Do you have a "comfortable" size savings account?

[Luvchefmic]

This is exactly what happened to us - nobody would have ever predicted it and once we recognized the decline for what it was it was too late to do anything but ride it down to the bottom. They were hard, hard times; financially, emotionally and relationally. But "freaking-out" would have changed nothing. We lived adequately, kept the bills paid on time, managed to put DS through private high-school and had a modest vacation or two that we don't apologize for. All of it was paycheque to paycheque and supplemented by our savings. Nobody can make me feel bad about it and not only is it a "common" condition, we were much more fortunate than some.

Without going into all the details Jan 2012 I had an accident at work. I was in the wrong place at the wrong time. 2 fractures and workers comp, then I went back to work, had some absenses due to pain, got fired because of attendance Mar 2014, got an attorney, won the right to collect unemployment, won a small settlement. Now savings account is back up.

This past fri 2 growths found on 2 separate dogs. First one has surgery this Wed. Savings will go back down. Could anyone predict any of this ? Of course not.

We are not living in the streets, we are not hungry, you laugh or you cry right ?

 

[Luvchefmic]

Exactly. That's what we're talking about. Your posts are totally confusing me. You seem angry that people think saving is important, that somehow we are insulting you and implying you weren't prepared since having savings didn't protect you from trouble, but then you talk about being proactive and having a plan. Even the best laid plans get derailed sometimes. That doesn't make trying to have a plan somehow bad or wrong. No one has said having savings means nothing bad will ever happen. Bad things happen to good people. Feel free to come on and tell me again that saving doesn't work. I'm not sure what good it will do, but if it makes you feel better...

I have no idea what you are talking about there is no anger or being insulted here. Who is " we " that is supposedly insulting me. You are coming on like a freight train with no warning.

You quoted what I was telling someone about how you get through it. Where did I say you shouldn't have savings ? I SAID savings is important. Read the first post I have on page one.

 

[disykat]

Paycheck to paycheck is common, but it is not ideal. Most of us need standards and goals to aim for.

I've had lots of times in my life where paycheck to paycheck was my reality. However, having savings goals has always been helpful to me in terms of keeping my spending within my means and trying to prioritize tucking some away for emergencies.

Without goals it's too easy to throw in the towel and let the debt pile up.

In reality the paycheck to paycheck life is a common life.






Of course it's not ideal, but it happens to more people ( I include myself and my husband in that ) than many may realize.

You can have all the money you ever think you would need put away for an emergency and it can get sucked right out of your lives over time like a vacuum was attached to all your savings, checkings, stocks, etc until the circumstances change. As long as more debt is not piling up, a roof is over your head, food is in your belly you make it until the next day...then you get up and do it all over again. God IS good and things will turn around.

It has nothing to do with standards, goals, or throwing in a towel.

You quoted me. I felt you seemed insulted by my post, and the posts of others since we were all talking about savings and you seemed to feel savings doesn't work. Then I responded by quoting another post of yours that seemed to agree with my original one. I'm not trying to come at you like a frieght train. I'm trying to figure out what your point is.

I said planning, etc. You said it has "nothing to do with" that. Then you said make a plan. I'm just confused.

 

[Luvchefmic]

You are confused and if this was all written on a piece of paper you are going scissor happy and copy and pasting out of context The last bolded was the last sentence in response to xlxo's post. You took that sentence and placed it on another. You are causing your own confusion, Once again I am not angry or insulted. I have no idea where you are getting any of that from. Life is short I have no desire to get into an argument or have someone tell me how I feel.

Quote:
Originally Posted by xlxo View Post
Some say you should have 3 month salary on standby, especially if there's a upcoming labour disruption or you know your job contract is coming to an end.

Kinda hard as many of us live pay cheque to pay cheque.


MY RESPONSE WAS:

I totally agree with what you are saying. Sometimes " they " say even more than 3 months. There are many so called experts, ones that make a living selling books, programs, etc you know the big names, and self-proclaimed experts that think they have all the answers.

In reality the paycheck to paycheck life is a common life.

 

[tinkerone]

while *the so called experts* don't have ALL the answers I certainly feel it is worth any ones time to go through a few of their books or on line web sites. you don't have to buy the books, there are libraries and friends will often lend them to you. you really can get some good ideas. use what fits your family and discard the rest but don't just write them off.

im a retired banker and have had to read my share of financial books in my position. some sucked and were dribble, some so dry I would fall asleep however I have found some that changed my thoughts completely and changed what I thought I knew.

remember the wealthy barber. his first book was outstanding and it was written in story form, so easy to apply to everyday life. just amazing, blew me away. I gave copies of that book to many people. shortly after that success there was a book called the wealth paper carrier that was written to teach children financial stratagies. both my children received copies at about age 13.

sorry this post is so long, im just trying to say (even though im dragging it out) that just because someone is making money selling their financial thoughts doesn't mean that its a waste of your time. you could be pleasantly surprised. you could take away just one thing that could help change your finances for ever.

 

[dpswift]

Those who have tapped into savings due to job loss or similar - how do u get through that on a daily basis without being terrified. We might have to start dipping into our savings and I am terrified of doing so.

Unfortunatly you cannot. Job loss is what made us live paycheck to paycheck and it is getting harder and harder to stay afloat.

DH was out about 5 months He took a contract job that pays about 20,000 less than his old job. The commute is an hour compared to 10 minutes. I had to pick up the insurance so my pay dropped considerably as well.

We actually had finally gotten on a good path but now I do not know.

 

[eliza61]

while *the so called experts* don't have ALL the answers I certainly feel it is worth any ones time to go through a few of their books or on line web sites. you don't have to buy the books, there are libraries and friends will often lend them to you. you really can get some good ideas. use what fits your family and discard the rest but don't just write them off.

remember the wealthy barber. his first book was outstanding and it was written in story form, so easy to apply to everyday life. just amazing, blew me away. I gave copies of that book to many people. shortly after that success there was a book called the wealth paper carrier that was written to teach children financial stratagies. both my children received copies at about age 13.

sorry this post is so long, im just trying to say (even though im dragging it out) that just because someone is making money selling their financial thoughts doesn't mean that its a waste of your time. you could be pleasantly surprised. you could take away just one thing that could help change your finances for ever.

I also read the wealthy barber. IMO the problem is there is a HUGE!! difference between that book and what's out today. In a nutshell, the wealthy barber was more "this is how you can have a comfortable lifestyle on a modest budget". the crap certain gurus push is "if you don't subscribe to my method, you are doomed to living in a card board box in your old age and the rest of us will have to support your selfish %^%".

I literally had a long term care insurance salesmen tell me I was "selfish" because by not buying his product I was going to end up on state assistance that his generation would have to support.

So in my opinion the tone and focus has change from trying to help to trying to scare.

Look at it this way, if you were trying to get your kids to study, generally you try to motivate them. Most folks don't tell them that if they don't study they will be losers for their entire lives without any means to support themselves.

Unfortunatly you cannot. Job loss is what made us live paycheck to paycheck and it is getting harder and harder to stay afloat.

DH was out about 5 months He took a contract job that pays about 20,000 less than his old job. The commute is an hour compared to 10 minutes. I had to pick up the insurance so my pay dropped considerably as well.

We actually had finally gotten on a good path but now I do not know.

Hang in there dpswift, and I know it's easier said than done. Just know that many of us have been in the financial "valley" once or twice during our lives and it's hard to see the sun at the end of the clouds. It will get better.

 

[SC Minnie]

We did until DH lost his job in March. He refused to sign the severance agreement due to them wanting him to consult as well as some other language in the agreement so we were slammed into 1 income pretty fast. Thankfully we did have savings and haven't completely tapped all of it yet. I am praying something turns around very soon.

 

[pryncess527]

Our emergency job loss savings is lower than we'd like at the moment because we had to rely on it for awhile when my husband was unemployed last year.

But, we have money in quite a few savings categories to help us weather a number of emergencies that could arise, so we are in decent shape. Certainly 1000 times better off than we were before we found YNAB and started using it to get our budget priorities in order. Simple things like our Home Repair or Computer Upgrade category have been a lifesaver in recent months, allowing us to easily fit large repairs in our budget without altering our monthly spending or causing the kind of stress it would have years ago.

 

[SAMCRO]

I was comfortable, however we just bought a new house and made a nice down payment and the next week the HVAC system went out and had to shell out another $5000.00.

Needless to say I'm in the rebuilding stage right now.

 

[crisi]

I also read the wealthy barber. IMO the problem is there is a HUGE!! difference between that book and what's out today. In a nutshell, the wealthy barber was more "this is how you can have a comfortable lifestyle on a modest budget". the crap certain gurus push is "if you don't subscribe to my method, you are doomed to living in a card board box in your old age and the rest of us will have to support your selfish %^%".

Part of it is what is comfortable. A lot of us have dreams to - lets say golf in retirement. My parents are at the young retired stage of life (70s) and like to golf. They saved outside social security, get two social security checks plus the 401k distribution - but they can't golf as much as they'd LIKE to. And get out of Minnesota for January - which they'd also like to do.

They are certainly comfortable - they moved into a very nice townhouse. Are not even close to eating cat food. But some of the things that you think are modest wants - spending three weeks in a condo in Arizona in the Winter - turn out to be expensive budget busters.

We have always made a lot of money - and we've saved a lot of money - because we've lived a life where we spend less than we make. But a reasonable life with two teenagers who need new shoes and computers for school and sports fees, vet bills and food for a dog and a cat - the dog starting to get old, treating my mother in law to dinner because otherwise she wouldn't go out, paying for pizza for a house of teenaged boys or girls - all that is expensive. And those are the extras - the expense of heat and groceries and taxes and health insurance/deductibles.....I can't imagine on a small income - and then to live off savings when you go through a job loss.

 

[lisaross]

I hope things turn around for you in the near future...

Unfortunatly you cannot. Job loss is what made us live paycheck to paycheck and it is getting harder and harder to stay afloat.

DH was out about 5 months He took a contract job that pays about 20,000 less than his old job. The commute is an hour compared to 10 minutes. I had to pick up the insurance so my pay dropped considerably as well.

We actually had finally gotten on a good path but now I do not know.

 

[AquaDame]

No, but we just bought our last round of Disney gift cards from Target last night, and the car loan just has two more payments then it will be paid off. After that we should be able to make better headway - between the two its almost 1K a month right there freed up, I can't wait!

 

[ellochka]

To me, there are true emergencies, like a job loss and there are "irregular bills". The last category is often overlooked in budgeting. That includes any unexpected car or house repair bills, medical co-pays or vet bills. These may not come on a schedule, but one thing for certain - they will happen. It's wise to budget for them, and put the money away. I would not even consider those to be savings. These are purpose funds.

 

[ellie05]

My answer was no. We recently move and the military has not reimburse us yet so we are waiting on that. Also our house sat on the market about 1 month before we got renters in, this was kind of our fault because we couldn't list it sooner but the kitchen was getting work done since the dishwasher leaked and messed up the laminate of half the house. With that being said we still have money in savings but no where near it was 6 months ago.

 

[lisaross]

I agree and do budget for everything - even minor yearly expenses.

To me, there are true emergencies, like a job loss and there are "irregular bills". The last category is often overlooked in budgeting. That includes any unexpected car or house repair bills, medical co-pays or vet bills. These may not come on a schedule, but one thing for certain - they will happen. It's wise to budget for them, and put the money away. I would not even consider those to be savings. These are purpose funds.