# Can you pay for a $1000 emergency expense without borrowing? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [August 26, 2011, 2:22pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181 "2011-08-26T14:22:17Z")\ **Posts on this page:** 20\ **Page:** 4
**Author:** ![Unintentionally\_Blank](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/unintentionally_blank/32/5418_2.png) [@Unintentionally\_Blank](https://boards.straightdope.com/u/Unintentionally_Blank)\ **Post date:** [August 26, 2011, 11:17pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/61 "2011-08-26T23:17:08Z")
> [@bump](#): > > But that’s what I’m talking about- you’ve got 2 raises in 10 years, and your health care has gone south, and your employer is jerking you around on your retirement. > > This death of a thousand cuts sounds like one you’re allowing to happen by staying in the same job. > > Unless you’re in some field where your current employer is literally the only game in town, you ought to get a different job; if you’ve been somewhere 10 years, you probably have enough experience to be valuable to someone else in the same industry, or depending on the job, in another industry. Nice armchair analysis. I’m working the same paygrade as when I hired in in 1996. It’s a government position. The only reasons I’m _still_ here is that there’s a retirement (being chipped away at), and the kids are 8 years old. Due to changes in the system, if I leave, it’ll be permanent, it will be impossible to be rehired with the benefits I have now. The plan is to bail in 5 years when I’m fully vested and the kids are old enough to have a life of their own. That said, the wife is under-paid, I’m under paid, and things have steadily gotten more expensive over time. Waffiling about ‘how I could go earn more elsewhere’ isn’t worth the paper it isn’t printed on. I am grateful I’m employed. I’m grateful 15 years of government service has put a roof over my head. That doesn’t change the FACT that shit’s gotten more expensive, we’re earning less than we did a decade ago, and I’m a C level security professional making Webmaster money. ---
**Author:** ![Spiny\_Norman](https://avatars.discourse-cdn.com/v4/letter/s/9de0a6/32.png) [@Spiny\_Norman](https://boards.straightdope.com/u/Spiny_Norman)\ **Post date:** [August 26, 2011, 11:25pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/62 "2011-08-26T23:25:07Z")
> [@MandaJo](#): > > I do think that with cars, specifically, a lot of people think of a car payment as like an electrical bill: it’s an inevitable part of life and just part of your fiscal reality. I wasn’t crazy about taking out a car loan, but when they offered 0.9%, I pretty much would’ve felt a fool _not_ taking it. Answered yes to the poll, btw. ---
**Author:** ![hogarth](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hogarth/32/1773_2.png) [@hogarth](https://boards.straightdope.com/u/hogarth)\ **Post date:** [August 27, 2011, 1:13am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/63 "2011-08-27T01:13:34Z")
Coincidentally, my roof started leaking this week; we just got it reshingled today and it cost a lot more than $1000. ---
**Author:** ![GuanoLad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/guanolad/32/42_2.png) [@GuanoLad](https://boards.straightdope.com/u/GuanoLad)\ **Post date:** [August 27, 2011, 1:36am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/64 "2011-08-27T01:36:22Z")
Today, yes. A few months ago, no. Hopefully I can forever after, though. ---
**Author:** ![cochrane](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cochrane/32/10441_2.png) [@cochrane](https://boards.straightdope.com/u/cochrane)\ **Post date:** [August 27, 2011, 1:53am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/65 "2011-08-27T01:53:04Z")
Hell, no, I couldn’t come up with $1000 in an emergency. I’m unemployed, on a fixed income. Won’t elaborate beyond that. But if something came up where I would need a thousand bucks on short notice, I’m boned. ---
**Author:** ![Wesley\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wesley_clark/32/20581_2.png) [@Wesley\_Clark](https://boards.straightdope.com/u/Wesley_Clark)\ **Post date:** [August 27, 2011, 2:46am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/66 "2011-08-27T02:46:34Z")
Yep, no problem. But I don’t think this is a good cross section, it is currently at 83% yes based on the poll (which is far higher than the % who are writing the posts) vs 36% yes in the article. FWIW, irrelevant of whether you have 1000 or 5000 or whatever in the bank, most of us are one major chronic illness away from losing everything. Even if you have insurance, there is no guarantee they will cover treatment or you will be able to remain employed and continue to be covered by group insurance. So this question is kind of irrelevant when you factor that in. Yeah, I can afford $500 or $1000 or $2000 (whichever article you use) without going into debt. But if I am sick and my insurance refuses to cover me it won’t matter either way. ---
**Author:** ![BMalion](https://avatars.discourse-cdn.com/v4/letter/b/e274bd/32.png) [@BMalion](https://boards.straightdope.com/u/BMalion)\ **Post date:** [August 27, 2011, 3:02am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/67 "2011-08-27T03:02:36Z")
> [@Dangerosa](#): > > As volatile as the market has been and as uncertain as the economy is, many experts are saying that you should double that. I saw the writing on the wall last year, so I have about 10 months saved up. Good thing too, as I was terminated last week. ---
**Author:** ![kushiel](https://avatars.discourse-cdn.com/v4/letter/k/bbce88/32.png) [@kushiel](https://boards.straightdope.com/u/kushiel)\ **Post date:** [August 27, 2011, 5:12am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/68 "2011-08-27T05:12:49Z")
Yes, but that’s because my parents have been very generous. I don’t have a car loan or student loan to pay off and I’m a renter. I need to start looking more closely at my finances for when this car needs to be replaced. A mortgage is definitely out of the question for at least 5 years with the housing market as it is right now here. ---
**Author:** ![Rala](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@Rala](https://boards.straightdope.com/u/Rala)\ **Post date:** [August 27, 2011, 5:16am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/69 "2011-08-27T05:16:43Z")
I could, but just barely. I’d have maybe $100 left afterwards. ---
**Author:** ![elfkin477](https://avatars.discourse-cdn.com/v4/letter/e/a9a28c/32.png) [@elfkin477](https://boards.straightdope.com/u/elfkin477)\ **Post date:** [August 27, 2011, 6:17am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/70 "2011-08-27T06:17:20Z")
> [@MsWhatsit](#): > > Yes, but this is a recent change for us, mostly due to increased income and decreased preschool fees in the last year or two. I’m the other way 'round. For the first time in several years, no. A reduction in contracts at work this year (so lots of time laid off) has eaten up my savings this year. ---
**Author:** ![chizzuk](https://avatars.discourse-cdn.com/v4/letter/c/e36b37/32.png) [@chizzuk](https://boards.straightdope.com/u/chizzuk)\ **Post date:** [August 27, 2011, 7:24am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/71 "2011-08-27T07:24:48Z")
I’m a full-time grad student on a very limited budget, but I have a small assistantship stipend and an emergency savings account and I could swing $1000. That’s the minimum I’m comfortable keeping in my checking account and I treat it like $0. The fact that the account starts charging fees if the balance goes below that is another good motivator. ---
**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\ **Post date:** [August 27, 2011, 4:31pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/72 "2011-08-27T16:31:07Z")
> [@Unintentionally\_Blank](#): > > I’m a C level security professional making Webmaster money. If that’s the case, you can command a much higher salary than “webmaster money” in the private sector, and you CHOOSE not to. So quit whining about your death of a thousand cuts if it’s something you’re continually choosing to endure. Again, perfect example of what I was talking about earlier- you don’t HAVE to be as financially uncomfortable as you are, you’re just choosing to be that way. ---
**Author:** ![Unintentionally\_Blank](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/unintentionally_blank/32/5418_2.png) [@Unintentionally\_Blank](https://boards.straightdope.com/u/Unintentionally_Blank)\ **Post date:** [August 27, 2011, 6:23pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/73 "2011-08-27T18:23:00Z")
I didn’t say there weren’t benefits, I’m saying the money doesn’t go as far as it used to. When I started, the Salary wasn’t competitive, but the benefits were good. Now, the Salary isn’t competitive, the benefits aren’t good, but point to any other job with a pension and (now with 15 years in) 21 days a year of annual leave. But those benefits were ALSO there, 15 years ago. Only now, the salary REALLY hasn’t kept up with inflation (which is what a COLA adjustment is. it’s not a raise, it’s keeping up.) So, lets do the math: 1. Pension is 3/4 earned 2. There’s quite a bit of leave accrual 3. I’m making 30% less than I used to (adjusted for inflation) 4. I get to go home to the kids at 40 hours a week. I can also bitch about the morale, the IT staff is 60% of what it was, three years ago. The people that CAN leave, HAVE left. I’m here because it’s the responsible thing to do, and it’d be stupid to throw away the remaining two benefits. I only choose to do it because it’s stable, and it keeps the lights on. (and I don’t much give a rats ass if the decisions meet with your approval or not. I can choose, tactically, to stay here AND bitch about it, too. It’s not an either/or thing. ) ---
**Author:** ![Queen\_Tonya](https://avatars.discourse-cdn.com/v4/letter/q/4491bb/32.png) [@Queen\_Tonya](https://boards.straightdope.com/u/Queen_Tonya)\ **Post date:** [August 28, 2011, 10:40am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/74 "2011-08-28T10:40:30Z")
We could easily come up with it. I have a good-paying job with plenty of paid overtime available, since my husband was downsized last year I’ve been working like crazy and socking money away for his tuition. I am the only member of my family that can do that, however. Also the only one of my friends. Most of them are barely hanging on, ricocheting from crisis to crisis and praying the furnace doesn’t break down. To blithely assume that all of those adults are choosing to stay in that situation is… short-sighted. ---
**Author:** ![Ronald\_C.Semone](https://avatars.discourse-cdn.com/v4/letter/r/cc9497/32.png) [@Ronald\_C.Semone](https://boards.straightdope.com/u/Ronald_C.Semone)\ **Post date:** [August 28, 2011, 11:59am UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/75 "2011-08-28T11:59:02Z")
Aren’t we leaving out an important factor here? One poster mentions being a graduate student, but I don’t think anyone else talks about age. I suspect not too many of the 15 and 16-year olds who post on the SDMB have a $1000 lying around. But then again, maybe they didn’t participate in the poll. ---
**Author:** ![BMalion](https://avatars.discourse-cdn.com/v4/letter/b/e274bd/32.png) [@BMalion](https://boards.straightdope.com/u/BMalion)\ **Post date:** [August 28, 2011, 3:25pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/76 "2011-08-28T15:25:51Z")
Good point, I’m 50 years old. I answered “yes”. ---
**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\ **Post date:** [August 28, 2011, 4:24pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/77 "2011-08-28T16:24:22Z")
> [@Unintentionally\_Blank](#): > > (and I don’t much give a rats ass if the decisions meet with your approval or not. I can choose, tactically, to stay here AND bitch about it, too. It’s not an either/or thing. ) That’s fair. All I was trying to say is that there are a lot of people out there who seem content to languish in one job or another, and then gripe about how badly off they are. If they like the security, or they like the work, or they like the co-workers, that’s fine, and I even understand that. But if financial security is a priority for them, they really ought to make it a priority and find a newer job, instead of griping. ---
**Author:** ![Unintentionally\_Blank](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/unintentionally_blank/32/5418_2.png) [@Unintentionally\_Blank](https://boards.straightdope.com/u/Unintentionally_Blank)\ **Post date:** [August 28, 2011, 4:34pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/78 "2011-08-28T16:34:44Z")
Hey, I’m not disagreeing with you. I’m coming to grips with the thought that my career may have peaked. I’m at the optimum age with years and experience to potentially do some really cool things, OR, I can take the ‘slow and steady wins the race’ track, where I’m guaranteed some kind of retirement income, but I’m as high as I can get in the state system with my career. But that ‘sure thing’ is just a Congressional Bill away from being not quite such a good deal. I’ve also poked around and found that, while there are some amazing jobs out there in theory, all the ones I’m actually finding kinda suck as bad as mine does, in one way or another. About the only real take-away I have at the moment is: My paycheck is assured, and I have time to spend with the family to make up for the crap that goes on during the work day. ---
**Author:** ![Dangerosa](https://avatars.discourse-cdn.com/v4/letter/d/22d042/32.png) [@Dangerosa](https://boards.straightdope.com/u/Dangerosa)\ **Post date:** [August 28, 2011, 11:20pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/79 "2011-08-28T23:20:21Z")
> [@MandaJo](#): > > The advice is to have 3-6 (or 6-12) months _living expenses_ in savings. If you are a dedicated saver, this can be really different from having 3-6 months salary. In fact, I found the easiest way by far to reach this point was to reduce my living expenses dramatically. This helped twice: one, the magic number got much smaller, and two, I was saving much more towards it each month! And that rule of thumb is really far too simplistic. If your job situation is uncertain, you have a single income, have a family, have a lot of obligations (car loan, mortgage) it would be difficult for you to find another job, then you should have a lot set aside. If you have two incomes, both in stable fields, that might have large severance checks associated with a layoff, and you are pretty employable, don’t have kids and your obligations are small (you might spend a lot, but you could quickly cut the dinners out and shopping) - you probably don’t need three months set aside. ---
**Author:** ![Dangerosa](https://avatars.discourse-cdn.com/v4/letter/d/22d042/32.png) [@Dangerosa](https://boards.straightdope.com/u/Dangerosa)\ **Post date:** [August 29, 2011, 2:28pm UTC](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181/80 "2011-08-29T14:28:35Z")
> [@rachelellogram](#): > > I avoid advertising and make twice minimum wage in my area (which has a higher COL than average, and a correspondingly higher minimum wage). > > A living _family_ wage in the 40s and 50s was a man bringing in enough to support the entire family. Yes it was more than minimum, but it supported way more people. Back then minimum wage would be enough for a single person to live on with roommates. These days, it barely covers gas to and from work. I grew up in the 1970s and lived with my grandparents for a bit. They were still living a very 1940s lifestyle - and had both been children of the depression. My grandfather was a machinist. There was no airconditioning. No TV. At any given time the only lights that were on were being used for work or reading. In the winter, it was 60 degrees in their house and you wore sweaters. They had meat twice a week and then stretched the leftovers out. My grandmother baked bread three times a week which was the staple of their diet. They’d lived with her parents for the first more than ten years of their marriage (my mother was twelve when they moved out) and had a 50% downpayment on their home. My grandmother managed a huge garden and canned the proceeds. She also went out to berry farms and apple farms and canned her own preserves. My grandmother’s closet was sparse. She had two dresses for Sundays - one dark enough for a funeral, one appropriate for a wedding. And half a dozen housedresses. There was one car, that spent most of its time in the garage - my grandfather took the bus to work, my grandmother walked everywhere she needed to get to. It was a different time. If we were to roll back and live like that - no cable or internet, public transportation for most of our needs, the majority of food on our tables coming from raw materials like flour - and much of it out of our own gardens - wearing a house dress that would last a decade (and which you sewed yourself) - we probably could raise a family on one income, too. [Previous page](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181.md?page=3) [Next page](https://boards.straightdope.com/t/can-you-pay-for-a-1000-emergency-expense-without-borrowing/594181.md?page=5)