I read that half of Americans couldn’t cover an unexpected $1,000 expense. This sounds crazy to me. I understand that poverty exists, but the idea that an adult with a job doesn’t even have that amount saved up seems really strange.
What’s your relationship or philosophy with money? What do you credit for your financial success, or alternatively, what do you blame for your failures?
For the extra brave ones: how much savings do you have, and what are you planning to do with them?
I can lose my job for a year and be ok. I’d probably cut back on some expenses, but it would probably be ok.
Great job! How did you get to where you are?
First, I chose a college degree that would lead to a career which would pay well out of college. I picked a more expensive college than I should have, but it was worth it and they gave me some scholarships.
Second, I lived under my means for the first few years. I made it a goal to build up at least three months’ salary as backup in savings. I’ve rented, but only in places with rent control, so my rent doesn’t increase drastically per year.
Third, after having a growing nest egg, I starting putting money towards my non-federal student debt to get rid of that payment, especially when I was working additional hours at work. I was able to pay off my 30 year loans in 10 years. After I paid that off, all the money I used for student debt went into my 401(k) and other investments.