3 ms·
> 25 years and 11 months > You need to be in a position financially to live several years without a paycheck because it could take years for the job market dyn
by carsongross 11y ago
> 25 years and 11 months
> You need to be in a position financially to live several years without a paycheck because it could take years for the job market dynamics to change and become more favourable for the employee.
How insane is that?
Add to the fact that cost of living is so high now in the Bay Area, and safe returns are so low, that building up any sort of true emergency savings is difficult... Insane.
- nostrademons 11y agoSave 20% of your income for 25 years and you'll have 5 years living expenses saved up. That's assuming zero returns on capital, beyond inflation. It just means assuming that your $125K/year salary is actually $100K, or your $100K/year salary is actually $80K. There are people - even in the Bay Area - who live on less than half of that.
- mattmanser 11y agoYou've forgotten that you only spend 80% of your salary, so you'd have 6.25 years.
- naveen99 11y agoDo you mean 20% excluding retirement programs ? Remember to do that after maximizing contributions to your 401k, ira, etc... At layoff time you might be able to extract some money without penalty and with minimal taxes.
- hwstar 11y agoI have to admit I'm not in the Bay Area, but San Diego, CA. It would be much harder to do in the Bay Area, but not impossible. In San Diego, the tech job market goes through cycles which crater deeper than the Bay Area during bad times. We really had bad times back in the early 90's when General Dynamics left. We are now facing the same thing with Qualcomm layoffs due to happen next month.