You have to consider that not that few expenses can wait. Think of the new paint on the walls, or the new floor on the staircase. Or the new table, etc.
Worst case you'll be stuck in a minimum-wage like lifestyle. Best case you're on your yacht in the Caribbean.
while I agree I can also see cases where you need things not later, but now but you'll have the money later not now. e.g. moving to a remote village where you really need a car or buying that compute for data processing or rendering you need for your freelance work
My current plan is to move towards contracting work. Therefore, if there is time between contracts, instead of dwelling on loss of income, it essentially gives you time to work on your hobbies.
In your situation you'd need to ensure you are well ahead of your mortgage.
If you are living paycheck to paycheck. You can not afford to lose your job, or not have one while you are looking for another one. This economy should make you immediately do anything and everything in your power to quickly amass at least 3 months of living expenses. This will give you that safety net necessary to be able to find a new gig if the need arises. You will be amazed at how much stress it can take off you and your attitude towards your job.
hunker down and save as much money as you possibly can. it will take 3x longer than you think and you will need the savings.
literally this is your most important job. build a savings buffer of 3 years, at least. the bigger the buffer the less you will feel tempted to abandon it.
Something you should do, assuming that your salary is sufficient to allow you to do so, starting after month 3-6 of employment. Live on a budget one level below your means, and build that to two levels over time. Add some months of savings, again if your salary allows, and you should be save.
Imagine: you’re in the middle of crunch time at work, your wife is pregnant, you receive some notice that the rent is going to increase ten folds in two weeks, good luck.
Of all the ducks, I think the number of doors on the car isn't that high on the priority list :P
However, ensuring that you can still afford to pay all the bills for months --or years, preferably-- on end in the event that your source of income disappears... that seems to be the most important of the ducks. Whether it's a home you own or six months' mortgage/rent is just details.
True, but at the same time, you are insulated against some sudden shocks. I always try to have enough money to live on for about a year, so that I don't panic and start making bad decisions if business goes wrong for a month or two.
It is not that people don’t know this and spend all they make. Not all contractors make enough to save for an emergency fund easily. Independent of all of this, every experienced contractor knows that sometimes there will be dull patches and you save for that . However it is not always possible to do so, and you may have saved for 2weeks or 2 months and it may not be enough the economy might limp for 6months or a year .
Also a close reading of the article shows the intro dude was getting over twice the income of his fellow cafe residents.
So if overtime goes away and they only need him 3 days/week instead of current 6 days/week, and maybe he loses his temp job entirely for a few months, or gets stuck at 1/2 average income instead of twice for awhile... he could be homeless and penniless on the street in just a couple months. So saving up a very large cushion sounds wise to me.
A long time ago I went into my first bachelor pad expecting to spend X in the first month and ended up spending 2X. Things add up!
Also in the article is advice “Make sure you have a plan if things go bad. Make sure your savings are in order, brace for impact to cover for a while.”
I know lots of people making 6-figures who would be in trouble inside of a month. For most of them, that’s a choice where they have other feasible options.
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