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.
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.