Financial preparedness for an emergency

This is not about politics, just personal finance.

I remember being 18 living on my own. I was working 3 jobs (1 full time, 2 part time), barely making ends meet. Without a paycheck or two I would have been in serious trouble.
Some on ATS think that if you do not have savings to handle a financial emergency that you are either irresponsible, lack intelligence, or many other choice words that I've read lately.

In 2008 my family weathered the perfect storm, severe illness, with huge medical bills, job loss and a move. We were financially prepared and were able to live 2 years without pay. Luckily it did not last that long.

The 18 year old me, and the 2008 me, are the same person. Some on ATS do not understand that.


I know it's not only young people that aren't financially prepared for an emergency.
I've known many many adults that have always done the right thing, hardworking, they save, they prepare, then something happens. Illness, series of joblessness. Sometimes like us it is a perfect storm that lasts too long. No matter how much you save, sometimes it isn't enough.

Right now I know a couple that works but their child has been diagnosed with a rare illness, they have insurance, they both work. It is the traveling to a specialized hospital in another state that is killing them financially. Are these people irresponsible, are they losers? This is one example, there are many many other examples. How many people do you know that have been devastated by cancer? There is a reason we are called the sandwich generation. Many are taking care of both children and ageing sick relatives.

So ATS, I ask you, before you belittle anyones finances think about your life, and was there EVER, ever a time in your life when you would have been struggling without a paycheck? Or did you have 6 months saved up at birth? I for the life of me don't understand how people are making fun of people that are actually working! These are the responsible people, they are working! I have 100000X more respect for them than people that refuse to work.

I for the life of me don't understand how people are making fun of people that are actually working!

It’s just an easy way for people to not think about it. “Oh, it’s their fault if they can’t live without being paid.” “They should have had more savings!”

It’s easier to blame the people suffering than it is the people who are responsible for the shutdown. Especially when you’re talking about the ultra-right wing extremist view that most people on ATS subscribe to.

“I got mine, so screw you!” —That’s it in a nutshell, and it’s why the country is the way it is right now. Empathy has taken a back seat to money. When that happens, the end isn’t far away.

When people take responsibility for themselves they don't depend on the state.

The state doesn't like that, because if you aren't dependent on it you are harder to control.

That is why personal responsibility is attacked at every opportunity.

a reply to: underwerks

While I'll not disagree, let's not pretend that political figures and pundits don't exploit every drop in attempt to bolster their views.

On topic, you simply can not absolutely prepare for the future.

Moreover, typical working class could rarely cover the cost of a life changing medical condition.

Personally, I try to keep enough to replace things like hot water heaters, furnaces, vehicles etc. Food, and breathing room on living expenses.

THANK YOU for posting this.

Everyone has been turning this into a political argument. It is not that.

Some people do everything right and bad things happen to them. Not every one is fortunate enough to have thousands in savings.

I will not generalize everyone without a savings account into an irresponsible, leach on society. I feel for anyone who through no/very little fault of their own will not see their next paycheck on pay day.

a reply to: JAGStorm

its the gung ho trump supporters trying to minimize their situation and shift blame to them.
this way they defend trump.

very simple

Me and my husband were just talking about this last night. We were wondering why everyone blames the government but never take ownership of the fact that perhaps they didn't bother to put anything away. Maybe they've been spending way beyond their means.... People need to take ownership! It's like when someone makes $50k a year and the bank tells them they prequalify for a property that costs way above their means. Almost every time when the consumer can't afford their mortgage they blame the bank! It's just silly!

originally posted by: Skorpiogurl
Me and my husband were just talking about this last night. We were wondering why everyone blames the government but never take ownership of the fact that perhaps they didn't bother to put anything away. Maybe they've been spending way beyond their means.... People need to take ownership! It's like when someone makes $50k a year and the bank tells them they prequalify for a property that costs way above their means. Almost every time when the consumer can't afford their mortgage they blame the bank! It's just silly!

Oh no doubt there are people that make very unwise financial decisions, but we can't lump everyone in there. We can't even begin to know everyone's situation so I'm not going to assume they are all irresponsible.

There are people that are retired Coast guard, they might not get their retirement pay. It was approved for January, but not for February or March. They are very worried.
Some of them might have a little other nest egg besides their retirement, but that will go fast if they can't work to replace it. Should they take ownership, are they living beyond their means? No

That is 50 Thousand people right there. Yes 50K retired coast guard members!

www.military.com...
"The 50,000 annuitants on the Coast Guard's rolls will see their first missed check Feb. 1 if a budget agreement is not reached or another arrangement made, a service spokesman confirmed to Military.com."

originally posted by: Skorpiogurl
Me and my husband were just talking about this last night. We were wondering why everyone blames the government but never take ownership of the fact that perhaps they didn't bother to put anything away. Maybe they've been spending way beyond their means.... People need to take ownership! It's like when someone makes $50k a year and the bank tells them they prequalify for a property that costs way above their means. Almost every time when the consumer can't afford their mortgage they blame the bank! It's just silly!

not having a savings or not budgeting your money does not mean it is ok to not get paid for your work.

that is what i am talking about.
youre minimizing the situation.

dont matter if they have thousands in the bank and are fine.

they need to be paid

a reply to: JAGStorm

Yes, life sometimes throws you curve balls. However, there is a huge difference between say going broke because you unexpectedly get hit with $100k in life saving medical treatment and going broke because you missed one paycheck.

I feel bad for anyone who loses a job or income. However, that does not necessarily absolve them of any personal responsibility to prepare for unexpected events / emergencies. People get laid off all the time and no one is running around publishing sob stories. They find new jobs and figure it out. Govt workers aren't special.

The vast majority of people simply do not take responsibility for their financial decisions because they are short-term thinkers.

No one who has been working for any length of time should be having financial problems from missing one paycheck. You should have some cash savings on hand. At worst, you can borrow against your 401k / retirement plan. You most certainly shouldn't need to run to a pawn shop.

People simply live for the moment and they don't save for a rainy day.

originally posted by: TinySickTears

originally posted by: Skorpiogurl
Me and my husband were just talking about this last night. We were wondering why everyone blames the government but never take ownership of the fact that perhaps they didn't bother to put anything away. Maybe they've been spending way beyond their means.... People need to take ownership! It's like when someone makes $50k a year and the bank tells them they prequalify for a property that costs way above their means. Almost every time when the consumer can't afford their mortgage they blame the bank! It's just silly!

not having a savings or not budgeting your money does not mean it is ok to not get paid for your work.

that is what i am talking about.
youre minimizing the situation.

dont matter if they have thousands in the bank and are fine.

they need to be paid

They will get paid...

Most people don’t rely on the Government for things, but I agree that sometimes people are in a bad position through no fault of their own. All we need to do here is to allocate the relative pittance to the border wall and the problem will be solved. This is unltimately the fault of obstructionist Democrats playing politics.

a reply to: Edumakated

People get laid off all the time and no one is running around publishing sob stories. They find new jobs and figure it out. Govt workers aren't special.

Do you remember the recession of 2008? Maybe you were too young. There were tons and tons of stories of people getting laid off (and they weren't government workers). The reason both are newsworthy is because it is happening to large groups of people.

You should have some cash savings on hand. At worst, you can borrow against your 401k / retirement plan. You most certainly shouldn't need to run to a pawn shop.

I agree with the rainy day fund, but don't agree with the 401K advice. I've used the Coast guard as an example several times. I use that because those are the friends I know that are dealing with this shutdown and aren't getting a paycheck right now. They can't take out a 401K because they don't have one! You also don't know if those people do have a rainy day fund, but are anticipating this to last long and are being proactive by selling what they can now.

originally posted by: JAGStorm
a reply to: Edumakated

People get laid off all the time and no one is running around publishing sob stories. They find new jobs and figure it out. Govt workers aren't special.

Do you remember the recession of 2008? Maybe you were too young. There were tons and tons of stories of people getting laid off (and they weren't government workers). The reason both are newsworthy is because it is happening to large groups of people.

You should have some cash savings on hand. At worst, you can borrow against your 401k / retirement plan. You most certainly shouldn't need to run to a pawn shop.

I agree with the rainy day fund, but don't agree with the 401K advice. I've used the Coast guard as an example several times. I use that because those are the friends I know that are dealing with this shutdown and aren't getting a paycheck right now. They can't take out a 401K because they don't have one! You also don't know if those people do have a rainy day fund, but are anticipating this to last long and are being proactive by selling what they can now.

Yes, I remember 2008. I was on the front lines as I work in housing industry. However, the point still stands, you have to save for a rainy day. Heck, I remember guys in my business who were making $400-$500k/yr and they went broke because they over extended themselves when the housing market crashed. I remember some older guys telling these young 20 something brokers who were buying BMW M3's, etc to save their money, pay off their houses, etc while times were good. Most didn't listen as they were too busy keeping up with the Jones.


I also survived the 2000/2001 dot com implosion. Same thing.... saved money for a rainy day. I remember putting off buying a house down payment because I didn't want to sink all my cash into the home just in case I got laid off.

Finance is pretty simple.

Spend less than you make. No you don't need a brand new 72" flat screen LED tv, no you don't need a brand new iphone every year, no you don't need the top clothing brands every year, no you don't need to buy a 40,000$ car to keep up with the jones', no you don't need to eat out all the time, the list could go on for ages.


Live below your means, and put your money in a useful investment instead of servicing the interest on your credit cards or car payments.

originally posted by: Edumakated



They will get paid...

but they are not
as in currently

thats the problem

originally posted by: eXia7
Finance is pretty simple.

Spend less than you make. No you don't need a brand new 72" flat screen LED tv, no you don't need a brand new iphone every year, no you don't need the top clothing brands every year, no you don't need to buy a 40,000$ car to keep up with the jones', no you don't need to eat out all the time, the list could go on for ages.


Live below your means, and put your money in a useful investment instead of servicing the interest on your credit cards or car payments.

for sure

do all that

but you should still be paid for your work.
not eventually at some point.

the same time as always as agreed

remember guys in my business who were making $400-$500k/yr and they went broke because they over extended themselves when the housing market crashed.

I know a lot of people in the banking industry. You'd think they would be good at money management, personal finance, but I found they were the absolute worst! We are talking bankruptcy, foreclosure, checks bouncing. I'm not talking one person either or low wage earners. Pretty much everyone that I know that works in banking! It is so weird, I guess it is like the dentists kids that have cavities.

originally posted by: TinySickTears

originally posted by: Edumakated



They will get paid...

but they are not
as in currently

thats the problem

Government is shut down... why would they get paid? They ought to be thankful they even get back pay considering they weren't working.

In the private sector, companies shut down or layoff all the time. Again, govt employees aren't special.

If anything I think we are seeing that a lot of these employees are "non-essential". The world has not ended. The sun and moon still rose.

originally posted by: TinySickTears

originally posted by: Edumakated



They will get paid...

but they are not
as in currently

thats the problem

I think right now people think oh' one or two paychecks no big deal. If this thing drags out we'll be talking a different story. It will start rolling down to many more people than just the government workers.