Survey indicates 50% believe their savings will be wiped out by end of April

[Stevicus]

Survey: 50% say all their savings will be wiped out by the end of April

Also, the unemployment rate could exceed 32%.

Half of the people taking part in a new survey assessing the effect of the coronavirus pandemic on personal finances reported that they believe their savings will run out before the end of April.

Clever, a company that negotiates with real estate agents for lower fees, questioned 1,000 homeowners and renters on March 31 in order to gauge how they have been impacted by the outbreak.

A day before, the St. Louis Fed predicted that 47 million Americans could lose their jobs and that the unemployment rate could exceed 32% before the economic freeze triggered by stay-at-home measures begins to thaw.

Some of the survey's findings include:

—22% of homeowners don’t have enough in savings to cover one month’s mortgage.

—Almost half of renters surveyed reported having less than $500 set aside for emergencies. A similar amount said their savings wouldn’t be enough to cover one month’s rent.

—30% of homeowners had less than $1,000 reserved for emergencies. The Bureau of Labor Statistics estimates the average homeowner spends just under $6,000 per month, and recommends homeowners have between $17,300 and $35,600 squirrelled away for expenses over 3-6 months in case they have no active income.

—12% of homeowners are already behind on mortgage payments due to the coronavirus crisis. About 27% are worried about defaulting on their mortgages.

—More than half of both renters and homeowners say they are racking up credit card debt to pay bills. Federal stimulus checks of up to $1,200 should provide some relief, but the respite is likely to be temporary.

The survey also found that the real estate market has been thrown into turmoil.

Would-be sellers are taking their homes off the market (23%) or dropping the listing price (27%). Nearly a third were holding off on listing their home.

The majority of buyers, meanwhile, are bailing from house searches, either delaying plans (48%) or giving up altogether (17%). However, about a quarter see the pandemic as a buying opportunity should prices fall enough.

I don't think that $1200 will be enough for most people.

 

[shunyadragon]

I am a low income bottom feeder and no, my savings will not be wiped out. The $1,200 dollars will go into savings.

 

[danieldemol]

Survey: 50% say all their savings will be wiped out by the end of April...

Savings... You have savings?

 

[sun rise]

The numbers don't surprise me given how many live paycheck-to-paycheck.

Even if a miracle occurred and we could end all lockdowns on May 1, a lot of the economic damage has already been done.

I expect we'll shortly be discussing if we're only in a bad recession or a depression.

 

[YoursTrue]

Survey: 50% say all their savings will be wiped out by the end of April

Also, the unemployment rate could exceed 32%.



Some of the survey's findings include:



I don't think that $1200 will be enough for most people.

I wonder how many people would have continued going to work if they were permitted to.

 

[Mock Turtle]

If we could have planned for this epidemic perhaps we would all have carried on as before, except we would be wearing masks, gloves, and such (discarding as necessary), isolating the most vulnerable, and keeping apart as much as possible but we still might have been overwhelmed with the numbers getting sick. My fears are inflation, since my mostly fixed income would suffer, with only my house to fall back on, although that might be a benefit as I'm not that bothered if I had to sell and move elsewhere. And of course many are a lot worse off than myself.

 

[ADigitalArtist]

I wonder how many people would have continued going to work if they were permitted to.

Not me. I went on leave of absence before both clinics shut down. They don't form Essential Medical Services. It would have helped me keep on top of bills but it would have been irresponsible to the rest of the public.

 

[Shaul]

Survey: 50% say all their savings will be wiped out by the end of April

Also, the unemployment rate could exceed 32%.



Some of the survey's findings include:



I don't think that $1200 will be enough for most people.

Then the solution is obvious, they need to earn more money, not spend that energy looking for handouts,

 

[Stevicus]

they need to earn more money,

I'm sure they would like to be out there doing exactly that, but with an unemployment rate expected to hit 32%, that's going to be rather difficult for many.

 

[Guitar's Cry]

Then the solution is obvious, they need to earn more money, not spend that energy looking for handouts,

The wealthy could do their part by spending more on their workers and taxes.

 

[MNoBody]

I know of quite a few people...hard working and skilled who have been struggling for the past year....
many are either close to complete insolvency .....others are already there.
recovery....well, .that isn't expected by very many...optimism is a rare attitude
hmmm....hunger games social nightmare, here we come....so it seems

 

[MNoBody]

divide comes first, then conquer.
this is an economic class war, i hope all you simple peasants realize

 

[Shaul]

I'm sure they would like to be out there doing exactly that, but with an unemployment rate expected to hit 32%, that's going to be rather difficult for many.

You don’t get it, just as many that need to earn more don’t. There are many ways to earn money. Some require being “out there” others don’t. Again they need to earn more. I didn’t say it was necessarily easy.

 

[Shaul]

I know of quite a few people...hard working and skilled who have been struggling for the past year....
many are either close to complete insolvency .....others are already there.
recovery....well, .that isn't expected by very many...optimism is a rare attitude
hmmm....hunger games social nightmare, here we come....so it seems

Sounds like the natural consequences of the choices they have made. Life can be tough.

 

[Shaul]

The wealthy could do their part by spending more on their workers and taxes.

It is not for anyone to say what is someone else’s “part”. It is enough to fulfill our own part. Wealth isn’t gained by taking. It is created by giving. “Soak the rich.” The same old tired ineffectual lie. It doesn’t work. It never has.

 

[MNoBody]

Sounds like the natural consequences of the choices they have made. Life can be tough.

sounds like a typical blame the victim schpiel

 

[Regiomontanus]

Survey: 50% say all their savings will be wiped out by the end of April

Also, the unemployment rate could exceed 32%.



Some of the survey's findings include:



I don't think that $1200 will be enough for most people.

I am an ongoing supporter of the central NY food bank. There is so much poverty there in good times; things are getting very bad there now. There are already long lines of families waiting for food. Shocking! And to think things could get worse? Oh my.

 

[Guitar's Cry]

It is not for anyone to say what is someone else’s “part”. It is enough to fulfill our own part.

Aren't you? "Then the solution is obvious, they need to earn more money..."

If it is someone's responsibility to work to earn resources, then it is the responsibility of the owners of those resources to dole them out accordingly.

Wealth isn’t gained by taking.

It is. The wealthy own resources. Resources don't magically appear out of nothing.

 

[Shaul]

sounds like a typical blame the victim schpiel

There’s no blame implied in what I wrote. If they are “victims” at all they are victims of their own devices. Sound more like you want to blame shift to the “other guy”. Denying personal responsibility is no panacea.

 

[Stevicus]

You don’t get it, just as many that need to earn more don’t. There are many ways to earn money. Some require being “out there” others don’t. Again they need to earn more. I didn’t say it was necessarily easy.

No, I get what you're saying, and you're right: People need to earn more money. But you suggested that there was an unwillingness to work or that people are just looking for handouts. I don't agree with that. Sure, it might be true that a few people here and there are looking for handouts. But I think the vast majority want to work, and they would if they could.

I'm sure you're also correct that there are many ways to earn money. Some ways may be illegal. Some may be questionable, morally and ethically. Some might require a certain level of moxie or savvy that many people just weren't born with.

Some people believe that the only legitimate way to earn money is by working for it, while there are others who benefit from scams and con games, while patting themselves on the back on how clever they are in the so-called "free market." (That's why there are those who call for "soaking the rich," since it is generally believed that the rich didn't earn their money through legitimate, moral, or ethical means.)