Didn’t anyone notice during covid these “highly responsible business people” couldn’t make it a couple months without the “to big to fail” bailouts or free covid money?
I'm working on it, ok?
Submitted 1 year ago by ickplant@lemmy.world to memes@sopuli.xyz
https://lemmy.world/pictrs/image/5d4bd635-d653-4a52-b20b-630c7e87d3cd.png
Comments
Ultragigagigantic@lemmy.world 1 year ago
Etterra@lemmy.world 1 year ago
Months? Dune couldn’t make it 2 weeks. Just standard issue capitalist hypocrisy.
No_Ones_Slick_Like_Gaston@lemmy.world 1 year ago
The restaurant chain sweet tomatoes didn’t even last the two weeks. MFs where running on fumes.
Empricorn@feddit.nl 1 year ago
“too”. I’m sorry to be a Grammar Nazi, but I see this all the time here and I’m literally only trying to elucidate…
Fisherswamp@programming.dev 1 year ago
It isn’t 6 months salary, it is 6 months worth of expenses
chiliedogg@lemmy.world 1 year ago
So 9 month’s salary - got it.
MycelialMass@lemmy.world 1 year ago
Oooff bruh
Entropy@lemmy.blahaj.zone 1 year 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?
neptune@dmv.social 1 year ago
You can’t accomplish it in a year.
snooggums@midwest.social 1 year 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.
scoobford@lemmy.zip 1 year ago
You don’t have to. Start early, save aggressively, get it done before you worry about upgrading your lifestyle.
No_Ones_Slick_Like_Gaston@lemmy.world 1 year ago
Also, maxing out the $23.5K of the 401K retirement account.
Easy, have a side hustle selling drugs and pay everything cash.
FlyingSquid@lemmy.world 1 year 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 1 year ago
Just stop eating and photosynthesize like the rest of us responsible adults
Asafum@feddit.nl 1 year 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 1 year ago
People with less expenses, people with a higher salary, people who live in a less expensive area, etc, etc.
scoobford@lemmy.zip 1 year 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 1 year 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.
nouben@lemmy.ml 1 year ago
Joke’s on you, i spend all my income
Lowpast@lemmy.world 1 year 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 1 year ago
I make plenty of money and it took 15 years for me to get my emergency fund up to scratch.
PriorityMotif@lemmy.world 1 year ago
It’s supposed to be living expenses, not salary.
dharmacurious@slrpnk.net 1 year ago
I don’t have 6 hours of my salary in savings most days.
meekah@lemmy.world 1 year ago
Yeah, im glad if I manage to play off my debt by 30 lmao
dumbass@lemy.lol 1 year ago
I’m nearly there, I’m about -8 months away!
ickplant@lemmy.world 1 year ago
Great job, Dumbass!
Retrograde@lemmy.world 1 year ago
Are you LARPing as his dad
doingthestuff@lemmy.world 1 year ago
I had 9 months saved in 2020. I’m taking out loans this month because it’s at zero. It’s been a hell of a ride. This economy is fucked though.
Crikeste@lemm.ee 1 year ago
Hey man, you live in a democracy. Go vote to change it. Oh wait. You can’t because you don’t live in a democracy.
BleatingZombie@lemmy.world 1 year ago
Yeah! Take THAT person in an unfortunate situation. I bet you feel stupid for not having enough money to move, poor-y
TopRamenBinLaden@sh.itjust.works 1 year ago
You are so smart. Why don’t poor people just move to a democracy? Its not like it requires money. Poor people should just abandon all of their friends, families, and connections by spending all of that money that poor people are known to have.
Etterra@lemmy.world 1 year ago
In what universe is this even possible for most people? Because it’s not this one.
scoobford@lemmy.zip 1 year ago
Its possible in this one, it just isn’t easy, takes a while, and generally isnt super pleasant.
When people say to “live within your means”, they don’t mean “don’t spend more than you make”, they mean “save enough to maintain your financial security”.
Zink@programming.dev 1 year ago
I was that person until mid 2019.
Then some unexpected huge home expenses vaporized the emergency savings.
Then COVID happened and I lost my job! TWICE! This was after being an engineer at the same company for 16 years. My shit was stable AF before it all started.
Now I’m a much happier person with a much better job, but my finances are LOLfukt. Fortunately due to me trying to be careful in the past, I already owned a small cheap home in a reasonable COL area, so I can’t complain.
droans@lemmy.world 1 year ago
Now I’m a much happier person with a much better job, but my finances are LOLfukt.
Not really; you just found out why an emergency fund is important.
helpImTrappedOnline@lemmy.world 1 year ago
It is in this one. Unfortuanlty its not easy, and any medical event, car issue, house issue, or girlfriend can wreck that in a day.
TankovayaDiviziya@lemmy.world 1 year ago
If you stay home with your parents for a little while and save, you’d get plenty of savings within a year or two. I know I did.
I know in more individualistic countries not moving out by 18 or 20s has traditionally been seen as taboo, but the current societal situation makes that traditional social rule very impractical for many. Besides, from what I heard in the USA, still living at home with parents is less stigmatised than before.
kiljoy@lemmy.dbzer0.com 1 year ago
My savings where wiped out buying a house. Now it’s fucking impossible between maintenance and god knows whatever else is flung at me.
Botree@lemmy.world [bot] 1 year ago
Moving out at a young age is only a norm in just a handful of countries, mainly the English speaking ones. Reason being that they were more developed than the rest of the world, making it possible for them to move out when they turn 18. Poverty is a big reason why families are closer and live together for a much longer period. But many of these developed nations seem to be regressing these days, with more money flowing upwards than downwards.
I agree though. The best time to move out is after you’ve worked and saved up enough for a down payment for your own place. Those few years are perhaps the best opportunity to save up that most of us may never get again.
Aux@lemmy.world 1 year ago
In any universe. Just stop wasting money for a change.
Anamnesis@lemmy.world 1 year ago
Lots of good reasons why someone might end up in debt. I got divorced and laid off. Dog needed $2k surgery to not have a terrible quality of life. Got a terrible staph infection on my chest after losing health insurance. This all happened in a four month period. I moved to a cheaper apartment, cut off any subscription aside from internet, which I need for two of my four jobs, got a cheaper phone plan, and mostly ate rice and beans every day. Still, it’s taken a year just to get back to zero.
PriorityMotif@lemmy.world 1 year ago
I have about $10k socked away into an HSA account from when I had a high deductible insurance plan. With an HSA you can leave the money in an investment account, you don’t have to withdraw it when the cost occurs. You just need to have receipts for the amounts you withdraw so you can show them to the IRS is bed be. So I save all my receipts for doctors visits, prescriptions, OTC medicine, glasses, dental, and anything else allowed. Then I have tax free money sitting in an investment account that I can withdraw tax free if I have a real emergency.
You can also put money into a Roth IRA and you can withdraw your contributions tax free.
There’s a bunch of ways to make your money work for you and still have access to it in a true emergency.
GissaMittJobb@lemmy.ml 1 year ago
I honestly think the “6 months of salary in an emergency fund”-advice is a bit overblown and certainly not universally applicable.
An emergency fund must per definition be very liquid in order to fulfill its purpose, hence you can only really place the money in a simple savings account with a not-so-spectacular interest rate. This means that the opportunity cost of having 6 months of salary in an emergency fund is the delta of expected return on investment in a higher-yield method of savings, such as placing the money in index funds. This can be quite significant, in particular since saving up 6 months of salary is not an easy task for the average person.
If you had the money placed in investments, the money would be less liquid, and there’s the chance that you may have to liquidate it during a downturn, which would of course suck a little. Consider carefully under which scenarios you would have to liquidate, though:
- Lost your job? I have unemployment insurance to cover this scenario for me, meaning that I will get 80% of my current salary for close to a year, a period during which I would have to liquidate nothing.
- Disaster strikes my home? My home insurance policy covers this more than enough for me.
- Medical emergency? I’m lucky enough to live in a country where health care is free, but I have additional health insurance on top of that as well.
- Emergency while traveling? I have great travel insurance. They cover all medical expenses and would even fly me back home post-haste in disaster scenarios.
- Other accidents where I hurt myself? You guessed it, I have insurance for that too.
Now, there’s an argument to be made that these insurance policies might be a bit slow to pay out, and that I might need to be a bit more liquid to cover the expenses temporarily. I have a solution for that too - credit cards. With credit cards I can make a short-term loan that should bridge over most issues until I can either get money from any of my insurance policies, or worst case have time to liquidate some of my higher-yield investments.
So yeah, that’s my plan. It does not involve 6 months of salary being invested in a low-yield savings account, because that’d lose me a lot of money. I dislike the fact that the 6 months emergency fund is basically parroted as religious gospel, and it feels like people who repeat it have not thought about the issue thoroughly.
SkippingRelax@lemmy.world 1 year ago
You seem to be in a very unique situation. And to have a pretty good understanding of personal finance and of your risk appetite. What you say works for you and a few people that happen to have access to universal healthcare, what looks like for separate insurance policies, and that can manage not to fuck it up with credit cards.
6 months liquid emergency fund remains the best strategy for most people out there that can afford it.
XTL@sopuli.xyz 1 year ago
Not a unique situation. It’s pretty much the average for millions of adult to middle aged people in several countries.
Not nearly the norm globally but calling it unique is pretty ridiculous.
timbuck2themoon@sh.itjust.works 1 year ago
It’s a generalized thing that is healthy advice for most people, especially Americans who have very little of a social safety net.
HobbitFoot@thelemmy.club 1 year ago
Stocks and mutual funds are liquid enough to act as an emergency fund; you don’t need to rely on a savings account only to hold your emergency fund.
SkippingRelax@lemmy.world 1 year ago
Would certainly suck if those six months worth of emergency fund had temporarily gone down to four months because of a downturn in the stock market though.
Accidentally there might also be some correlation with stock markets going down, and an emergency happening. Eg large company laying staff off.
That said you can do the math and see how much that money would return on average on etfs compared to a bank account, and decide if that’s worth the risk to you.
Experts say no, I agree with them but I see your point, and it’s definitely worth to challenge these suggestions.
boredtortoise@lemm.ee 1 year ago
Some say a good rule of thumb is 3–6 months depending on personal situations and it looks like you’re safe with the lesser amount.
I usually hover around 3–4,5 months but have decided to increase a bit because of the current instability of everything
pearsaltchocolatebar@discuss.online 1 year ago
It’s not 6 months salary, it’s 6 months of expenses, although those numbers are likely close for most people now.
dream_weasel@sh.itjust.works 1 year ago
You could also consider a ladder of cds as an example, but then you either have to continually re-up 6 month cds or go for a year of them, each for about your monthly expenses.
I just take the 4% interest (or whatever rapidly changing amount ally bank offers me on savings since they update a lot) and roll with it. For now it’s a similar ROI to renting a property without all the fuss of… Buying a property and doing the work lol.
Evil_Shrubbery@lemm.ee 1 year ago
Meanwhile giant megacorps after 2 weeks of lockdown go bust bcs free money.
datelmd5sum@lemmy.world 1 year ago
6 month of work just sitting thete getting eaten away by inflation doesn’t spund smart. Either invest that shit or boof that shit while getting your dick sucked.
FlyingSquid@lemmy.world 1 year ago
Multiple times now, I’ve had people on Lemmy tell me that I am either not caring about my future or not caring about my child’s future because I buy myself an occasional chai latte and her an occasional smoothie or some Taco Bell food.
I hate this idea that you should deny yourself any and all pleasures in life so that you can have a decent 10-20 end-of-life years when you retire. People made fun of the avocado toast guy, but suddenly now he’s got the right idea?
I’m not going to have major retirement savings if I put the maybe $20 a month at most that this costs and it makes our lives a little less miserable right now.
Spaceinv8er@sh.itjust.works 1 year ago
I’m 38 and I just achieved that goal.
Don’t stress about this shit (too much).
Go to concerts, take trips, eat your avocado toast. Indulge.
You’re only young once, and everyone is poor in their 20’s. Unless you’re lucky or it’s given to you.
It sounds trite, but success will come. However you measure it.
ipkpjersi@lemmy.ml 1 year ago
I bet less than 25% of people do this.
Thcdenton@lemmy.world 1 year ago
I got 12k debt and 300 in the bank haha
KingThrillgore@lemmy.ml 1 year ago
Yeah man I got it saved up
possiblylinux127@lemmy.zip 1 year ago
You should have an emergency fund. You never know when something bad will happen. For all you know your house could get bulldozed or you car could get damaged by something the insurance doesn’t cover
DudeImMacGyver@sh.itjust.works 1 year ago
Pretty fucking difficult when you’re living paycheck to paycheck
andxz@lemmy.world 1 year ago
This hit a lot harder than I feel comfortable with.
Vespair@lemm.ee 1 year ago
My “emergency fund” is basically whichever of my organs I can sell.
UnfortunateDoorHinge@aussie.zone 1 year ago
If you’re under 30, full-time job, no looming debts, no kids, then the 6 months can really be 3 months or around $10,000. If you have a partner, you are even more secure. Remember this is a figure derived from very conservative financial commentators who assume you have a linear college and job progression (which is rarely the case). Even a 1 month savings buffer will save you for 90% of the unexpected expenses.
If you’re in your late 50s, finding a new job will be tough, especially if you are laid off during a recession. In that case a generous buffer beyond 6 months would be good.
Either way, having savings is a good thing. Yes you will miss out on those “epic Bitcoin gains”, but once you have made an emergency savings buffer, then you can really knuckle down on contributions to retirement.
MystikIncarnate@lemmy.ca 1 year ago
I don’t have anything remotely close to 6 months savings in the bank. It doesn’t make economic sense for me to do so. I’m far better off talking any would-be savings and put it towards all this debt I’m still carrying from my college days.
You will never make more interest on an investment than you will get charged interest for the same amount as a loan. Ever. It does not happen. So for me to sit on money that could go towards paying down debts, I’m just needlessly paying more in interest than I would be otherwise.
My current plan is to pay down or pay off all by debts (ultimately paying them off but if they’re close then ok); then consolidate all of my remaining debt into a line of credit, and close out all of my other debt accounts. When that’s paid, it will hopefully be enough that I can put that available credit towards any spontaneous costs, and if no such costs occur, save as much as I can so I won’t need the line of credit if I have incidentals. Hopefully saving up to 6 months or more, plus investing into a retirement fund.
The retirement fund is an afterthought because at this point in my life I expect that I will be financially incapable of retiring. I’ll just work until either I go crazy (dementia or similar), or I simply die at my job. I’ll just work until I’m dead.
I’ve been so financially fucked by all the once-in-a-(insert large amount of time here) events that just coincidentally all happened during my life so far that this is what I’m expecting going forward. Record inflation, stagnant wages, everything as-a-service basically robbing you monthly for something you should have bought and long since paid off, but instead you’re paying for in perpetuity for no good reason…
Everything has turned into a monthly charge. It’s terrible, and you think “oh, it’s only $20 a month”. Yeah, that’s $240/yr. For something that probably doesn’t make you any money and probably doesn’t help you with your employment or any earnings you may bring in… It’s just a stupid tax. We’re stupid.
Harbinger01173430@lemmy.world 1 year ago
I have like 14 salaries saved up already but they are barely 10k dollars because of my stupid third world country currency :‘) am I doing well or should I just give up and wait for my next reincarnation? :’)
0nekoneko7@lemmy.world 1 year ago
You should’ve told me earlier when I could’ve. Now I learned the hard way.
UncleGrandPa@lemmy.world 1 year ago
Start running a zero balance with a set amount. So if you ste your zero at $100. If you have $200 you only have 100. Raise this over time until you have enough
jeena@jemmy.jeena.net 1 year ago
In my life it was either I could not save anything or I could save a lot, the expenses are basically the same but the income changed. Once the income was higher than the expenses the saving happened automatically and are steadily growing over time.
JackLSauce@lemmy.world 1 year ago
It’s generally 3 - 6 months of living expenses depending on your situation (generally on the low side unless layoffs are likely) which is very different than salary of an equivalent time frame
cumskin_genocide@lemm.ee 1 year ago
Bro if you can’t make it in the richest nation on earth then no matter what you were going to fail. It was over before it began, just accept your fate as an economic incel.
insufferableninja@lemdro.id 1 year ago
6 months expenses, not 6 months salary.
Avg@lemm.ee 1 year ago
When you are living paycheck to paycheck, that number is probably the same.
db2@lemmy.world 1 year ago
And when 6 months of expenses exceeds 6 mounts of pay?
phdepressed@sh.itjust.works 1 year ago
Then you’re boned without help or better pay.
PatMustard@feddit.uk 1 year ago
If your expenses are more than your pay then you can either get a better paying job, cut your expenses by moving, or die
ramble81@lemm.ee 1 year ago
And for the people who that is the value?
Lowpast@lemmy.world 1 year ago
Then you save 6 months expenses.
Conyak@lemmy.tf 1 year ago
Also, 6 months may be more than needed depending on your field. If you lost your job today how long would it take you to find a new one? It could be six month but maybe less. I keep 3 months of expenses on hand because it has never taken me more than a month to find a different job.
Empricorn@feddit.nl 1 year ago
Do- do you think I don’t have to spend most of my pay every month just to survive…?