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Can you afford a $1,000 unexpected expense?
- Thread starter Z-oo31
- Start date
I started working last year at a late age. I got 1-4 covered. Skipping 5 and 6. I live with parents.
I would love to build wealth, but I need a noticeable increase in wages.
Only $500/mo in savings and $100/mo in whatever I want with it.
I'm hoping to save up for Disneyland Annual Pass with expenses. Should be $3,500. ETA Late 2022.
Same here. Easy, but it stings. Especially when it come to car related stuff.
Just wait until you find out that you need $100,000 retirement savings for every decade your age. Even 650,000 savings at retirement from age 65-75 isn't going to go very far as that's only 65K a year and things will be so much more expensive in the future.
A whole lot of people are in for a rude awakening and will spend their twilight years living in poverty.
Why is being financially stable disgusting?
Sometimes this place seems to have a disdain for not even rich but people who aren't in poverty.
Yes, I've built my entire savings system around the idea that I should be able to afford a 20k emergency at any time in cash. If I can't do that I've made some stupid mistake and go on a spending diet until it's fixed.
The goal should be 20k liquid emergency, 100k credit emergency (pulling directly from available credit without any cash advances or interest penalties, and without destroying credit by utilizing any more than 30% of a given credit system). Obviously if such a thing hit I made some serious mess up, but it's very comforting knowing I have tiered systems in place to protect my family.
Took a few years after college but I was able to get there through good investments (home, CD's at the time and property sales)
The goal should be 20k liquid emergency, 100k credit emergency (pulling directly from available credit without any cash advances or interest penalties, and without destroying credit by utilizing any more than 30% of a given credit system). Obviously if such a thing hit I made some serious mess up, but it's very comforting knowing I have tiered systems in place to protect my family.
Took a few years after college but I was able to get there through good investments (home, CD's at the time and property sales)
Yeah, I consider myself lucky to have never been out of work since graduating in 2012. I can't really afford to buy a home and I've got 40k in student loan debt, but otherwise I'm in good shape. I could cover six months of expenses with my emergency fund, 20% of my salary goes into my 401k, no credit card debt, etc. New job will allow me to get a decent part time MBA for no debt as well
Dude $500 a month in savings is not "only" to most people. Good job.
If I pull funds from my brokerage account.
I'd just rather not do that for very obvious reasons.
I'd just rather not do that for very obvious reasons.
I can, now, but if everything goes well I'll be moving before December, and that will use almost all my savings, and I'll be back to zero.
I know I'm lucky.
I know I'm lucky.
Not being completely broke is disgusting? That's a weird take. We're not talking about being a millionaire here, just being in a somewhat stable financial situation.
Depends on the insurance. I have a high deductible plan. I'm on the hook for the first $2,250 in medical expenses I incur each year.
Yes. I just had. My mom needed some money for a small dental surgery and I did spend around $1000. As long as it is once in a while, no problem.
An old excoworked always said, save at least a month or two worth of your salary and keep it at all cost. I have been doing that since my early twenties.
An old excoworked always said, save at least a month or two worth of your salary and keep it at all cost. I have been doing that since my early twenties.
Yes, but I would really not have to. I could afford to do so, but it would have a significant impact on my life.
... I don't know why you don't notice hyperbole when it's right in front of you. Obviously I wasn't being entirely serious. I'm glad most people here got their shit together better than I do.
But I do think it's weird. I've never been in a situation where I could say that I could spend 1000€ right here and now if absolutely necessary. I've never had more than a little over 1000€ in my bank account, and I haven't been able to store up more than 200€ in it since the past year or so. I've never known someone who could take 1000€ out of their account and not be in extremely bad trouble by doing so, either. I can't imagine someone replying "yes" to the poll yet not being at least at the upper end of the middle class.
Just me? Probably not, as I usually keep no more (most days quite a bit less) than my currency's equivalent of 1000$ in my savings account and put most of my savings in stocks and mutual funds. But as my wife is also employed and likes to keep quite a bit of money in her salaried account instead of taking on risky investments, she can probably cover such an expense easily. That's how we prefer it too.
It's not really that hard unless you make minimum wage or the equivalent. And even then it's not impossible. It's all about not living above your means. If you make less you have to spend less. If you're living paycheck to paycheck your expenses are too high. Maybe your rent/mortgage is too high, but generally it's all the small expenses.
It will take longer for some than others, of course, but the most important thing is to START. Many never do, because they think they can't. Everyone can. But yeah, of course it will be easier for someone who makes more (although many fall into the trap of spending more because they can, so they don't save much if anything anyway).
I work a shitty trade job where I work my ass off, my gf doesn't make much money as she works at a call center, we had to make a lot of sacrifices lately to get to where we're at...definitely not upper middle class
Sure but it would suck. I have 15k in savings and there's always my 401k. btw I'm not making tons of money either. Just save
I don't know where you're from but 1000 euro can mean a lot or not that much depending on which country you're in. It's very much possible that if 1000 euro is hard to reach for you that you're also not likely to run into a 1000 euro emergency.
I'm on the cusp of being able to afford it. I just got my first full time job. I've paid off my credit card debt and I currently have 30k in Student Loan Debt.
Right now my rent is low, but who knows how long that'll last for. I've just been saving every dollar I can trying to get some sort of emergency fund in place in case something happens.
Right now my rent is low, but who knows how long that'll last for. I've just been saving every dollar I can trying to get some sort of emergency fund in place in case something happens.
It's decent, but I recently started working. I spent many years at home.
This would've been great had I started 6 years earlier.
I couldn't afford a $100 unexpected expense, lol. I live paycheck to paycheck and take home like $700 a month.
Yep, smartest thing you can do.
Cutting spending where you can is more powerful than increasing income. Obviously it's good to pursue both, but cutting spending is more important.
$1,000 is a first good milestone before the at least savings 3 months worth in expenses.
Of all the weird survivalist habits I picked up, keeping a a decent amount of cash on hand is the one thing I've been real good at maintaining.
Sorry! Thanks for clearing that up.
The GOAT. Helped me get my ass in gear where other methods totally failed.
