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>You should save until you have at least two years It is a little late to be doing this. I have pretty bare-bones expenses (Fine, my apartment is 40% of my in

>You should save until you have at least two years It is a little late to be doing this. I have pretty bare-bones expenses (Fine, my apartment is 40% of my income) but I would struggle to save 24-months of expenses any time soon. Unless you are making like $250k and living on $50k, I would say it is a little late to be stocking up to survive a downturn. I could do it if given probably 5 years, but I couldn't pull that off in 1 year.

k-mcgrady 10y ago
If you're renting, in a downturn, wouldn't it be very easy to move to a cheaper apartment and reduce that expense significantly?
- madelinecameron 10y ago
  Definitely. The "worst case" is just walk away from my lease and move in with in-laws.
caseysoftware 10y ago
It is never too late to start stocking up. Yes, the sooner you make the changes, the better off you will be. Just like getting healthier. A huge part of it is mindset. If you are striving to build 24 months of savings, you'll have to think about income and expenses and figure out which ones matter, which ones can go away, and how to improve them in general. There may not be a single silver bullet but there can be a lot of little things that will help in the long run.
- jazzyk 10y ago
  A lot of people pay way too much for cable, like $150/ month... Cut the wire, go OTA, if you must (free), and Netflix ($10/month)
  - seanp2k2 10y ago
    I really wonder how many people on HN seriously pay for cable. For me and many of my friends, we just have Internet and watch whatever we want whenever we want. I wouldn't watch cable if it was free. I wouldn't watch it for an hour a night if they paid me $100 a month to do so. The idea of paying $50+++ per month for what I consider to be an absolute waste of my time is crazy to me.
    - gorkemyurt 10y ago
      you don't like sports?
      - a_t48 10y ago
        MLB.TV isn't bad for baseball (might have to swing a VPN to get it to work for you, depending on if you live near your favorite team). Football is still overpriced as hell, though.
anexprogrammer 10y ago
Imagine really bad shit happened, your company went bust. You had to take a 30% (or 40%) pay cut. Could you survive? OK, now take that 30% and transfer it into a savings account before anything else. It doesn't exist. Your pay is what's left. Now budget expenses and life. Start living when you have a little insurance. Even six months buys some peace of mind. If you have a family you have to modify a little to ensure they can have a tolerable life meanwhile, and a little time out etc. but you get the idea. If you keep this idea going even in good times you'll be buying rental properties with it eventually.
- madelinecameron 10y ago
  Yeah... like I like this idea. I just don't know how sustainable it is. I am decent with money (Almost 0 debt, almost 1 month of expenses, etc) but I don't really feel like living in self-inflicted poverty. I have done it before and I know I can do it, but I don't see the point in inflicting abject poverty on myself just so I am vaguely protected. I understand what you are coming from, but really isn't for me. (Maybe when my income grows / I don't live in NYC...)
  - sn9 10y ago
    You're talking about the difference between perceived poverty relative to your previous lifestyle versus actual poverty where you're living paycheck to paycheck because you didn't have a sufficiently large paycheck. Every generation seems to have a big economic shock it has to weather through (or two or three). I think living on a percentage of your income with 6-12 months' salary in the bank is the only smart thing to do when you're able to do it.
  - driverdan 10y ago
    If you only have one month worth of expenses saved you are terrible with money. Planning for your financial future is one of the most important things you can do. If you're in the tech industry you can afford to save 30%+ of your income. We have a it a lot better than other sectors and make good money. Take a small pay cut now for a large payout in the future. Don't sacrifice your future for a little fun now.
vehementi 10y ago
> It is a little late to be doing this. They meant that you should have been doing that for years

k-mcgrady 10y ago

If you're renting, in a downturn, wouldn't it be very easy to move to a cheaper apartment and reduce that expense significantly?

madelinecameron 10y ago
Definitely. The "worst case" is just walk away from my lease and move in with in-laws.

caseysoftware 10y ago

It is never too late to start stocking up. Yes, the sooner you make the changes, the better off you will be. Just like getting healthier. A huge part of it is mindset. If you are striving to build 24 months of savings, you'll have to think about income and expenses and figure out which ones matter, which ones can go away, and how to improve them in general. There may not be a single silver bullet but there can be a lot of little things that will help in the long run.

jazzyk 10y ago
A lot of people pay way too much for cable, like $150/ month... Cut the wire, go OTA, if you must (free), and Netflix ($10/month)
- seanp2k2 10y ago
  I really wonder how many people on HN seriously pay for cable. For me and many of my friends, we just have Internet and watch whatever we want whenever we want. I wouldn't watch cable if it was free. I wouldn't watch it for an hour a night if they paid me $100 a month to do so. The idea of paying $50+++ per month for what I consider to be an absolute waste of my time is crazy to me.
  - gorkemyurt 10y ago
    you don't like sports?
    - a_t48 10y ago
      MLB.TV isn't bad for baseball (might have to swing a VPN to get it to work for you, depending on if you live near your favorite team). Football is still overpriced as hell, though.

anexprogrammer 10y ago

Imagine really bad shit happened, your company went bust. You had to take a 30% (or 40%) pay cut. Could you survive? OK, now take that 30% and transfer it into a savings account before anything else. It doesn't exist. Your pay is what's left. Now budget expenses and life. Start living when you have a little insurance. Even six months buys some peace of mind. If you have a family you have to modify a little to ensure they can have a tolerable life meanwhile, and a little time out etc. but you get the idea. If you keep this idea going even in good times you'll be buying rental properties with it eventually.

madelinecameron 10y ago
Yeah... like I like this idea. I just don't know how sustainable it is. I am decent with money (Almost 0 debt, almost 1 month of expenses, etc) but I don't really feel like living in self-inflicted poverty. I have done it before and I know I can do it, but I don't see the point in inflicting abject poverty on myself just so I am vaguely protected. I understand what you are coming from, but really isn't for me. (Maybe when my income grows / I don't live in NYC...)
- sn9 10y ago
  You're talking about the difference between perceived poverty relative to your previous lifestyle versus actual poverty where you're living paycheck to paycheck because you didn't have a sufficiently large paycheck. Every generation seems to have a big economic shock it has to weather through (or two or three). I think living on a percentage of your income with 6-12 months' salary in the bank is the only smart thing to do when you're able to do it.
- driverdan 10y ago
  If you only have one month worth of expenses saved you are terrible with money. Planning for your financial future is one of the most important things you can do. If you're in the tech industry you can afford to save 30%+ of your income. We have a it a lot better than other sectors and make good money. Take a small pay cut now for a large payout in the future. Don't sacrifice your future for a little fun now.

vehementi 10y ago

> It is a little late to be doing this. They meant that you should have been doing that for years