Off topic but something to consider

[WildBill]

I started up quite a discussion at work today with a simple question:

If you got fired or laid off today with no severance beyond paying off your vacation days, how long could you financially survive without going into debt?

Amazed to find well paid coworkers with responses like "until the end of the week maybe" or some admitting they have $0 in emergency savings. Just wondering what this crowd would say.

 

[LEYKIS101]

Bill,

I think that's the norm anymore, seems like very few save for unexpected expenses. I've read employees should have a MINIMUM 2 months salary saved in case of firing, layoff, injury etc.

 

[truthteller]

I think you have to consider the age of a person when asking that question. You can't expect someone just out of college to have savings that would cover a year of expenses.

For me, I would be able to survive 2-3 years without going into debt.

 

[phdinsports]

Bill,

I think that's the norm anymore, seems like very few save for unexpected expenses. I've read employees should have a MINIMUM 2 months salary saved in case of firing, layoff, injury etc.

Thought it was 6 months, good job truthteller!!!

 

[Dante]

no worries here I would just make the wife work OT at her job to cover:smoker2:

 

[Woody0]

I think it's just another reflection of the amount of consumer debt. Even when I was young with 2 kids I had enough to last to the end of the month and a stable job.

 

[LEYKIS101]

no worries here I would just make the wife work OT at her job to cover:smoker2:

I think you have the idea.

:drink:

 

[oldmanTED]

WildBill:

Unfortunately, the United States ranks fairly low in per capita savings of industrialized countries. As much as we may be the land of opportunity, we are also, a country heavily in debt both publicly and privately. Sorry to say, but living week to week and paycheck to paycheck is more the norm then not. Planning for future emergencies and long term planning to meet financial and medical needs for later years doesn't nearly get the attention it should until later. We are a me nation that lives in the now. The price is paid in the future for most.

 

[sherman]

Uncle Bob says to keep FUCK YOU money (he says minimum 2 months) in case you need to tell your boss FUCK YOU!

 

[wolfie_cr]

its hard to realize that 90% people live looking forward for their next paycheck to pay their current minimum credit card payments

I would do exactly what Dante proposed and cancel quite a few things I don't need and finish reading all the books I have and havent got to finish and go on a strict diet avoiding all sorts of fats (expensive stuff)

I think I could survive like 2 years.........going into my "single guy , tico way of living" problem is , its not that easy to do that

 

[wolfie_cr]

"Amazed to find well paid coworkers with responses like "until the end of the week maybe" or some admitting they have $0 in emergency savings. Just wondering what this crowd would say."

I was equally shocked to discover people that has

NO health insurance
NO life insurance
NO reserves
Credit card debt of over 60k! (wtf.....)

so one DAY without a paycheck and the card castle collapses

 

[OMNIVOROUS FROG]

I started up quite a discussion at work today with a simple question:

If you got fired or laid off today with no severance beyond paying off your vacation days, how long could you financially survive without going into debt?

Amazed to find well paid coworkers with responses like "until the end of the week maybe" or some admitting they have $0 in emergency savings. Just wondering what this crowd would say.

This question is loaded, because the majority are already in debt, at this juncture. You do not go into debt, if you already are.

Ask a new question, how many of you actually have a positive net worth? How much of it is liquod? There is where you can get most Americans...

Best Wishes...OF:howdy:

 

[TheGeneral+]

Good topic Bill.

Most of my friends could not make it long if they were to lose a job, but most of my friends are already in debt as well.

 

[chalkeater]

I've been unemployed since January 2004. Am I proud of it? No. My company was bought out and I knew I would be losing my job. The new "upper management" was making it a living hell for any of us sales employees to achieve our goals. I decided to leave the company.

I've been trying ever since to get into pharmaceutical, medical or surgical sales, but the door has not opened for me.

Luckily my wife works, although she doesn't make much money, but my other source of income, I have been doing very well with it.

CK

 

[WildBill]

The whole thing started when I asked my neighbor at work what is the maximum I can put into the 401k plan, since I am not qualified to be in it for a few more months. She looked at me like I asked a dirty question, snapping back that she struggled to get 6% into it, just to get the 3% match. Now this woman has a pretty good job, must make at least close to what I make and I know because she bought her house almost 3 years ago her mortgage payments must be half what I pay. I told her it was a serious question, that since I would be ineligible for a few months I would have a hard time maxing out to the 14k allowed unless they let me set aside a huge percentage. Another guy chimed in since he had a kid he had to drop making contributions all together. Next thing you know people are looking at me like I insulted them telling them I used to put in 22% at my last job. "Wait until you have kids" was the common refrain, but I think to myself maybe they are the most vulnerable of all to this lack of savings. I am in better shape to a degree because I do write for the Rx and I have come close to my goal of making sure my expenses aren't much over what modest amount I do make from the Rx. Call me cheap, I call it living below my means.

For myself I figure if I lost both my regular job and my writing gig, I have enough saved for about 15 months. Further I have an equity line of credit lined up that could cover me about a year if it got that far. Maybe its a bit more than I really would need, but I would never go without having 6 months covered, just my personal taste. Then again everything I wager on has probably an outsized bankroll as well.

I truly believe life is best lived with plenty of peace of mind and it is best avoided living on a financial edge.

 

[chalkeater]

When I was employed, I allowed 15 % of my paycheck to be invested into my 401K every two weeks. Did I miss it? No, because I did this from day one.

You don't miss what you don't have.

CK

 

[chalkeater]

Also, like you WildBill, I have a HELOC available to me for just under 70K, which available in the event of an emergency. The interest rate isn't too bad, right at 5.25 %, which is variable, but locked in at this rate for the 1st year.

CK

 

[Aquatic]

In "BUSHWORLD" many people that aren't RNC contributors are broke within a month or less since those jobs at Wallmart and fast food chains, that keep those job figures in check each quarter for Wall Street, don't lend themselves to much savings. The savings % of pay now goes to the gas pump or utilities bills and that average American $400 Bush tax cut savings was gone within a month at the pump. Nice concept to get the money out of government funding via a tax cut and then divert it back through the oil coffers with record prices.