living paycheck to paycheck". All their money goes to pay all their bills and get groceries and they have very little to nothing left over. ANYONE at ANY income level can end up being someone who lives "paycheck to paycheck" just because they take on too many high bills. (this is one reason credit card debt is such a big issue - it is almost too easy to get a credit card - and then create a situation in which your outgoing bills use up much of your incoming money.)
Not being able to come up with $1000 has very little to do with not having a home and a car. You can have these things and "be broke" because you are using all your income to pay for whatever it is that you have.
You can also be broke because you constantly spend any extra money you have on something else instead of saving it for emergencies. I have a relative that has a shopping addiction and is constantly spending money on things she doesn't even need just because it was a "great sale". (she once had 20 different comforter sets for her bed - all still in the original packaging - because she seen a really great sale and had to get them)
BTW - for some people - it might be medical expenses and medical issues that uses up all their extra income.
Raymond L.
under the age of 30, probably over 50% of people, Over the age of 55? not that high of a percentage, although am sure they do exist.
Christin K
Many people would not be able to come up with that--but it doesn't mean they are poor. It means they have not budgeted their finances correctly to put anything in reserve. That's not necessarily poverty.
A lot of people live on credit. I wouldn't say it's MOST people--because I don't think it is--but it IS a lot.
The Oracle of Omigod
Most people do not plan ahead and save. That is called economic ignorance.
Elaine M
The middle class has been disappearing since the late 1990's.