If I got my first job at 18 making $15,000 per year do I save 100% of my salary for the year, or do I take out a low interest loan for $7,500 so I can sock half my paycheck into an emergency fund and live off the other other half?

When is it safe to contribute to a 401k? I worry about contributing because that cuts into my ability to access liquid cash in case of an emergency.

_________________

At the age you stop buying Starbucks and avocado toast

_________________
Fare you well, fare you well
I love you more than words can tell
Listen to the river sing sweet songs
To rock my soul

Bad idea...both are delicious.

_________________
“Mr. Trump is unfit for our nation’s highest office.”- JD Vance
“My god, what an !diot.”- JD Vance tweet on Trump
“I’m a ‘Never Trump’ guy”- JD Vance

With these questions, you would be better served saving up money for a bus ticket to Seattle so you can steal sandwiches and not get arrested for it.

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!

You need to get money into the 401k on the first day. Most plans allow you to tap into it penalty free for buying a house, paying for school, medical emergencies, and a few other hardships. If you put 10-15% in on day one you probably won’t even notice.

_________________
Mulli is Howard Stern in his prime compared to Haugh.

Hopefully you have $15k saved by now.

_________________
Why are only 14 percent of black CPS 11th-graders proficient in English?

well, we know you don't spend your money on clothes !

There was a funny SNL skit years ago with that cable news money planning lady. She had a guy on who was homeless and she kept telling him he'd have to dip into his savings.

The best thing to do with a Starbucks coffee is to dump it down the drain, then go get a real cup of joe from Dunkin Donuts.

Large or XL of course

_________________

Never ordered a grande in my life

I'm kind of like George Bailey in that I'm worth more retired than working.

_________________
O judgment! Thou art fled to brutish beasts,
And men have lost their reason.

I don't like the idea of having to incur income tax liability to pay for emergency medical services. For example, if I have $10,000 in uncovered medical expenses I want to use my emergency fund to pay that off. I'd take $10,000 of the $15,000 in savings and use that to pay the medial debt. But now I need to replenish my emergency fund so that it matches 12 months salary. Problem is that now I make $30,000 per year. So instead of saving up $10,000 to get back to $15,000, I have to save up $25,000 to get to that $30,000 threshold. I have no idea when it is safe for me to contribute to the 401(k) because I feel like I'm constantly having to play catch up with my emergency fund.

_________________

I assume it's not real numbers but someone making $15k a year isn't going to have $15k in savings. Life is too expensive for that.

However, the thing you are missing is that it isn't that hard to do if you double your income($15k to $30k) but you keep your spending habits the same.

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!

This seems irresponsible.

_________________

First off, it's a year's worth of expenses, not a year's worth of salary. If you are paying about 18% of your gross salary in taxes (assuming you are in the 12% federal bracket and Illinois), and you typically save 12% of your gross pay, then your year of expenses is 70%. 70/12 means 6 years to save up that much, assuming your pay and your tastes don't go up. There's also inflation, but for now let's ignore that as it's not uniform but really depends on how you spend your money (for example, Taco Bell prices have had massive inflation in the last 10 years)

The question is: what adjustments to your lifestyle would it take to save 24% instead of 12%? Less eating out? Smaller living space? An older car? Not that there's anything magic about 24, 12, or any other number. It's all about balancing the stress of future risk vs the stress of immediate frugality.

Go spend some time on r/financialindependence and r/Bogleheads on Reddit. Don't take it all as gospel, just consider how you feel about what people are espousing.

My goal was to retire at 55 because I don't know how my health will hold up after 70. At 30, I had barely any net worth, just 40k in a 401k and about $15k in debt. I'm not totally retired because I had obligations for my father which I didn't expect, but I'm awfully close and only work a couple of days a week. So even with a late start it can be done.

_________________
"When people want their version of the truth, they go find it, no matter how baseless their beliefs." -- Ken Rosenthal

If I'm making $15,000 per year I have to dig out of an even bigger hole than I thought. FML.

_________________

If your expenses are greater than your income, something has to change.

_________________
"When people want their version of the truth, they go find it, no matter how baseless their beliefs." -- Ken Rosenthal

The story which inspired me was from the old FatWallet Finance forums maybe 15 years ago. A guy who worked a routine desk job with the city of LA who had more than one year's gross income's worth of debt, mostly credit cards and a small car loan. He worked with other users on there to lower his APR through various free balance transfers (loophole now closed) and a new credit card with 0% on spend for the first year. Was able to start throwing the saved finance charges and more saving at his debt and was totally debt free in about three years. He posted an update every month. He symbolically wrote his final check to pay off his last debt on a July 4. It was very impressive, especially living in a very high cost of living city where a car was a necessity.

_________________
"When people want their version of the truth, they go find it, no matter how baseless their beliefs." -- Ken Rosenthal

you can borrow up to half of your 401k in two separate loans, typically over a 5 year term.

_________________
@audioidkid

Check with your company's Plan Document first. Some companies only allow 1 loan outstanding at a time.

It is at the company's discretion.

But a 401k loan is a good option in a situation where you need funds. You can usually expect your funds within a week of application.

You pay interest but it is paid back to your account and typically your fee is only the loan fee, a one-time charge, usually in the $60-100 range that is figured into the loan payment, again, depending on the company elections.

_________________
You know me like that.

Yes, only making $15k is irresponsible.

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!

Methinks Spiral is trying to use his incredulity to make a point about livable wages and the precarious financial position MANY live in.

did anyone yet offer the advice to move?

If not: move

_________________
O judgment! Thou art fled to brutish beasts,
And men have lost their reason.

To where? Haiti?

_________________
Mulli is Howard Stern in his prime compared to Haugh.

Yeah, but we are just ignoring that.

_________________
"When people want their version of the truth, they go find it, no matter how baseless their beliefs." -- Ken Rosenthal

Really? I was taking his post at face value and figuring if I ever needed to divorce my wife I'd do it in Kane County since the attorneys out there charge so little.

_________________
Anybody here seen my old friend Bobby?
Can you tell me where he's gone?
I thought I saw him walkin' up to The Hill
With Elon, Tulsi, and Don

i dont have any savings. i have happiness. any day i could die and it would be with a smile.

_________________
the world will always the world. your entire existence is defined by your response.

How much can someone really make, even as an attorney, if they sit on this site all day aggressively shitposting?

I work smart, not hard.

_________________

McHenry County if I'm not mistaken. Would be a shorter drive for you.

_________________