I feel like the 6 month rule is pretty arbitrary. Most working people will be looking at 3 mos unemployment or disability in most hardship scenarios.
That said, $5k still doesn’t sound like very much.
How much you think my expenses are? i don’t own a home or anything. I live in a small apartment
I wouldn’t know, a lot of stuff to account for (cost of living where you are, how much your student loans are for, how far you have to drive to work, etc.).
But some back of the napkin math tells me that if $5k is enough to cover all your expenses for 12 weeks then you could be getting by at a job that pays $10.42 an hour full time. Seems pretty low for someone with 2 student loans and a car note.
One things for sure, $5k isn’t a lot if you have to out-of-pocket for a surprise major expense, like a major car repair or what have you.
I make 20.67 pr hr. But I get your point. You’re not just talking about expected expenses, but unexpected expenses as well. OK yeah in that regard 5k might not be enough. I’ll get to 10k before going all in on clearing my debt
Also depends on how you live your life(aka do you eat out a lot or eat ramen everday like a fuckin G, etc) and whether you are living ‘comfortably’ now and/or considered ‘middle income’. Check your state on this article to see if you are considered ‘middle income’.
edit: fuck NY. 
I don’t go out to much. I damn sure don’t eat out often. I mainly just eat what I cook at home, even at work I bring lunch from work. Fuck eating ramen every night, I not at that struggle anymore thank god. I’d say as of now I’m rich poor lol. What I make isn’t a whole lot. But to people who are truly struggling out here. I look like I’m ballin. Like the fact that I got a couple grand saved up, and I’m able to help out with the family here’n’there finacially has them thinking I’m that dude in the family, when I’m far from it lol.
Like they tell me not to be afraid to ask for help if I need it and if I’m doing OK. You don’t have to do it all by yourself. Because they be concerned that i never ask anyone for any help financially.
*I didn’t even read that BB had debt. In which case that changes things to where he definitely should be dealing with loans and settling any other debts after having enough in his emergency funds.
My approach to Emergency money has always been saving for 6 months cost of living plus 1 major life event. I never want to get caught in the rain without a big enough umbrella. *
If you’re in debt, you’re poor IMO. I have zero debt & retirement maxing out every year but i still feel not comfortable at all. We started late with the IRA & 401K. I wish they would have taught this shit in high school. Now im just playing catch up. I really need to get in on this stock market one day.
Someone mention to me about an index fund & hire an hourly rate financial adviser to setup. Anyone gone this route?
Yep mo argument there. Debt equals negative net worth. But i’m at least not struggling. I know I’m gonna eat everyday. I know I can afford my rent and other bills while still saving money. Then be able to tackle my debt. I grew up with a lot of people that aren’t even in that position. They just getting by
I think in general financial education is poor and our debt based economy is always looking for a sucker to get over-leveraged with bad debt. If you try and behave more rationally you can avoid most of those pitfalls. For instance, when I was looking into buying a house my wife and I qualified for a 650K loan. Could you imagine if you went 30 years paying the minimum payment per month? Being house poor is just years and years of struggling for no reason other than you chose not to stay within your means.
Does this also mean, let’s say, someone makes $200,000 a month but they are in like $2,000,000 in debt because of mortgage, cars, etc. Are they also considered poor?
In other words, if you are debt free of everything, then you are not poor, correct?
If you’re debt free, you’re a lot better off than that poor jerk making 200k a month. 
Seriously though. Getting rid of debt is one of the best things you can do, and quite possibly the most important. The kind of stress it puts on people is like a torment of hell itself. I know that when I paid off the last dollar of my own debt, I was a new person for days. Just the simple knowledge that the next paycheck is all mine… :love: It’s the kind of freedom that you can’t really experience until after you’ve lost it, then gotten it back.
-Starhammer-
Yup. Been debt free 10 years ago, but now have debt, know what you mean. Soon I’ll be debt free again…
@rcaido Check this reddit https://www.reddit.com/r/personalfinance/
Helpful guides regarding 401K/retirement accounts
I was out on vacation with no Internet access, its easy to setup. I think they only allow 4-6 withdraws per month, which is a lot for a savings account. And its no penalty for withdrawing your money. https://www.gsbank.com/savings-products/online-savings.html
I went into debt because I was poor, yep. But have jumped into my career finally and bordering on 90K/yr, maybe 110K by end of next. Throwing everything I can to have some emergency funds, then clearing out 30K of consoldated debt.
Have started salary sacrificing into my superannuation / 401k, want to build it up so it compounds well over the next 30 or 40 years.
America is a debt-driven society; it started in the 80s. Next time you go to the mall, count how many store asks you to sign to their ‘introductory’ membership card that gives you perks to their stores/network etc. I was in Best Buy over the weekend buying comp supplies and at the check out, the card machine if i want to have a ‘BEst Buy’ card to save 10% off, clicked ‘Fuck you, no’. CC knows the psychological effect when a person believes they have ‘$$’ they can use.
Even more hilarious; I walked by New York University and college kids were lining up to Credit card kiosk signing up for that free t-shirt/M&M candies when you sign up for their credit card. I’m like, should i warn these millennials?
Have $2800 in an IRA brokerage account I need to find something to do with.
Suggestions?
Invest in a small side hussle? There must be something you can get into with a few grand
Have to invest it through the IRA for the time being though, put it in there to dodge a tax penalty.
Also, no side hustle time atm with a newborn at home. Good looking out though!