4 ms·
It's easy to say crap like have 6 months of savings. My partner was laid off during an industry-wide crash. She was unemployed for a year, and it took her 7 y
by x0x0 8y ago
It's easy to say crap like have 6 months of savings. My partner was laid off during an industry-wide crash. She was unemployed for a year, and it took her 7 years (a complete career change) to regain anything like her former earnings. Very few people have the savings to be out of work, or earning 1/4 of what they used to, for years on end.
Meanwhile, you've accumulated a life dependent on a certain income level. That's true even if you live within your means; going from making $200k a year to $40k a year requires a different apartment, a different (or no) car, a different gym, etc etc.
People on here should ask folks who lived through the dot com crash in sfbay what that time was like.
- throes_death 8y ago> a different gym Perhaps no gym?
- deleted 8y ago[deleted]
- nicolas_t 8y agoThis is why it's very important not to let your spendings increase with your income... As my income increased, I went from saving 30% of my income to saving 80% of my income... I did increase my spendings by a bit but not nearly as much as my income increased. The other important thing to have is a good insurance. The main reason I'm doing this is that I want to make sure I can retire at 40 but working toward that goal is a great way to protect oneself in case of setbacks.