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What's your current financial buffer?

  • Thread starter Thread starter Deleted member 284126
  • Start date Start date
D

Deleted member 284126

I'm just curious. We are still in this recession.

Financial buffer meaning that if suddenly you (or immediate family as a whole) have zero income coming in, how many months would your current reserve of money last you?

Let's also assume that you cannot seek external help from other family members and friends and such.

Personally, I'm a single male without dependants. If I lost my income today, I could go on for at least 3 whole years before it becomes immenent that I find a source of income.
 
The money I have available (not tied up in retirement accounts or anything) would last me about 9 months if I didn't change my lifestyle at all. I imagine I could stretch it to at least 15 if I had to without outside assistance and still not be miserable.

In reality I would probably move in with my parents after a few months if things were looking grim.

That's not counting credit cards or anything like that, btw.
 
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I could go about 3-4 years w/o changing my lifestyle significantly barring any unforeseen health issues or other unforeseen expenses. After that I'd have to dip into retirement accounts.
 
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Cant get a job, GI Bill doesnt come close to paying for school, just had some dental and kidney issues, racking up debt on the card like you wouldnt believe.
 
Straight cash I could last 2 years of current lifestyle, counting CC limits likely up to 5 if I maxed them out. However that does not include any health insurance like COBRA or something, so even with all that money probably about 2 months of paying those premiums.
 
shortylickens said:
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Cant get a job, GI Bill doesnt come close to paying for school, just had some dental and kidney issues, racking up debt on the card like you wouldnt believe.
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🙁


For me it's about 10 months or so and growing, excluding retirement accounts and whatnot (and assuming incurring no debts in the process). I'm ready to get the freak out of dodge immediately if the need arises.

KT
 
SpongeBob said:
I could go about 3-4 years w/o changing my lifestyle significantly barring any unforeseen health issues or other unforeseen expenses. After that I'd have to dip into retirement accounts.
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You actually have 3 - 4 years of income in savings ( liquid assets ) without any change in your life style?

How much is that exactly? Unless you are a millionaire I have serious doubts.

Between savings and my retirement income I could go for at least a year with no impact. With significant lifestyle changes I could go on until I am dead.
 
shortylickens said:
0

Cant get a job, GI Bill doesnt come close to paying for school, just had some dental and kidney issues, racking up debt on the card like you wouldnt believe.
Click to expand...

I personally would never mess with credit card debt. IMO they are essentially the modern day loan sharks. Ever since I got my first credit card, I've always paid off the monthly balance 100%, therefore no card interest so far in my life.
 
pcgeek11 said:
You actually have 3 - 4 years of income in savings ( liquid assets ) without any change in your life style?

How much is that exactly? Unless you are a millionaire I have serious doubts.

Between savings and my retirement income I could go for at least a year with no impact. With significant lifestyle changes I could go on until I am dead.
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What? You definitely don't need to be a millionaire to go on for that long. If a person has no debt and his/her lifestyle naturally doesn't require a lot of expenses, a person could easily survive 3-4 years.

That's how I am. I have no debt and my lifestyle doesn't require much money, so I can survive 3+ years.
 
Assuming absolutely 0 income from selling stuff or government aid, could last about a year living the same way as now without incurring any debt. Provided nothing unexpected like huge medical bills popped up.
 
I have been without income for almost two years now since I quit my job to start a business. My financial buffer has depleted 34% in that time at about $20k/year. The rise in the stock market this past spring helped. On my own, I could last another three years. However, there will be another round of inventory purchases for about $25k that needs to be adjusted for.

This future inventory purchase brings my buffer down to two more years before I need financial assistance.

Positive cashflow from sales should begin this winter to become self-sustaining by next summer.
 
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tzhu07 said:
What? You definitely don't need to be a millionaire to go on for that long. If a person has no debt and his/her lifestyle naturally doesn't require a lot of expenses, a person could easily survive 3-4 years.

That's how I am. I have no debt and my lifestyle doesn't require much money, so I can survive 3+ years.
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I'm saying with NO Change in lifestyle.... Not going deep in debt, not living off credit cards. Millionaire was a stretch. I still doubt the statement of 3 - 4 years with No Change in lifestyle.

Rent / Mortgage
Insurance
Utilities
Food
Clothes
everything no change.
 
pcgeek11 said:
You actually have 3 - 4 years of income in savings ( liquid assets ) without any change in your life style?

How much is that exactly? Unless you are a millionaire I have serious doubts.

Between savings and my retirement income I could go for at least a year with no impact. With significant lifestyle changes I could go on until I am dead.
Click to expand...

I have cash in a savings account that would cover 3-4 years at the rate of my current expenses. I am by no means a millionaire, I just save a decent chunk of my income every month and make a decent salary. I only have one major liability (mortgage) and that's only like $600/mo. If I don't make any major purchases (i.e. car) and don't have any serious health troubles, I could easily continue my current lifestyle (food, clothes, entertainment, gadgets, etc).
 
I could last about a year or more, but I'd most certainly move into cheaper accommodations after a month or so (assuming I had no friends or family members I could rely as you stated in the OP). It would be insane to pay NYC rents w/ no income. I'd probably stay in the city, but I'd hop on craigslist and find a share out in the sticks for a < $500/month.

Now that I think about it, if my rent were that low I could probably last a few years being very frugal, but that would SUCK.
 
tzhu07 said:
What? You definitely don't need to be a millionaire to go on for that long. If a person has no debt and his/her lifestyle naturally doesn't require a lot of expenses, a person could easily survive 3-4 years.

That's how I am. I have no debt and my lifestyle doesn't require much money, so I can survive 3+ years.
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Maybe if you live in your parents basement...

Survive doesn't equal Living.
 
SpongeBob said:
I have cash in a savings account that would cover 3-4 years at the rate of my current expenses. I am by no means a millionaire, I just save a decent chunk of my income every month and make a decent salary. I only have one major liability (mortgage) and that's only like $600/mo. If I don't make any major purchases (i.e. car) and don't have any serious health troubles, I could easily continue my current lifestyle (food, clothes, entertainment, gadgets, etc).
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You are a rare breed. Good on you!
 
A few months but it doesn't worry me. I have access to a cabin and I know how to hunt. I can live for 20+ years there if I had to without having to earn another cent.
 
Modelworks said:
A few months but it doesn't worry me. I have access to a cabin and I know how to hunt. I can live for 20+ years there if I had to without having to earn another cent.
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Man, I so wish I could do this. I'm way too much of a pussy. 🙁

KT
 
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