5 ms·
Forget 3 months, the rule of thumb is 6 months for an emergency fund
by TAForObvReasons 9y ago
Forget 3 months, the rule of thumb is 6 months for an emergency fund
- cheschire 9y agoAnd twice your salary in a retirement fund by the age of 30, and three times your salary in retirement by 35. Basically quit your day job only if your side hustle is already making more money per month (not per hour) because odds are even making more per month is still going to result in not being able to survive much past 57. Side note, how many 57 year old indie game devs are there?
- alchemism 9y agoHow does the average American put tens of thousands of dollars into a retirement account within 5 years at a point in life where there is a morgage and/or children? That does not seem like conventional wisdom.
- NikolaeVarius 9y agoDon't do the mortgage and children.
- selectodude 9y agoIt's conventional wisdom in the same way that you're supposed to drink 8 glasses of water and eat 5 servings of vegetables ever day. The average American doesn't do what is "conventional wisdom".
- toast0 9y agoIt's doable if you get 5% annual growth on the balance, and put in 10% of salary. I ignored compounding, and assumed your income was flat.
- astockwell 9y agoThis is the conventional "textbook" wisdom. It is obviously desirable, but in real life completely impossible. And the gap between reality and this kind of "on-high" prescription is why so many people/families have no savings and have no real way to get out of their current situation.
- fourthark 9y agoThey don't.
- wolco 9y agoI would guess a few but they are retired from full time work.