I know this is just a meme, but I think it’s an important clarification: The rule of thumb is ~6 months’ worth of expenses, not salary. It really is important to hold you over in case of sudden job loss, since it takes most people 3-6 months to find a new job (but it doubles as a fund for genuine emergencies too, which can save your ass for stuff like unexpected medical or vet bills).
But unfortunately, lots of people live paycheck to paycheck, so for them, a month’s worth of expenses is the same thing as a month’s salary…
I’m friends with a woman who makes six figures. She’s always broke. She lives in a very expensive part of the country, but she always has to go to every big show. She travels all over the world, at least two major vacations every year plus smaller in country trips. She’s got a bedroom in her (rented) house with no bed, the whole room is for her clothes and jewelry. Blows my mind. No savings. She’s in credit card debt. If she’d just chill for six months she’d be so set.
You’re right. I’m not from the USA and I’m not living paycheck-to-paycheck, but having ~6 months of expenses as savings is manageable. That depends on your situation, income, number of children, of course. Will be problematic when you’re earning in the lower income brackets, but for most people that should be a little bit under 10.000€ here in Germany.
I know this is just a meme, but I think it’s an important clarification: The rule of thumb is ~6 months’ worth of expenses, not salary. It really is important to hold you over in case of sudden job loss, since it takes most people 3-6 months to find a new job (but it doubles as a fund for genuine emergencies too, which can save your ass for stuff like unexpected medical or vet bills).
But unfortunately, lots of people live paycheck to paycheck, so for them, a month’s worth of expenses is the same thing as a month’s salary…
I’m friends with a woman who makes six figures. She’s always broke. She lives in a very expensive part of the country, but she always has to go to every big show. She travels all over the world, at least two major vacations every year plus smaller in country trips. She’s got a bedroom in her (rented) house with no bed, the whole room is for her clothes and jewelry. Blows my mind. No savings. She’s in credit card debt. If she’d just chill for six months she’d be so set.
Sounds like she is enjoying life, but that stops at the credit card debt. Thats just dumb.
It gets worse than that. Many of us have expenses that are higher than our income.
I was going to say, until roughly 12 months ago 6 months of expenses would have been more than 6 months of wages for me.
Hell, still is if all I’m counting is my own income, and not household income
You’re right. I’m not from the USA and I’m not living paycheck-to-paycheck, but having ~6 months of expenses as savings is manageable. That depends on your situation, income, number of children, of course. Will be problematic when you’re earning in the lower income brackets, but for most people that should be a little bit under 10.000€ here in Germany.