this post was submitted on 10 Oct 2024
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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?

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[–] [email protected] 8 points 3 weeks ago (1 children)

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.

[–] [email protected] 2 points 3 weeks ago (1 children)

Great job! How did you get to where you are?

[–] [email protected] 4 points 3 weeks ago (1 children)

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.

[–] [email protected] 3 points 3 weeks ago (1 children)

Pretty traditional route, but it's traditional because it works.

[–] [email protected] 3 points 3 weeks ago

Yeah. I think one thing I need to note is that I used debt as a tool.

There has only been a handful of times I paid interest on a credit card as I've treated it like spending cash.

I had college debt, but that's because I had a plan for college going into it and kept the plan. The increase in wages paid for the debt payments.

I've bought new cars, but I buy cars way under my means and with the near zero interest rates that manufacturers use to get sales. Then, after I pay off the car, the payment goes into savings until I need a new car.

Debt requires self control, but it can be a good tool when used well.