If you were going to quit a job, how much money would you save up? (self employed, debt)

[hughbay]

Why not just look for another job instead of quitting outright?

[Themanwithnoname]

Originally Posted by Kees

Right now I have about 8 months expenses saved up.... you'd be surprised how many don't though.

Every time I go to an ATM machine I always see receipts laying around on the ground, and I always pick them up (don't litter) and look... balances I see are 99% of the time less than $100.

The receipt I saw yesterday had a $6.03 checking account balance. I wonder if these people have huge 401k accounts?

I zero out my checking account every month (today I will be... The first) and spend out of it thought the month, after taking out savings.

Yesterday if I had left a recept somewhere people could have seen less than $100 in my checking.
They wouldn't of seen the ~$65k in the savings account!


It's not always a good yardstick.

[freedom125]

Originally Posted by hughbay

Why not just look for another job instead of quitting outright?

Lol. You guys are funny. Of course the person in this hypothetical scenario would be looking for other jobs in the meantime. But what if the work environment was so caustic that if no other decent job came around, the only way to save their sanity would be to quit their current job as soon as they saved up enough? That's the question.

[Kees]

Originally Posted by Rubi3

Generally, someone who already has a job, but, applying for another, is more likely to be hired than someone out-of-work.

It's funny how that works. When I changed jobs in December I was hired the same day... Had I been unemployed I wouldn't have heard anything for weeks.

Originally Posted by Themanwithnoname

It's not always a good yardstick.

Yeah I keep my checking and savings accounts fairly balanced... Not that it really matters with one touch balance transfers via smartphone.

[Broncos Quarterback]

Personally, 2 years of expenses. It's a tough economy and I'm not that sanguine about my employment prospects were I to quit w/o another gig lined up.

[ccm123]

One year, for most people, or 18 months, to be very safe.

[statisticsnerd]

Originally Posted by Kees

Right now I have about 8 months expenses saved up.... you'd be surprised how many don't though.

Every time I go to an ATM machine I always see receipts laying around on the ground, and I always pick them up (don't litter) and look... balances I see are 99% of the time less than $100.

The receipt I saw yesterday had a $6.03 checking account balance. I wonder if these people have huge 401k accounts?

I currently have around $100 in my checking account and $12 in my savings account.... and well, I'll just say I have a lot more than that in my brokerage account.

Only an idiot would keep more than a few hundred dollars in a bank account nowadays. Interest rates on savings/checking accounts aren't anywhere near what inflation is, so you are actually losing money by keeping it in the bank. Meanwhile, there are plenty of relatively safe stocks that pay 6%-10% in dividends. Even if the share price drops, you are still collecting those fat dividend payments.

[Marlin84]

Originally Posted by statisticsnerd

I currently have around $100 in my checking account and $12 in my savings account.... and well, I'll just say I have a lot more than that in my brokerage account.

Only an idiot would keep more than a few hundred dollars in a bank account nowadays. Interest rates on savings/checking accounts aren't anywhere near what inflation is, so you are actually losing money by keeping it in the bank. Meanwhile, there are plenty of relatively safe stocks that pay 6%-10% in dividends. Even if the share price drops, you are still collecting those fat dividend payments.

Not always the smartest thing- if you need cash on hand it's smart to have more in a savings account- otherwise you could be forced to sell after a huge drop, at which point a 6% dividend won't do you much good.

[bobtn]

Two years of living expenses, minimum.

[manderly6]

Originally Posted by statisticsnerd

I currently have around $100 in my checking account and $12 in my savings account.... and well, I'll just say I have a lot more than that in my brokerage account.

Only an idiot would keep more than a few hundred dollars in a bank account nowadays. Interest rates on savings/checking accounts aren't anywhere near what inflation is, so you are actually losing money by keeping it in the bank. Meanwhile, there are plenty of relatively safe stocks that pay 6%-10% in dividends. Even if the share price drops, you are still collecting those fat dividend payments.

Only an idiot would tell people to only keep a few hundred dollars in their bank account.