4 ms·

Maybe the lesson is to save. There's a huge number of very unlikely risks. Too many risks to carefully avoid them all. Something unexpected will happen. Insura

Maybe the lesson is to save. There's a huge number of very unlikely risks. Too many risks to carefully avoid them all. Something unexpected will happen. Insurance can help, but as the articls shows, not always.

ccvannorman 11y ago
This after a study reveals more than half of Americans have less than $1k in savings. I'm not saying you're wrong, I'm saying that in extreme cases, most people would simply go bankrupt or starve. Something to think about when you root for certain laws and politicians..
- kornish 11y ago
  Just to play devils' advocate, that's less than $1k _in a savings account_. Many people store cash straight in their checking accounts or have much more than $1k in stocks and bonds which aren't too hard at all to liquidate, and the figure you're quoting didn't account for that.
  - nemo44x 11y ago
    You're parsing wrong here. It means people don't have that much liquid. As in saved.
    - kornish 11y ago
      Sure, that's what I said. :)
- esaym 11y ago
  How is that correct? Almost 70% of americans own their own house. Are you telling me that one can get a mortgage and make a down payment for a new house with only $1k in savings?
nathanb 11y ago
Seriously. I don't know a lot of people for whom a surprise $50k bill would be "unfortunately" rather than "disastrously".
- odonnellryan 11y ago
  I don't think there are that many people. 50K is a lot.
  - gozo 11y ago
    I know plenty of people that live in $1MM apartments that doubled in value over the last 10 years. So while they might not be able to "spare" $50k, it's not that big a deal overall. Of course I know other people for which that would be a lifetime of savings.
- aaron695 11y ago
  I assume they are not silly enough to buy a house then right?
  - nathanb 11y ago
    Is it "silly" to buy a house when you don't have $50k in your emergency fund? I have been very financially lucky, but I'd still have to sell a lot of stock -- dipping significantly into funds earmarked for other things -- to pay off a surprise $50k expense. I certainly couldn't have done so right after having bought my house.

ccvannorman 11y ago

This after a study reveals more than half of Americans have less than $1k in savings. I'm not saying you're wrong, I'm saying that in extreme cases, most people would simply go bankrupt or starve. Something to think about when you root for certain laws and politicians..

kornish 11y ago
Just to play devils' advocate, that's less than $1k _in a savings account_. Many people store cash straight in their checking accounts or have much more than $1k in stocks and bonds which aren't too hard at all to liquidate, and the figure you're quoting didn't account for that.
- nemo44x 11y ago
  You're parsing wrong here. It means people don't have that much liquid. As in saved.
  - kornish 11y ago
    Sure, that's what I said. :)
esaym 11y ago
How is that correct? Almost 70% of americans own their own house. Are you telling me that one can get a mortgage and make a down payment for a new house with only $1k in savings?

nathanb 11y ago

Seriously. I don't know a lot of people for whom a surprise $50k bill would be "unfortunately" rather than "disastrously".

odonnellryan 11y ago
I don't think there are that many people. 50K is a lot.
- gozo 11y ago
  I know plenty of people that live in $1MM apartments that doubled in value over the last 10 years. So while they might not be able to "spare" $50k, it's not that big a deal overall. Of course I know other people for which that would be a lifetime of savings.
aaron695 11y ago
I assume they are not silly enough to buy a house then right?
- nathanb 11y ago
  Is it "silly" to buy a house when you don't have $50k in your emergency fund? I have been very financially lucky, but I'd still have to sell a lot of stock -- dipping significantly into funds earmarked for other things -- to pay off a surprise $50k expense. I certainly couldn't have done so right after having bought my house.