American Economic Insecurity At Its Highest In 25 Years
No matter what we are insecure about, that nagging anxiety in the back of our heads will always get in the way of what we want to accomplish. The same goes for economic insecurity.
Political scientist Jacob Hacker describes insecurity as an “economic tightrope, without an adequate safety net.”
Today, The Rockefeller Foundation alongside Hacker released the findings on the Economic Security Index. What is the ESI? Plain and simple, it is a measure of Americans’ economic security (maybe not so helpful). The index takes into account three major economic risks including a dramatic loss in income, high of out-of-pocket medical expenses, and inadequate financial wealth. The higher the ESI, the greater the economic insecurity.
The study found that a staggering 20.4% of Americans were classified as economically insecure in 2009 (a large jump from only 12.2% in 1985).
It might sound like doom and gloom, but being an avid LearnVester can prevent you from being part of that 20.4%. You cannot prepare for a sudden job loss, but you can control your emergency funds to make sure you have a cushion if you’re in this situation. These are savings that you do not lay a hand on unless you’re in a dire need. We have to expect the unexpected.
And we’ve told you before–you always want to be building your savings (starting now!). You may feel like you’re too young to have to worry about compounding interest and retirement, but having a comfortable nest egg to look forward to will help you keep your sanity and keep you off of that financial tightrope!