6 months expenses, not 6 months salary.
If your expenses are more than your pay then you can either get a better paying job, cut your expenses by moving, or die
There are other ways to cut expenses too. I’ll bet a lot of people (not all, but a lot of them, maybe even a majority) are paying for things they don’t need when they’re living paycheck to paycheck. Things like Spotify, Netflix, fast food, car washes, probably even car payments on a car that is beyond their means or at the least way more car than they need.
Every friend of mine I’ve helped get to a financially stable and responsible point in their life could do it without having to increase their income. Obviously an increase in income makes it a lot easier to do this, but if you don’t have the behaviors down, then you’re just going to creep your lifestyle when you make more money.
Also, 6 months may be more than needed depending on your field. If you lost your job today how long would it take you to find a new one? It could be six month but maybe less. I keep 3 months of expenses on hand because it has never taken me more than a month to find a different job.
Didn’t anyone notice during covid these “highly responsible business people” couldn’t make it a couple months without the “to big to fail” bailouts or free covid money?
Months? Dune couldn’t make it 2 weeks. Just standard issue capitalist hypocrisy.
It isn’t 6 months salary, it is 6 months worth of expenses
So if I want to accomplish this in a year I should be putting away half of every paycheck? Between rent, bills and groceries, who the fuck can afford that?
I world say it’s getting to 3-months first, then paying down debt with high-interest rates, then trying for 6-months of expenses. Could easily take a decade, but the idea is that once you have that 6-months saved, it’s less likely that you’ll re-enter into high-interest debt in the first place.
It’s a however long it takes goal. I’m hoping to have it done in 2, although 3 and change is more realistic.
Unfortunately, if you can’t afford to live with financial security, you can’t afford to live. I haven’t had an entertainment budget in over a year, and food has basically been what’s on sale at the grocery store and maybe a gyro every month.
Also, maxing out the $23.5K of the 401K retirement account.
Easy, have a side hustle selling drugs and pay everything cash.
Just stop eating and photosynthesize like the rest of us responsible adults
6 months of expenses, not income.
Most people can. I make $40k per year in a major city, and I’m getting there.
Considering rent or mortgages alone takes a vast percentage of many people’s paychecks before you factor in things like student loan and medical debts, most people cannot.
And I have no idea how you can even live on $40k a year in a major city unless you’re eating beans and rice with every meal and living in a studio apartment with 4 other people.
Median income here is in the mid $60’s. I’m definitely poor, but I do save some money.
I live alone, and cook basically all my meals. Eating out and processed foods from a grocery store are both too pricey for more than once or twice a month. Mostly buy meat and fresh produce because carbs tend to give me stomach issues in large amounts.
Unfortunately, I am disabled. So while I have insurance, I cannot afford to see a specialist as regularly as I should. To be fair, this is out of network and like $700/month on top of my existing premiums and HSA contributions.
If nothing too crazy happens in the next year, I’ll be able to change jobs and get my medical care back in network, meaning I don’t need to ration doctor’s visits for my disability. If nothing happens in 2 or 3, I’ll have my emergency savings in a very good place. If nothing happens in 5, I might pay cash for my next car.
After that, fuck it. I’ll be financially stable, I’ll have another decade before I have a planned major expense like a car, and home ownership is a pipe dream here anyways. Last I looked, they start around $400k, which would mean coming up with about $180,000 for my down payment lol
Edit: Since you brought it up specifically, my rent and utilities is about $1200. I live in a very old building in a shitty neighborhood. The jail is right across the street, so there’s enough of a police presence to keep it safe. It is clean, but my landlord is fucking terrible and I have to sue or threaten to sue to get anything fixed.
I don’t have 6 hours of my salary in savings most days.
