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Comment by anexprogrammer | Hacker News Reader

Imagine really bad shit happened, your company went bust. You had to take a 30% (or 40%) pay cut. Could you survive?

OK, now take that 30% and transfer it into a savings account before anything else. It doesn't exist. Your pay is what's left. Now budget expenses and life.

Start living when you have a little insurance. Even six months buys some peace of mind.

If you have a family you have to modify a little to ensure they can have a tolerable life meanwhile, and a little time out etc. but you get the idea.

If you keep this idea going even in good times you'll be buying rental properties with it eventually.

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Yeah... like I like this idea. I just don't know how sustainable it is. I am decent with money (Almost 0 debt, almost 1 month of expenses, etc) but I don't really feel like living in self-inflicted poverty.

I have done it before and I know I can do it, but I don't see the point in inflicting abject poverty on myself just so I am vaguely protected.

I understand what you are coming from, but really isn't for me. (Maybe when my income grows / I don't live in NYC...)

You're talking about the difference between perceived poverty relative to your previous lifestyle versus actual poverty where you're living paycheck to paycheck because you didn't have a sufficiently large paycheck.

Every generation seems to have a big economic shock it has to weather through (or two or three). I think living on a percentage of your income with 6-12 months' salary in the bank is the only smart thing to do when you're able to do it.

If you only have one month worth of expenses saved you are terrible with money. Planning for your financial future is one of the most important things you can do.

If you're in the tech industry you can afford to save 30%+ of your income. We have a it a lot better than other sectors and make good money.

Take a small pay cut now for a large payout in the future. Don't sacrifice your future for a little fun now.

Sorry to bring the mood down, I have one moderating life experience that is relevant here.

Sometimes while you are doing this you will die.

I had two really good friends who died in their early 30's, both would have made great family men, both saved carefully, got an education at great personal cost, one served in the military, both were austere and diligent in their lives. Their parents did not seem consoled by the large cash sums that they received from these men's estates.

I think that both of them would have been well served to have lived a little more before their time was up. What's the value of amazing maths skills and financial security when you are dead?

I'm sorry for your loss. I can see how that would incorrectly skew your perspective. The chances of dying in your 30's is very low for most people. Spending your money as if that's going to happen is foolish.

In our industry you can save enough money through your 20's and 30's to retire in your 40's. It makes far more sense to do that then to plan on dying in your 30's.

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