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If you work in tech chances are you have a high six figure salary and a large line of credit. You may even have a passive income source via rental income, stock
by andreilys 5y ago
If you work in tech chances are you have a high six figure salary and a large line of credit. You may even have a passive income source via rental income, stock dividends or side projects.
It doesn’t really make sense to have 6 months of expenses which lose value in a bank account vs. earning you money in the market.
If something were to happen you can usually pay it off with your pay cheque/passive income source or use a credit card to bridge you over.
- maxerickson 5y agoOn the other hand, the foregone earnings will not be huge relative to assets and income. Especially if you make the 6 months as necessary expenses vs typical normal expenses.
- JaimeThompson 5y agoThat mirrors what a lot of companies turned just in time manufacturing into and it really didn't hold up well over the past few years due to shocks in the system.
- indemnity 5y agoMaybe I’m old fashioned, but despite having a paid off HELOC that can cover 42 months of current monthly expenditures, and several zero balance credit cards… I don’t want to be relying on that if I lose my job. Lines of credit can be taken away, and usually at the worst time. So I’m happy to forego some returns on a moderate sized emergency fund in exchange for peace of mind.
- yardie 5y agoOutside of SV and NYC I can assure you the majority of tech is not high six figures. Most are barely high five figures.