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The difference between multiple months/years of emergency savings and retirement savings is intent (and timeline). I could afford to take months or years off,
by thenewwazoo 3y ago
The difference between multiple months/years of emergency savings and retirement savings is intent (and timeline).
I could afford to take months or years off, but I’d rather let that money grow in an interest-bearing account for decades and spend it later.
- goalonetwo 3y agoSure, but in any case having savings (even retirement savings) allows you to not "frantically" look for a job and be slightly more selective.
- johnnyanmac 3y agoIt's relative, but having to dig into your 401k isn't an attractive alternative, one I'd only consider in truly dire straits. You are capped in how much you can put in a year so it's not like a savings account you can aggressively make up for after getting hired. I'd much rather resort to temp work than dig deeply into my future if I had a choice. If I could help it I'd rather invest in
- blackoil 3y agoIt is primarily psychological difference. I have 10 years of expense as savings. But that is tied in my retirement/emergency/child education plans. If I stop earning for 1 year, I'll be dipping in them which will create a pressure.