3 ms·
Make it one year fund. Even better, have make one-year fund using peak expense month as a reference. The probability of not needing to use it fully is high, bu
by eb0la 9y ago
Make it one year fund.
Even better, have make one-year fund using peak expense month as a reference.
The probability of not needing to use it fully is high, but not 1.
- deleted 9y ago[deleted]
- closeparen 9y agoI think it would be silly to prepare for long-term unemployment in the Bay Area. I can move to within a few blocks of my parents' house and live almost the same lifestyle for ~50% of the cost, or a lifestyle befitting a long-term unemployed person for ~25% of the cost. Moving costs something, but would pay for itself very quickly. If I leave my furniture to the Craigslist scavengers, just the lease-break fee of 1 month's rent and a plane ticket with a couple of checked bags. At some point it becomes important to start the ball rolling on that sweet compound interest, pick up the preferential tax treatment (saving the max of $18k to a 401k would only cost me about $10k), pay down student debt early for a guaranteed 4.5% return, and (yes) travel and enjoy being young. Effectively, the fund I'm working on will be worth even more than a year, as long as I relocate.