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That's still not the same thing. Failing to save is partially because people think jobs are stable. That's unrelated to knowing you will need to get a job in 5
by hueving 9y ago
That's still not the same thing. Failing to save is partially because people think jobs are stable. That's unrelated to knowing you will need to get a job in 5 years after your extended basic income vacation.
- godelski 9y agoSaving $1k has nothing to do with your job being stable or not. That's a safety net for life. It is the basic emergency fund. Cars break down, people get sick, life happens. So to extend your premise, "Failing to save is partially because people think expenses are stable." Which is clearly poor planning. We know humans are bad about estimating risk. I'm not sure why this is such a controversial idea. What I'm saying is that if even those above the 50% income level are bad about saving a basic emergency fund, I don't expect those receiving this kind of grant to be any better at preparing emergencies. I do think they will be able to handle them better, but I do not expect them to plan better.