I suppose. But the real safety net for us is the Lines of Credit and the ability to keep costs down. The key is to set up the LOC's before you need them! (and to not use them frivolously).
Some 401K plans will allow you to borrow. If you leave a job with open 401k loans, life becomes interesting.
If you don't count IRAs and 401ks, I have about 3 months worth of cold cash. Another 6 months or so in stocks that can be pulled immediately with no penalty.
Problem is that you are going into debt when you use these. Also, the banks can pull them if they are in trouble.
Saving money depends on your priorities and your stage in life. If you want to buy a house and have kids, start penny pinching right away. Sacrifices will have to be made. That's part of being a responsible adult. Is going to see the latest Summer movie or going to Costa Rica more important than saving up that down payment? It'll be tough like going on a diet. Plus, once you start paying a mortgage, child care, and 529 plan, saving money will be a bigger challenge. That said, do treat yourself once in awhile without splurging. Over half the people in the poll have less than 6 months in their rainy day fund. Personally, I think that is on the verge of disaster. If you get laid off or hurt yourself, you'll be living with mom soon enough. Everyone else... party on.
Since I got married my checking acct nearly dropped to 0 My savings has enough for about 12 months Stupid house and stupid marriage
Sucks but glad you found a job. Plus, even though it's down to 1 month... it did what it was supposed to do, right?
This may be relevant to as a "If I Knew Then What I Know Now" thread, but could you elaborate more on what you did wrong in your college years?
I dont think i will ever run out honestly unless there are a series of tragic events back to back to back and even then i dont think i will run out. Anyone with problems ammassing, i suggest Dave Ramsey's Total Money Makeover. I think if our generation thought about it like our parets, it would be alot better. Today, everyone wants to showoff and do more than they're capable. No matter what anyone tells you, there isnt a thing called " good debt". Debt is just debt, but if you keep your money and stop letting your spouse run up credit cards and feel the need to get everything brand new, then you can more than survive whats going on today.
When I had a mortgage, I was making good money but living check to check. A house will drain you one way or another. I sold my house 4 years ago and am making about the same income wise, and now I have over 1 year worth of savings. I rent a very very nice place for half of what my mortgage was and I'm in no way, shape, or form responsible for any repairs or upgrades. I have money now and and sleep better at night. I'm a renter for life. Unless you pay cash, I'm convinced that buying a home is not very wise. It will drain you.
Exactly! I know people that have houses much bigger than what I have and I probably make 10x what their entire family income is. I'm basically debt free, my business is debt free and life is great. When u want freedom, it aint free, u have to sacrifice. Staying on budget, developing allowances for the entire family especially the wife,lol. It may sting early saying no, but the payoff is great. Hell, I have never owned a new car and it doesn't faze me.Its feels better to walk around the house stress free ithout having to punch a clock and know everthing is good.
I was out of job once for 1 year during the dotcom bust and spent all of my savings. That's when I started to learn about saving and rebuilt my finance in a hard way. I started to budget my expenditure (fixed, variable) with strict discipline. I also set up an automatic transfer to my savings account when my salary comes in every month. This ensures that I won't have buffer to overspend. Now I can live frugally for 2 years with no income.
