President
Simplicity Division
EFG Companies
According to a recent survey from Bankrate.com, 63 percent of Americans say they are unable to handle a $500 car repair bill; and, only one out of five consumers making less than $30,000 said they had enough emergency savings set aside to handle an unexpected bill.
In addition, a Pew Charitable Trusts study found that six out of every 10 American households reported experiencing a financial shock during the last year, with major car repairs and lost income ranking among the most common.
What does this tell us? That those rosy figures of economic growth don’t match the current financial stresses of Americans. The fact is, with inflation increasing the costs of food, healthcare, clothing, utilities, etc., and slow wage growth, many Americans are finding it more difficult to pay in to their “rainy day fund”.