A new study revealed that more and more Americans are at risk of going broke. Financial experts warned that almost 30% of U.S. citizens could quickly lose their money if they lose their jobs for just a week.
The idea of going broke is really alarming nowadays since many things-even basic necessities-are getting more and more expensive. If you are worried about your financial status, here's what you need to know about the new study.
Are Americans Going Broke? New Study Shares Alarming Info
Yahoo Finance reported that Clever Real Estate conducted a new study to see how many Americans are at risk of going broke. Based on its findings, more than 51% of Americans could run out of money if ever they lost their income.
The survey also showed that 29% of Americans would go broke if they lost their jobs for a week or just a few days. Matt Brannon, a Clever Real Estate data writer, said that Americans need to have enough savings that can save them in case they lose their work.
However, he said that it is hard to achieve it these days.
"Most Americans have dismal levels of savings. The last time savings were this low for this long was right before the 2008 financial crisis," explained Brannon.
According to Clever Real Estate's study, only about 56% of Americans put efforts to save a portion of their paychecks into their savings.
On the other hand, around 44% of U.S. citizens are already pulling out their emergency funds this 2023 because of various reasons.
"The lone bright spot here is that the question was worded, 'If you lost your income today, about how long would the money you currently have last (assuming you don't change your lifestyle)?'" said Brannon.
Why Americans are Losing Money?
There are many reasons why Americans are losing their money. Aside from the worsening inflation, most of the reasons why U.S. citizens are going broke are personal:
- Many Americans don't have enough emergency savings.
- Some U.S. citizens are disregarding investments and prefer putting their money in the bank.
- Many Americans have excessive debts because of their luxurious lifestyle.
- Numerous U.S. citizens are spending too much in their early retirement years.
- Many people in the United States are overspending because of their poor budgeting practices.
