Also, maxing out the $23.5K of the 401K retirement account.
Easy, have a side hustle selling drugs and pay everything cash.
Comment on I'm working on it, ok?
Entropy@lemmy.blahaj.zone 8 months ago
So if I want to accomplish this in a year I should be putting away half of every paycheck? Between rent, bills and groceries, whonyhe fuck can afford that?
No_Ones_Slick_Like_Gaston@lemmy.world 8 months ago
FlyingSquid@lemmy.world 8 months ago
“Just start a small business.”
That’s what I keep hearing from Republicans.
I actually owned a small business, which is why I understand what bullshit advice that is.
FireTower@lemmy.world 8 months ago
Just stop eating and photosynthesize like the rest of us responsible adults
Asafum@feddit.nl 8 months ago
Psh look at this sun breather. I just de-evolved myself by my bootstraps and float near a hydrothermal vent like a real adult
PatMustard@feddit.uk 8 months ago
People with less expenses, people with a higher salary, people who live in a less expensive area, etc, etc.
scoobford@lemmy.zip 8 months ago
6 months of expenses, not income.
Most people can. I make $40k per year in a major city, and I’m getting there.
FlyingSquid@lemmy.world 8 months ago
Considering rent or mortgages alone takes a vast percentage of many people’s paychecks before you factor in things like student loan and medical debts, most people cannot.
And I have no idea how you can even live on $40k a year in a major city unless you’re eating beans and rice with every meal and living in a hovel.
scoobford@lemmy.zip 8 months ago
Median income here is in the mid $60’s. I’m definitely poor, but I do save some money.
I live alone, and cook basically all my meals. Eating out and processed foods from a grocery store are both too pricey for more than once or twice a month. Mostly buy meat and fresh produce because carbs tend to give me stomach issues in large amounts.
Unfortunately, I am disabled. So while I have insurance, I cannot afford to see a specialist as regularly as I should. To be fair, this is out of network and like $700/month on top of my existing premiums and HSA contributions.
If nothing too crazy happens in the next year, I’ll be able to change jobs and get my medical care back in network, meaning I don’t need to ration doctor’s visits for my disability. If nothing happens in 2 or 3, I’ll have my emergency savings in a very good place. If nothing happens in 5, I might pay cash for my next car.
After that, fuck it. I’ll be financially stable, I’ll have another decade before I have a planned major expense like a car, and home ownership is a pipe dream here anyways. Last I looked, they start around $400k, which would mean coming up with about $180,000 for my down payment lol
FlyingSquid@lemmy.world 8 months ago
Sorry that you have to go through all of that. I’m dealing with a mystery illness right now which involves food, so I understand.
nouben@lemmy.ml 8 months ago
Joke’s on you, i spend all my income
Lowpast@lemmy.world 8 months ago
Most people don’t accomplish 6 months emergency fund in 1 year, no. It’s a marathon, not a sprint.
dream_weasel@sh.itjust.works 8 months ago
I make plenty of money and it took 15 years for me to get my emergency fund up to scratch.
PriorityMotif@lemmy.world 8 months ago
It’s supposed to be living expenses, not salary.
neptune@dmv.social 8 months ago
You can’t accomplish it in a year.
snooggums@midwest.social 8 months ago
Most people can’t afford it in a year.
People who inherited a sizeable amount of money or are in the top 10% of earners are able to do so.
qooqie@lemmy.world 8 months ago
Yeah this is a 5+ year goal right?
RagnarokOnline@programming.dev 8 months ago
I world say it’s getting to 3-months first, then paying down debt with high-interest rates, then trying for 6-months of expenses. Could easily take a decade, but the idea is that once you have that 6-months saved, it’s less likely that you’ll re-enter into high-interest debt in the first place.
NewNewAccount@lemmy.world 8 months ago
Saving 3 months in an emergency fund while accruing high interest debt seems crazy to me.
Most people, especially those not very knowledgeable about personal finance, really should follow the Dave Ramsey baby steps.
SkippingRelax@lemmy.world 8 months ago
How long is a piece of string?
Depends on how much you earn, what are your expenses, and how much you have saved already.
scoobford@lemmy.zip 8 months ago
It’s a however long it takes goal. I’m hoping to have it done in 2, although 3 and change is more realistic.
Unfortunately, if you can’t afford to live with financial security, you can’t afford to live. I haven’t had an entertainment budget in over a year, and food has basically been what’s on sale at the grocery store and maybe a gyro every month.
fadedmaster@sh.itjust.works 8 months ago
I wish you the best of luck. It isn’t easy. Getting out of debt and having a fully funded emergency fund is a great feeling.
scoobford@lemmy.zip 8 months ago
You don’t have to. Start early, save aggressively, get it done before you worry about upgrading your lifestyle.