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We have all heard this, "Have SIX months of salary saved for a rainy day.". Okay...how do people do that? I am single, had kids, paid rent and car payment. There were some days I was lucky to get food on the table, forget about saving money. I did have an "extreme emergency fund", I put away $25 a pay period. A long way from six months of salary.
Is this realistic for a single person, or single parent, who pays rent and car payment to be able to do?
And, I drove a used Honda CRV, lived in a small apartment. Right there, was $1000, when you add in electric, car insurance, other expenses...do these people make over $100,000 a year?
We have all heard this, "Have SIX months of salary saved for a rainy day.". Okay...how do people do that? I am single, had kids, paid rent and car payment. There were some days I was lucky to get food on the table, forget about saving money. I did have an "extreme emergency fund", I put away $25 a pay period. A long way from six months of salary.
Is this realistic for a single person, or single parent, who pays rent and car payment to be able to do?
And, I drove a used Honda CRV, lived in a small apartment. Right there, was $1000, when you add in electric, car insurance, other expenses...do these people make over $100,000 a year?
Do you have a TV?
Pay for Cable? A Cell phone? Drive a more than $2,000 car? Etc
I lived VERY poor till I had built up an amount of money that allowed me options.
Americans have their priorities screwed up in general.
We have all heard this, "Have SIX months of salary saved for a rainy day.".
When I was first advised about this (by a WW2 vet crony of my Dad) he used the term F-U Money.
There will come a day when you have just had enough and will need to say F-U to whoever
and then go on with your life or conversely when someone will be saying it to you. I was 18.
Quote:
Okay...how do people do that?
I am single, had kids, paid rent and car payment.
Well, it won't get any easier after you get married or have kids.
You're paying too much for rent or clothes or cars or dates if you aren't putting it away steadily.
Or you need a second job.
The thing to remember is that after the FU money is set aside..
there will another twenty things just as important to set money aside for.
It's tough, but it's worth doing. We've burned through all of our emergency savings (for valid reasons), and once we are back on our feet I can tell you that I won't be sleeping sound at night until we've built up at LEAST six months savings. I realize that it might take a very long time, but it's a worthwhile goal to work towards. Unfortunately I can well imagine that it's tougher for a single parent with dependent kids, but it's even MORE important for those families to have that safety net. If you don't have sufficient savings to tide you over in case of an emergency you are living on the edge. It's worth it to take drastic steps if need be to get those savings in place.
It's tough, but it's worth doing. We've burned through all of our emergency savings (for valid reasons), and once we are back on our feet I can tell you that I won't be sleeping sound at night until we've built up at LEAST six months savings. I realize that it might take a very long time, but it's a worthwhile goal to work towards. Unfortunately I can well imagine that it's tougher for a single parent with dependent kids, but it's even MORE important for those families to have that safety net. If you don't have sufficient savings to tide you over in case of an emergency you are living on the edge. It's worth it to take drastic steps if need be to get those savings in place.
We are setting up an emergency find with our income taxes. $500. Not a lot, but we don't make a lot so it isn't sustainable to have a 5k emergency fund.
Just try and save as much as possible into a "rainy day fund". Don't touch it if you have to. Don't get stressed out if it isn't 6 months of expenses. Just save what you can. It would take over a year if not 2 years to save 6 months of expenses for us and we live frugally for the most part. Don't spend 2 years or a year of no fun or spending any extra money just to save up for this "rainy day" type of event. Experience life, just be ready and prepared and try your hardest to be ready for the bad experiences. If it is only 3 months....at least its better than nothing.
If it's any comfort to you, it's generally said to have 6 months living expenses saved, not salary.
Yes, though, I've seen some recommendations that motivate folks to go beyond "three to six months".
"A lot of experts now recommend that everyone keep nine months to one year of income in an emergency account in case of job loss," says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling in Washington, D.C.
Philip Brewer of Wise Bread recommends a higher number of months "if you have any reason to worry that you might have trouble finding another job--if you lack credentials, for example, or your current employer is the only game in town, or you're working in a declining field."
Well finances are spend less ,earn more and i will add one more part , eventually invest it better so the pennies you do save don't stay pennies.
Doesn't matter how you do it. Work another job,get a better job,train for a better job.
When i first started my adult life i had 3 jobs i was juggling. Bit the bullet,took loans from a trade school, learned a trade and worked my way through jobs to get to the level i am today.
for some there is no hope, they plan poorly,have kids with no thought of finances and have no motivation to go any further then from one low paying job to another and complain.
i am not saying that is the op's situation but it is a very common situation.
given the exact same set of circumstances some folks will always come out on top and find a way.
others are just the complainers and never find a way out of the very same situations..
that is just how life is and life never plays fair,
Last edited by mathjak107; 01-20-2013 at 05:35 AM..
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