Most Americans can't afford a $1,000 emergency expense

Chances are though that you're not going to have a ballin' job right out of college. Sure, they sell you on the idea that you're going to make 100k right out of college, but I've got news for ya....that's not the reality of the situation in today's economic climate (for most people). We by no means live a lavish lifestyle...definitely middle class america...but shit adds up quick man. Don't get me wrong, we don't live paycheck to paycheck and have a rainy day fund capable of sustaining several months, but a year's worth of savings isn't even close to reality. I don't know anyone in their late 20's who isn't wealthy by birth that has that kind of savings. College is expensive. Grad school is expensive. Life is expensive. Even by mid-class standards.
 
I'm probably older than you, I didn't really want to make it personal (because I'm pretty much an angel), but yes I had 50k in savings between me and my so within a few years of school (we both continue to pay student loans, I actually sent my FIL money last week so no, not from wealthy families). The point is, that a responsible person should have enough money to float themselves when running into unexpected things in life. You don't have to... like I said, go on welfare if you want, but you run the risk of losing a lot of assets. A young person isn't going to have a lot of money, so they shouldn't have a lot of debt. The debt to income ratio is what really matters, how long (or well) you want to survive without stealing from the rest of us is up to you.
 
im making 75k 6 months out of college because i picked a useable major, busted my ass in school, and then out of it trying to find a job. All the connections i made, and interviews i got were because i pounded the pavement, not because i had friends or family in the right places. i have very little in loans because i hunted down all sorts of scholarships, and then had a few side jobs in college. I plan on having the company i work for now pay for my MS.

in 6 years, i will be shocked if i dont have atleast 100k in investments.

My living expenses in college were less than 12k/year, and i could cut a lot out of that if times got tough. Life is very expensive, but trying to keep up with the jones' and buying nice new shit makes it way more expensive.

 
Gotta ask, what is small by your standards? For a relationship? Because I know housing is much cheaper in many parts of the states than around here.
 
I won't argue that a person should be able to float themselves when the unexpected arises, but I think a year's worth of expenses is unrealistic. To have 50k sitting in a savings account earning little interest while you continue to accrue interest on your student loans & mortgage isn't how I'd invest my money. If I did that, I'd end up spending tens of thousands of dollars in additional interest expense by not paying them off sooner than the due date.

And to answer your prior question - we actually put more than 20% down on our house and pay several hundred dollars more than the minimum payment each month. This has us slated to not only pay the loans off several years early, but we will also save close to 30k in interest expense over the course of the loan.

I'll also add that it's certainly not personal - not for me at least. Just friendly discussion.

 
You're wrong. my dad lost his job at the beginning of the recession, we had savings for a year. It took him 8 months to get another job set up and thankfully we didn't lose the house in that time. It takes different times for different professions but organic chemistry research positions aren't exactly that common since many of the companies in this county decided in the 90's they didn't need to research and became outcompeted by japan and china, leading to lower profits and downsizing production. meaning DHEY TOOK OUR JERBS!

But if you seriously think that you only need 3 months supply for an emergency you have definitely only considered optimum circumstances. When you are laid off you lose your benefits, so your expenses actually rise. The time it takes to find a new job varies, and if you are supporting anyone you have to plan for possible medical bills.

that being said I am living off of school loans and wouldn't be able to come up with 1000$ extra anyways.
 
I'm from Finland and were filthy socialists, so I don't have to worry about losing any benefits, I get benefits if all goes to hell and survive to rise again.
 
man-with-gun-to-his-head.jpg


mfw this thread
 
by filthy socialist you mean that you live in a country where the governing wealthy actually give a shit about everybody else. and yes, i am jelly.
 
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