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I've got my 3 months' saved away, a couple hundred thousand in my 401k and more than $40K left from my refi that I'm slowly using to remodel my house and property as I build up the savings account. That said, 3 months is probably enough for me given that I have enough ties in my industry to have a freelance career rolling within a month, even in a recession. I've also got a 800+ credit rating and about $50K in available credit that I'm not using (Yes I know that could dry up in the current situation, but let's just say even if that happens I could charge 3 months' expenses if I had to *shudder*). By the end of the year, I should have a year's worth of expenses saved up. I'm not about to martyr myself just to make sure my family is comfortable. This has been very thought out. I can afford to distribute a few hundred bucks a month to my relatives who need it or charities that I support and still meet all my financial goals.
And please, let's stop with "They need to struggle" or "they should have planned better" BS. These are intelligent and hardworking people. This is an unprecedented situation. We live in a society that does not support its population well at all. Health insurance is a disaster, and minimum wage is a joke. Sometimes people just don't make enough. When you read historical records of the Great Depression in the 1930s, do you think "Well they should have planned better"? I doubt it very much.
The rule of thumb was always 6 months of expenses. I always thought that was kind of low.
Six months of living expenses is recommended under normal circumstances.
These are not normal circumstances.
I wonder how many people had 6-12 months of savings during the 2008-2009 Recession and were still wiped out and the economy was still functioning to an extent.
I've got my 3 months' saved away, a couple hundred thousand in my 401k and more than $40K left from my refi that I'm slowly using to remodel my house and property as I build up the savings account. That said, 3 months is probably enough for me given that I have enough ties in my industry to have a freelance career rolling within a month, even in a recession. I've also got a 800+ credit rating and about $50K in available credit that I'm not using (Yes I know that could dry up in the current situation, but let's just say even if that happens I could charge 3 months' expenses if I had to *shudder*). By the end of the year, I should have a year's worth of expenses saved up. I'm not about to martyr myself just to make sure my family is comfortable. This has been very thought out. I can afford to distribute a few hundred bucks a month to my relatives who need it or charities that I support and still meet all my financial goals.
I'm still not clear why or where you heard that having 3 months of savings is enough? And, do you think the pandemic will be over and everybody and everything will all be back to normal... in 3 months??? Sorry to break the news to you, but it could be years before the economy is back to what it was.
And what if something happens to you and you can't work? Are you going to turn to these same cousins and ask for the money back, ask them to help YOU out, now?
Look, do what you want, we are only trying to get you to see that I hope you have someone to turn to for money... when you are going to need some.
Again, as I said in my earlier post, the two cousins will be getting $1200 each ($2400 total), supposedly those direct deposits are going out in 10 days. Then, if one or both has filed for unemployment, in my state that is $4200 more money PER MONTH, each month, until the end of July. Let's say one of your cousins could file for unemployment, and the two of them will receive the stimulus money, that is a total of $6,600 they will be receiving over the next month. It seems to me they won't be needing a $200 grocery card from you. You need to look out for yourself, too, which it does not seem to me that you are realistically thinking about.
Does no one here have an adult sibling who has consistently gotten into scrapes only to be bailed out promptly by the parents? Does anyone really think that was a good idea?
Feeling that they need to "experience the struggle" is not being punitive or judgmental. It is giving them an opportunity to grow and build resourcefulness.
Obviously if someone is in dire need of food because they're about to starve, you step in. That's a no-brainer. But there are resources that don't involve depending on relatives.
My siblings are all self reliant so I can't speak personally but I know what you are talking about. What I am saying is this is a once in a lifetime event that no one saw coming. There is no way to prepare for something like this. Do you have a crystal ball or something???
OP, have you considered sending a gift card anonymously with a nice note?
In the 2008 recession, I had a good friend who lost her job. She was living off one packet of ramen a day and refused any help. I went to the store and bought her a basket of groceries, packed it up, and left it on her porch. To this day she has no idea it was me.
It might be more difficult given the distance but I'm sure you can figure something out if you really want to. Maybe you can have something delivered to them.
Are you certain that your cousin would welcome the financial help? To some, it might feel intrusive and possibly embarrassing. Once money is given in this way, it can change the dynamics of a relationship. I don't like the idea of giving a gift card anonymously because it might drive the recipient crazy trying to figure out who sent it and it could also make them wonder how many people know of their financial hardship.
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