Thursday, May 19, 2016
The title says it all. A recent pool by The Federal Reserve Board shows that 47% of Americans would struggle to come up with $400 to deal with emergencies. The article is well worth reading.
The Secret Shame of Middle-Class Americans
The (misguided) idea is that higher education should come along with massive debt. If we add to that a mortgage and car payments most Americans simply accept the fact of living in debt most of their adult lives. If we throw in unexpected job/career difficulties or serious diseases, this means most Americans struggle with keeping themselves from going bankrupt if not literally dying.
Lesson of the day: Cash is king, even for economic collapses you want a cash cushion. Economic disasters teach us that in nearly all cases cash does not lose value overnight, especially not stable well recognized currencies. You should aim to have at least a month worth of expenses in cash.
If banks close and ATMs run out of money, how much cash do you have at hand?
Fernando “FerFAL” Aguirre is the author of “The Modern Survival Manual: Surviving the Economic Collapse” and “Bugging Out and Relocating: When Staying is not an Option”.