Ask Lemmy

My relationship with money is kinda weird. When I was a kid I would always save my allowance, but my siblings would steal it from me. My parents never did anything about it. When I had finally had enough, I stole some money back and then said all the bullshit excuses I had received over the years. The stealing stopped then.

I don't like money and I don't care much about material stuff. When I was in university, I was dirt poor, but I managed. Then I got a shitty job and didn't make a lot of money, but it was so much more than what I had before, that my bank account started to grow. And that made me very nervous. Every time I saw my balance I panicked. I didn't know what to do with all that money, there was nothing I really wanted or thought I could have. I did go on a vacation then, which was great, but I felt really guilty afterwards about the expenses I'd made.

After some time I lost my job and since then I've received benefits. Because of the system here and because I'm still quite frugal, I still have a significant back account. In a few months' time I will hear if I will keep receiving benefits or not, and if I spend the money now, it will be beneficial for me financially. I should basically buy something expensive and eat out and buy lots of clothes before the government takes my money, but I can't. I'm just not able to.

What doesn't help is that I hate the fact that the world is in such a miserable state. Sure, I could buy a car, but I don't need it and why would I mess up the environment even more just for my own pleasure and comfort? The same goes for clothing, equipment, furniture, anything. I don't like this capitalist system that produces crap and ruins the planet. I don't want it. But there's nothing I can do about it other than what I already do. Also, most of the stuff you can buy nowadays is just plastic crap. I can't even find decent cotton socks anymore, it's all plastic. And it all breaks way too quickly, just so you have to buy new plastic crap again. Fuck that.

It is crazy given my healthcare costs are 2k. I pretty much have a monthly nut of 6k and my wife and I do not live a lavish lifestyle oh and I won't be able to work much more before I will have to figure out retirement. I will be in ruin if I can't produce thousands a month.

I've certainly been worse of, but not I'm not.. Great. ButI have a roof over my head and me and the cat are fed. I can enjoy a video game here and there. However, I don't have $1,000. Not for lack of trying, but things happen (moved, sick cat, broken car, the usual). I personally like to have at least one month of rent, but that doesn't always happen.

Sometimes it just works out that everything I need takes everything I have.

I've got $0.85 in savings, because I put my rent and car payment money in my savings account each month until I need to pay those bills. I did at one point have $1000 saved up as a rainy day fun, but then it rained for a whole year (financially speaking). Now I don't even have credit cards to fall back on, as those have been maxed out and gone to collections. I'm looking for a job in an industry I left because it was driving me to alcoholism (software), but that job market sucks a little more than the service industry, so I'm not optimistic.

Oh yeah and I'd be homeless if I didn't have family who were willing and able to loan me rent money.

Not saying the exact number, but well enough that I could go and buy an X5 right now. I'd rather spend any excess money on charities over materialistic status symbols though, and I've donated a lot of money to research charities in particular.

I'm digging myself out of a $13k credit card debt hole. I burned through my savings when a job that I had ended on my unexpectedly, and because it was contract work I wouldn't qualify for benefits. They kept me around as a sub, promising me a full time position if I just stuck around long enough and I was foolish enough to believe them.

I'm self employed now and making do with the best I can, but I'm planning on ending my dream as a musician/ teacher and moving home. I don't know who would want my skills, but I know they are specialized and strong. I just gotta see what kind of work would value them.

Im doing pretty well. Living in Germany, educated parents. Did okay in school, never studied much though. Went to university, got my Masters in Mathematics (needed to study a lot for that, but its my passion anyway). Started working at an IT company in the same city.

3 years later, I have around 50k in savings now. We live in a small apartment, are in the middle of buying a house.

Capitalism is really fckd up, especially in the US. I try not to take advantage of it too much, up my monthly donations with every raise, vote left-ish, dont support big corporations.

I think the biggest factor for success is luck for being born under the right circumstances. Thats like 99%, the rest is having some self control.

Not great, but I might be able to cover a grand in an emergency.

I have 1k euro left. No job, 35 years old. I wanna kill myself sometimes.

There are a lot of very poor people in the US compared to other developed countries. There are also a lot more extremely rich people. The inequality is palpable, and it shows in the stats. The US government also doesn't step in with coverage when it comes to healthcare, unemployment and other emergencies to the same degree as governments in other western countries.

I am not American, but Austrian. I earn way more money than I spend each month, causing my bank balance to rise over time; I am not going to say exactly how much I have, but €1000 (which is about the same as $1000) is no problem for me to afford when I need it.

While it's better than the alternative, it still doesn't make me very happy because this only helps fulfill the bottom two levels of Maslow's hierarchy of needs. I wish I could easily earn less money, but have more free time to travel and pursue hobbies, but the system of wage labor is not flexible enough to cover the needs of someone like me.

I have $15.

Not just that I can spend. Not "until sometime in the future." Just $15.

I can't cover an unexpected 1k. Thats my entire bank account. Every month my paycheck is eaten by bills and obligations and every other month my rent raises while my salary stays the same. I have 1 dollar in my savings, but a 401k with 5k in it. I also have kids and a wife that stays at home to watch them. May not be the best financially but I can't actually afford daycare to begin with.

Better than ever. But I hate my job with a deep and burning passion, and I'm pretty deeply burnt out. So I'm not sure what to do. I'm worried that I won't be able to find anything that pays as well.

They release data for stuff like this. Currently 46% can cover a cost of $2K or more with just savings. 57% for $1K or more.

Not sure if youre only asking Americans, but in case this is for everyone:

I'm doing pretty well.
Could probably scrape by for a year if my wife and I both lost our jobs.

Mainly lucked into success:
My boss from a summer job when I was in college knew the boss of an internship I was applying for, and put in a good word for me.
They hired me upon graduation, but went under shortly after, however a large company was on a hiring spree right at that time and I landed a job there with a hefty pay bump.
Then I got laid off there right as a local startup was on a hiring spree to increase their valuation because they were looking to be acquired by a major high-tech company, and they hired me, again with a hefty pay bump.
They got acquired, and I started working on a team based on San Francisco. Because wages here were so much lower than the bay area, they were throwing raises at me because it was pennies to them.
I've been there for over 10 years.

As long as AI doesn't make my job redundant, I'll be good for the foreseeable future.

I was right on the edge of being able to pay rent on time, for the first time in six months.

Then a family member arrived in town and has been staying with me. His other option is staying on the street or in a shelter, both options of which make his health issues worse. This has disrupted my sleep and psychological rest, resulting in me being able to work less.

Also, I got rear ended while stopped at a red light last week, giving me a concussion. This has also reduced the amount I can work.

I’m extremely worried about my financial status. I cannot cover the expenses I have, let alone any unexpected new expenses.

I’m squarely on the road to being homeless, unless a miracle happens.

Ever read Miller's Death of a Salesman? well it's almost like that, but without any insurance.

I have $15k liquid savings and another $50k I could pull from my Roth IRA in a dire emergency. It's not as much as I'd like, but I'd be ok if I lost my job. I live in a HCOL area so it doesn't last as long as you'd think.

I make a good wage, but I work my ass off for it. I credit my financial success largely to luck, my work ethic, and the great state of California. 10 years ago I was making $20k a year, now it's close to $200k. The main difference was I moved to California. No college degree, blue collar job. Skilled labor. I took jobs with companies that would train me, took promotions, and job hopped a lot.

I pay a ton of taxes and I'm happy to. I'm giving back to the community that enabled my success. If anything, I should be paying more taxes. I do donate about $80 a month to various causes, mostly carbon capture to eliminate my personal carbon footprint, because the environment is very important to me and I like to feel I'm not part of the problem.

I still have $20k in debt, on credit cards but at a promo 2% interest. I hope to pay it off in 2 years.

My philosophy with money is honesty not very healthy in some respects. I've been chasing dollars for years, to the complete atrophy of my social life. I've been pouring money into my retirement and have about $300k saved up in 401ks and IRAs. I also send a ton of money to my parents who are still stuck in the poor Southern state I grew up in.

In my next phase of my career I hope to transition to a job that will keep the same wage but give me a better work/life balance. I work 60 hours a week, add commute time and it's 75 hours a week.

I'm also fucking sick of working with all dudes. The trades are overwhelmingly male. I can go weeks without even talking to a woman.

I'm in my mid 30s. I came to California homeless in a beat up '92 coupe with $30 in my pocket. I'm the poster child for pulling yourself up by your bootstraps, so listen to me when I say I would not be where I am without the support of a pro-worker government and a huge dose of luck. Taxes are good. Unions are good. Worker protections are good. Even with all that, I am an outlier. We (the fortunate) need to do more to help others.

What’s your relationship or philosophy with money?

A life-changing shift to my approach has been to worry about absolute amounts rather than percentages. Saving $10 on a $20 item feels great but ultimately is the same thing as saving $10 on a $500 item (which feels like nothing).

I grew up lower middle class: never had to worry about not having a roof over my head, but there were times we were somewhat food insecure, and spending money on leisure/entertainment or anything unnecessary for survival was a foreign concept until I got to high school and some my parents' career moves paid off and put us in upper middle class. It took them a good 10+ years before they could relax a little bit and feel secure with their money, though, and that was as much driven by the fact that their kids were adults who had moved out.

So life has been about deciding which of my parents' frugal attitudes and approaches to money to keep and which to discard.

Things I decided not to adopt:

• I slowly learned to stop caring as much about wasted food. Food is just cheaper now compared to when I was growing up (even if the last 5 years has shown an uptick), and as a society we have more issues with obesity than hunger, so cleaning off a plate seems like it doesn't actually do that much good.
• My time is worth something to me. I will gladly pay the few dollars here and there for convenience.
• I'm glad I ignored my parents advice to buy a home as soon as I could and build equity or whatever. I rented and it worked out great for me, giving me the flexibility to make changes at different stages of my life.

Things I kept:

• Life is uncertain. Always be prepared with whatever you can accumulate for financial resilience: cash, other property, lines of credit, marketable job skills, literal insurance policies, etc. Don't underestimate the importance of personal relationships, whether it's "credit" from friends and family who can help you out of a bind, colleagues who can refer work to you, bosses who will fight for your career, etc.
• Develop your career. Education and credentials are important early on, and up-to-date skills and a good understanding of the landscape in your field (both in the type of job and the type of industry you work in), plus solid relationships with people, can help you know when switching jobs is right for you.

Things I had to learn on my own:

• Life is unfair. Many types of unfairness are systematic. So why not position yourself to where the unfairness works in your favor, if available?
• Higher income makes it easier to survive mistakes on the spending side. To flip around Ben Franklin's quote, a penny earned is a penny saved.
• Know yourself and your own laziness. Set up automatic functions wherever possible: automatic bill pay, automatic savings, automatic investments, etc. Steer away from any strategy that requires active management, and towards strategies that tend towards a set it and forget it philosophy.

I've also made a shitload of mistakes, some of them pretty costly, especially back in my 20's:

• Paid probably thousands in credit card interest in my early 20's chasing lifestyle bullshit.
• Paid thousands in unnecessary car loan interest in my mid 20's by getting suckered by a dealer.
• Paid hundreds, maybe thousands, in late fees and interest from forgetting deadlines to pay shit I actually already had the money on hand for.

I'm rich now, most of it from luck (especially timing), much of it from personal relationships (good family, good marriage, good friends), some of it from actual effort (good grades from a good law school), and some of it from conscious decisions to steer towards my strengths and away from my weaknesses (lazy but smart, prototypical "gifted" slacker with undiagnosed ADHD).

It took a while to get here, though, and I was financially insecure well into my 30's. Sorta figured shit out then, and then married someone who complements me pretty well on these things, and covers my blind spots.

For the extra brave ones: how much savings do you have, and what are you planning to do with them?

I have some savings, and it's an emergency fund. It's representing 1-2 months of typical spending, that could be stretched to 3-4 months if I needed to stop the frivolous spending. But I have credit beyond that, and less liquid assets I'd be able to tap into if I were facing a longer term issue.

But I'm not saving for any particular thing other than retirement. If things accumulate and grow, great. I'll make a judgment call on when to retire based on how I feel and how much I have and what I want to do. I anticipate my wife and I will probably want to retire in our early 60's, based on our anticipated career trajectories and the ages of our children.

I have a decent amount of money in a 401K that I can't touch, and some stocks I bought during a time when I fell into a bunch of money, but an unexpected $1000 would not be possible. I'm a 42 year old married man with 5 kids and a full time job at a small college.

I should be doing better than this.

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.