RESEARCH_FILE
Diana Farrell
JPMorgan Chase Institute (founding President and CEO)
Known for:Large-scale research on household income volatility using anonymized transaction data
SEE THE PRACTICE
Turn a thought this research explains into one clear move.
THE THOUGHT
“What if no one buys this month”
YOUR RECORDED RESPONSE
“A pending deal is data on what's moving, not a paycheck I've already spent.”
ONE PRIVATE MOVE
Open your CRM. Find one person you haven't reached in 30+ days. Send them a non-sales message with one question. Document that you did it. Notice whether you made contact from calm or from famine dread.
Key findings
- 2015
Analyzing millions of anonymized Chase checking accounts, Farrell and Greig found 84% of individuals experienced month-to-month income changes of more than 5%, with a typical middle-income household needing roughly $4,800 in liquid savings to weather the swings but holding only about $3,000. Weathering Volatility: Big Data on the Financial Ups and Downs of U.S. Individuals ↗
- 2019
Following up with six million families' accounts from 2013 to 2018, Farrell, Greig and Yu found families need roughly six weeks of take-home income in liquid assets to weather a typical simultaneous income dip and spending spike, and that more than 60% of families lack that buffer. Weathering Volatility 2.0: A Monthly Stress Test to Guide Savings ↗