Americans and money. This pair has a strained relationship, to say the least. Too many of us live paycheck-to-paycheck. As of a result, millions of Americans are one paycheck away from eviction. We as a country saw this first-hand after cities or states shut down non-essential businesses to keep the Coronavirus from spending. Due to that, layoffs ensued, as those business owners didn’t have enough money to pay their employees. With the beginning of April saw the time for Americans to pay their rent or mortgage. And many didn’t have the money to do so.
Americans And Money – We Don’t Prepare For Hard Times
As I stated in the opening paragraph, millions of Americans live paycheck-to-paycheck, which makes saving money difficult.
Even though CNBC reported about a survey from Bankrate showing Americans having a few thousand dollars in a savings account, it appears not to be the case anymore.
I understand there are people who are underpaid. Besides that, there are Americans burdened with student loan debt or credit card debt or both. High rents or mortgages eat up a large portion of people’s paychecks. Finally, medical costs are astronomical.
It’s vital to save up some money because hard times will come. Yet, saving money doesn’t feel good because one can’t (or shouldn’t) spend it.
We all work hard for our paychecks and we want to spend it on things or experiences which bring us joy. I’m right there with you on that! After paying off all of my debt last year, I wanted to increase my lifestyle. Go on more trips? Of course! Buy some electronics? I thought about it! Despite my yearnings, I saved the money instead. I knew having an emergency fund was imperative.
Now Americans are learning that too, but it’s too late.
Americans And Money – Waiting For The Government
When President Trump signed the Coronavirus Tax Relief on March 27, 2020, the first question Americans asked was: When do we get our money? They didn’t like the answer.
The government said it would take at least 2 to 3 weeks for Americans to get their stimulus money via direct deposit. On 4/3/2020, U.S. Treasury told Americans they would start depositing the $1200 on 4/13/2020. However, if you don’t have a bank account, it could take up to 5 months for you to get a check in the mail.
As a result of this news, many unemployed Americans pleaded for help now. They had bills to pay and needed to buy food. In turn, the Federal government told those people to apply for unemployment benefits because usually those funds are disbursed faster. However, with millions of Americans filling unemployment claims, it may take longer for them to receive benefits due to processing times.
Personally, I’m not shocked by any of this. The government, be it State or Federal, moves slowly. I was taught by my family not to depend on the government because of this reason and more.
Due to the slowness of the stimulus checks, some Americans took it upon themselves to help those who needed money now. Several people created GoFundMe campaigns. I retweeted this guy who sent money to those who needed it via Zelle or CashApp. It was great to see Americans come together to help each other. Yet, it was bittersweet to see the amount of people who needed the help.
From what I saw on Twitter the past couple of weeks, some Americans will create an emergency fund after this ordeal is over. I’m happy that they will, yet sad that it took an huge emergency to spur this.
I don’t like for people to learn the hard way, because it sucks. However, some people only learn that way.
Will more Americans save their money? I believe they will…at first.
I have a theory that many Americans will save money, and feel good about saving it. The economy will take time but it will bounce back. For a year or two, may three years, Americans will be weary spending money on non-necessities. However, they will go back to their ways of living on credit and buying things they can’t afford once the economy gets red hot again.
I wish I could say I’m being pessimistic about my view but I’m not. I’m being realistic because I’ve seen it happen too many times.
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