Economic downturn happens every now and again. That's expected. You cannot change it. What a software engineer should have done was to be prepared for it. I don't see any valid reasons for him to end up in a supermarket job. 2000s crisis lasted a couple of years at the most. He should have had the means to survive comfortably the temporary time period when he was without an income.
The lesson is: Be prepared as if you are going to be out of job anytime. That's a typical mistake of US based people. US is not a social country, you are on your own when shit happens, you should better be ready for the worst case scenario at all times.
Your monthly income is not for you to spend monthly. It's for today and future.
That's assuming one has the ability to sock away enough savings to ease the burden of any long-term unemployment. The reality though is that millions of US citizens do not even have this option, even knowing full well that they need to be saving more. They simply cannot because the cost of living is too great and wages are too low. The fact that the US is "not a social country, you are on your own when shit happens", while correct, is big a problem for all citizens and it amazes me how pervasive this cowboy mentality has become, especially amongst the populations that are living month-to-month and which would greatly benefit from strong social contracts.
We're talking about tech jobs here, not minimum wage jobs that don't provide a living wage.
I think the point is really that most people conflate their NEEDS with their WANTS and end up living hand to mouth because of it. If you are a tech worker in the USA and you don't have extenuating circumstances that eat up large portions of your income (like child support, back taxes, massive student loan debt, etc) and cannot be avoided, then you should be able to limit your monthly expenses to be able to save money. The truth is though, that most people "need" the latest phone, the latest computer, a new car (because apparently no other cars are "reliable"), etc. In my experience just making small changes to your lifestyle can have a massive impact on your ability to save.
I can attest to that. I came to the US half a year ago on a work visa (not H1B) from an European country, with dependents in tow. Earning modest tech salary I was able to "sock away" more earnings in that time than I would be able to in my home country in three years. My observations is that people here simply live a lifestyle that matches their income.
Yeah, people always question why I'm not living bigger than I am. They don't understand putting half their income into savings instead of spending it on the now. The part that gets me is that when bad times come, people will look at my like I'm privileged and should share, forgetting that they already benefited from their extra earnings that they choose to spend instead of save. (To be clear, I'm talking about people who could've saved but didn't. I am not talking about the people who, through no fault of their own, never had a chance to save.)
I think your advice is not generalizable to "tech workers" in general, whose salary ranges, cost of living, family situations, etc. are all over the map. Come out to San Francisco and try to support a family of five on a $90K tech salary. Congratulations if your particular situation allows you to save for unforeseen events in the future, though.
OK, live in a low cost of living area and make a low salary. The point is, I wouldn't assume that every person with a tech job is able to save at a rate that allows them to deal with being laid off for months or years. Everyone's situation is different.
I don't see any valid reasons for him to end up in a supermarket job.
Generalize much? You know based on the fact that he "worked in software" that that he had no valid reason to need a "supermarket job"?
I hope no awful life event happens to you, but when things are going great, it's easy to say others shouldn't be struggling. Then something happens. Maybe you get sick. Or a close relative needs financial assistance. Or you get laid off. I'm fortunate enough to enjoy a comfortable living, but I've been in some really shitty situations in the past, and let me tell you- anything can happen to anybody. If you're doing well, be grateful, but don't assume everybody is in the same situation you are.
I agree, especially with regards to medical situations.
If I didn't have health insurance and had a major medical problem -- first thing I'd do would be to arrange a plane ticket to a medical tourist country. Extended diagnostics + care + treatment (especially without managed insurance prices) in thr US is ridiculously expensive.
And honestly? I'd be willing to go from 98 percentile to 9X percentile care to trim that.
For a significant fraction of medical problems, that is a great strategy. For a large fraction of medical problems, it will be a combination of friends and family close by keeping you alive, or at least, tended to well enough that you still want to live. Long term care in another country probably won't have that support, which is a really big problem long term.
In the fullness of time you will come to experience many surprising changes in life that come out of nowhere and are not in your control and you will have a very different view of this.
The lesson is: Be prepared as if you are going to be out of job anytime. That's a typical mistake of US based people. US is not a social country, you are on your own when shit happens, you should better be ready for the worst case scenario at all times.
Your monthly income is not for you to spend monthly. It's for today and future.
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