2. One in five U.S households have zero or negative net worth
- Most households can’t even fund a $500 emergency.
While the wealthiest 25 individuals in the United States today own $1 trillion in combined assets, other households are drowning in debt. The Billionaire Bonanza report dubs these homes as “underwater households,” meaning they have zero or negative net worth.
Unfortunately, 19% of all households fall into this category, while over 30% of black households and 27% of Latino households have nothing to fall back on. Its obvious that families with little savings endure enormous stress should they face a job loss, illness, or even unexpected car trouble. More than 60% of Americans claim they don’t have enough reserves to cover a $500 emergency, according to the report.