National data on the paycheck-to-paycheck experience is flimsy, but a recent report from the Federal Reserve spotlights the prevalence of extra-tight budgets: F

National data on the paycheck-to-paycheck experience is flimsy, but a recent report from the Federal Reserve spotlights the prevalence of extra-tight budgets: Four in 10 adults say they couldn’t produce $400 in an emergency without sliding into debt or selling something, according to the 2017 figures. This quote links to a report from the Federal Reserve, which contains this gem: When asked about their finances, 74 percent of adults said they were either doing okay or living comfortably in 2017—over 10 percentage points more than in the first survey in 2013. https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf https://www.federalreserve.gov/publications/files/2017-repor... In other words, the survey finds tat 4/10 people can't cough up $400, yet 3/4 say things are fine for them personally. Later in the report: To assess actual financial literacy, respondents are asked five basic questions about finances (table 34). The most missed question (42% of responded answered correctly): Considering a long time period (for example, 10 or 20 years), which asset described below normally gives the highest returns [Stocks, Bonds, Savings accounts, Precious metals] [Correct answer is Stocks] I suspect that the view of things being fine financially may be a case of ignorance is bliss.