I am 25 and fairly new to investing, and haven’t focused much on it since I’ve been busy saving. I finally saved 6 months worth of expenses! The reason why I post is: - There will possibly be more layoffs at T-Mobile, and it seems there is no rhyme or reason for how people are chosen, so I’m proactively preparing - It seems to take people months to get a new job, so maybe a year’s worth of expenses is ideal? - Despite the possibility of future layoffs, I want to invest in the long game as it will guarantee a return, and I hope to own a home in 5-10 years. I am caught between wanting to start investing in index funds as much as possible, but there is a possibility I could lose my job at any moment. This is my first job after college. TC: 125k YOE: 2.5 #investments #personalfinance #layoffs #savings
Also stay on a month to month lease if you can, so if you need to break it’s easy to downsize immediately. I live in a studio that’s too small but better than being locked in a lease during uncertain times. Having MTM lease and 8 months saved so far is keeping my mental health stable and not stressing about financials.
Start investing.. and when u are 5 years away from retirement, start applying the three bucket strategy, which will require much more cash..
Thank you for commenting! Any reason why you chose 5 years and not earlier?
Thank you! I currently have all of my emergency fund in a money market account at 4.15% at Ally Bank. I would search for higher rates, but some of these banks are super sus, so I don’t bother. Taking into account this info, should I keep doing what I’m doing or should I still consider money market funds?
Fidelity has pretty much the same offerings a Vanguard. Use your Tmo fidelity account and you don't have to bother with opening yet another account. Also, you'll get up to $1000/week before taxes from unemployment if you get laid off. You can check with the unemployment office. Can you pay your bills on that for the six months you can receive benefits?
Yeah that’s doable! I kind of forgot unemployment existed tbh. Do you think the lower expense ratios of Vanguard funds make it worth it to open Vanguard accounts?
Both vanguard and fidelity are great for low cost index funds. You're splitting hairs comparing a basis point here or there. And sometimes fidelity has lower fees. Look at the funds you're interested in and just buy one 👍
as a fellow T-Mobile colleaue, I would recommend to save 12 months of emergency funds as our skills are blunt compared to competition in case of layoff. It might take a while to get another gig.
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Good times 6 months should be good, bad times should be 12 months I guess.