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It makes me wonder what kind of safety nets are available to people who can afford to think like this. I wish I was able to do this.

by sali0 6y ago

graeme 6y ago
Anyone who lives below their means can do this. Not everyone can do that, but a substantial portion of people reading this comment on hacker news can do that. If someone earns $50,000, spends $40,000, in four years they will have a year’s salary saved up. With that in the bank you have a fair margin of safety. Most people don’t need a year to get a job, and can also reduce expenses in such a period. By doing so, you effectively buy freedom. I’m guessing you wrote this because you are not able to have such a margin of savings. But I’m leaving this comment for the many readers who could do so, but have not arranged their lives such that they have it.
- zimpenfish 6y ago
  > in four years they will have a year’s salary saved up. That assumes no unexpected expenditure though? Any medical emergency (and even a lot of non-emergencies) in the US (from what I've seen) would blow those savings quickly. Also car problems, child problems, storm damaging the house/apartment, any number of things can swallow those savings quickly and you're back to square one.
  - graeme 6y ago
    Oh right. I’m Canadian, so I forget how tied to their jobs Americans are. Though the non medical ones you mention can generally be handled by insurance. That usually is not tied to work. If you have a year’s savings you can generally afford insurance.
    - lotsofpulp 6y ago
      Americans aren’t tied to their jobs because of health insurance. Anyone can purchase it on healthcare.gov. They’re tied to their jobs because healthcare costs so much. It’s unaffordable to pay $400+ per person per month plus up to $8k for out of pocket max which resets every calendar year ($16k for family) without having a job. The $400 per person is for a young person. It goes up to $1,000 per month as you get into 50s/60s. So if you’re being prudent and factoring in the probability of not having income in your 50s/60s (age discrimination, disability, obviated from automation, outsourced), then you also need to save to plan to pay at least $12k a year in today’s money plus out of pocket maximum.
    - zimpenfish 6y ago
      > so I forget how tied to their jobs Americans are. That's another thing - aren't most of them in at-will employment? Meaning they can be let go with almost no reason with no notice at any time. That's also going to put a dint in the savings.
  - refurb 6y ago
    Just because some people might have an unexpected expenditure doesn't mean the OP's comment isn't true. Something can always go wrong, but it doesn't happen to everyone.
- foldr 6y ago
  You also have to factor in the effect on your future earnings of looking for a job while not having a job. You're bound to get lower offers (unless you can credibly give the impression of someone who's so wealthy that they never need to get a job). So even if you have a year's salary saved up and find another job within months, it could still be a big financial hit in the long term.
- webmaven 6y ago
  Are you assuming $50k take-home pay?
ummonk 6y ago
This is fundamentally why I think a UBI is a good policy. It will empower everyone to engage to take risks and engage in entrepreneurialism.
ChuckMcM 6y ago
Consider asking the flip side of this question, "I wonder what kind of safety net I could create that would allow me to think like this?" I can recommend the web site Mr Money Mustache[1] for some ideas along that line. [1] https://www.mrmoneymustache.com/ https://www.mrmoneymustache.com/

It makes me wonder what kind of safety nets are available to people who can afford to think like this. I wish I was able to do this.

by sali0 6y ago

It makes me wonder what kind of safety nets are available to people who can afford to think like this. I wish I was able to do this.

graeme 6y ago

Anyone who lives below their means can do this. Not everyone can do that, but a substantial portion of people reading this comment on hacker news can do that. If someone earns $50,000, spends $40,000, in four years they will have a year’s salary saved up. With that in the bank you have a fair margin of safety. Most people don’t need a year to get a job, and can also reduce expenses in such a period. By doing so, you effectively buy freedom. I’m guessing you wrote this because you are not able to have such a margin of savings. But I’m leaving this comment for the many readers who could do so, but have not arranged their lives such that they have it.

zimpenfish 6y ago
> in four years they will have a year’s salary saved up. That assumes no unexpected expenditure though? Any medical emergency (and even a lot of non-emergencies) in the US (from what I've seen) would blow those savings quickly. Also car problems, child problems, storm damaging the house/apartment, any number of things can swallow those savings quickly and you're back to square one.
- graeme 6y ago
  Oh right. I’m Canadian, so I forget how tied to their jobs Americans are. Though the non medical ones you mention can generally be handled by insurance. That usually is not tied to work. If you have a year’s savings you can generally afford insurance.
  - lotsofpulp 6y ago
    Americans aren’t tied to their jobs because of health insurance. Anyone can purchase it on healthcare.gov. They’re tied to their jobs because healthcare costs so much. It’s unaffordable to pay $400+ per person per month plus up to $8k for out of pocket max which resets every calendar year ($16k for family) without having a job. The $400 per person is for a young person. It goes up to $1,000 per month as you get into 50s/60s. So if you’re being prudent and factoring in the probability of not having income in your 50s/60s (age discrimination, disability, obviated from automation, outsourced), then you also need to save to plan to pay at least $12k a year in today’s money plus out of pocket maximum.
  - zimpenfish 6y ago
    > so I forget how tied to their jobs Americans are. That's another thing - aren't most of them in at-will employment? Meaning they can be let go with almost no reason with no notice at any time. That's also going to put a dint in the savings.
- refurb 6y ago
  Just because some people might have an unexpected expenditure doesn't mean the OP's comment isn't true. Something can always go wrong, but it doesn't happen to everyone.
foldr 6y ago
You also have to factor in the effect on your future earnings of looking for a job while not having a job. You're bound to get lower offers (unless you can credibly give the impression of someone who's so wealthy that they never need to get a job). So even if you have a year's salary saved up and find another job within months, it could still be a big financial hit in the long term.
webmaven 6y ago
Are you assuming $50k take-home pay?

ummonk 6y ago

This is fundamentally why I think a UBI is a good policy. It will empower everyone to engage to take risks and engage in entrepreneurialism.

ChuckMcM 6y ago

Consider asking the flip side of this question, "I wonder what kind of safety net I could create that would allow me to think like this?" I can recommend the web site Mr Money Mustache[1] for some ideas along that line. [1] https://www.mrmoneymustache.com/ https://www.mrmoneymustache.com/