{"id":77929,"date":"2020-01-18T12:19:20","date_gmt":"2020-01-18T10:19:20","guid":{"rendered":"http:\/\/moneyminority.com\/emergency-fund-because-capitalism-doesnt-give-a-fuck-about-you-dear\/"},"modified":"2020-03-26T17:22:11","modified_gmt":"2020-03-26T15:22:11","slug":"emergency-fund","status":"publish","type":"post","link":"https:\/\/moneyminority.com\/en\/emergency-fund\/","title":{"rendered":"Emergency Fund, Because Capitalism Doesn\u2019t Give a Fuck About You Dear"},"content":{"rendered":"\n
\n\n\n\n

We live in the time of capitalism, no one can deny that! <\/p>\n\n\n\n

No one can ignore that capitalism is a topic that tends to polarise people, and it tends to polarise them in extremes. <\/p>\n\n\n\n

You’ll find fanatic supporters as well as fanatic enemies of capitalism.<\/p>\n\n\n\n

Yeah, but who’s right?\nBoth<\/strong>, but no one <\/strong>at the same time!<\/p>\n\n\n\n

As with all things in this pointless world, it’s neither white nor black, but mostly grey<\/strong>\u2014and this is what happens with truth.<\/p>\n\n\n\n

No, I don’t mean that the truth is grey, you smart-ass. What I mean is that it’s just somewhere in the middle. <\/p>\n\n\n\n

Capitalism has its positive and its negative characteristics. <\/p>\n\n\n\n

One thing is certain, though: <\/p>\n\n\n\n

\u2022 CAPITALISM DOESN’T GIVE A FLYING FUCK ABOUT YOU \u2022 <\/strong><\/p>\n\n\n\n

\"Capitalism<\/figure>\n\n\n\n

Wow there<\/em>\u2014you must be thinking<\/em>\u2014we have a capitalism hater over here!<\/em><\/p>\n\n\n\n

\u2014Au contraire!\u2014<\/em><\/p>\n\n\n\n

Anyway, now’s not the time to talk about myself. <\/p>\n\n\n\n

As you’ve (hopefully) understood by now, the purpose of a corporation is not to make you (as an employee) happy, nor to make you rich. <\/p>\n\n\n\n

The primary purpose of a corporation is to make its shareholders happy.<\/strong><\/p>\n\n\n\n

How does it achieve that?<\/p>\n\n\n\n

By having profit<\/strong>!<\/p>\n\n\n\n

Profit<\/strong> = <\/strong>Revenue<\/strong> \u2013 <\/strong>Expenses<\/strong><\/p>\n\n\n\n

Using my amazing mathematics skills, I can understand that profit can be achieved through two actions:<\/p>\n\n\n\n

Either by raising the revenue, <\/strong>or by lowering the expenses. <\/strong><\/p>\n\n\n\n

Let’s focus on the second for now\u2026 <\/p>\n\n\n\n

Small companies do that… Big companies do that…<\/p>\n\n\n\n

The larger ones actually use experienced outsourced consultants which carry out Cost Out Projects. <\/p>\n\n\n\n

*Cost Out Projects<\/strong>\u00a0= Projects that study what costs must a company minimise to lower its expenses. <\/em><\/p>\n\n\n\n

And one of the biggest costs of a business is\u2026 <\/p>\n\n\n\n

…wait for it… <\/p>\n\n\n\n

John, Bill, me, you, and so on. <\/strong><\/p>\n\n\n\n

Its human capital!<\/p>\n\n\n\n

(<\/em>Do<\/em> you<\/em> see<\/em> where<\/em> I<\/em> am<\/em> getting<\/em> at?<\/em>)<\/em><\/p>\n\n\n\n

So, if the numbers say you must be fired, then you’re getting fired! <\/p>\n\n\n\n

\n\n\n\n

Remember<\/strong><\/em>:<\/strong><\/em>\n<\/em>It<\/strong><\/em>‘<\/strong><\/em>s<\/strong><\/em> not<\/strong><\/em> personal<\/strong><\/em>, <\/strong><\/em>so you shouldn’t take it personally! <\/em>\n<\/em>As<\/em> we<\/em> said<\/em> before<\/em>, <\/em>the<\/em> objective<\/em> of<\/em> a<\/em> company<\/em> is to have profit. <\/em><\/p>\n\n\n\n

\n\n\n\n

What?! <\/p>\n\n\n\n

You believe it won’t happen to you? <\/p>\n\n\n\n

I’ll have you know that it can happen even to the best of the best\u2026<\/p>\n\n\n\n

The risk of losing your job is and will always be there. <\/p>\n\n\n\n

Just look around you\u2026 <\/p>\n\n\n\n

It’s tough, isn’t it? <\/p>\n\n\n\n

It sure is! <\/strong><\/p>\n\n\n\n

Maybe it’s unfair as well? <\/p>\n\n\n\n

Hmm\u2026 Maybe it is! <\/strong><\/p>\n\n\n\n

Does anyone care about the family that you need to support? <\/p>\n\n\n\n

(<\/em>Besides<\/em> you<\/em>, <\/em>of<\/em> course<\/em>)<\/em><\/p>\n\n\n\n

No one<\/strong>!<\/strong><\/p>\n\n\n\n

If it does happen, what will you do? <\/p>\n\n\n\n

Will you do the same thing that the majority does? <\/p>\n\n\n\n

You’ll get out and complain loudly that it was unfair and that you didn’t deserve it, and you’ll demand that someone else finds a solution to your problem? <\/p>\n\n\n\n

I’d like you to do something different<\/strong>:<\/p>\n\n\n\n

I’d like you to be already prepared!<\/strong><\/p>\n\n\n\n

How will you do that? <\/p>\n\n\n\n

By building an Emergency Fund! <\/strong><\/p>\n\n\n\n

That will be a helping hand in a tough moment, and on the same time, it’ll be your support, your safety net, and it will give you time to get over that tough moment! <\/p>\n\n\n\n

The only way to win at a game is to learn to use its rules to your advantage! <\/em><\/p>\n\n\n\n

\n\n\n\n

What did we learn from my rant just above, then? <\/p>\n\n\n\n

  • CAPITALISM DOESN’T<\/strong> CARE<\/strong> ABOUT<\/strong> YOU<\/strong><\/li>
  • You need an Emergency Fund<\/strong>!<\/li><\/ul>\n\n\n\n
    \n\n\n\n

    What is an <\/strong>emergency fund?<\/strong><\/h2>\n\n\n\n
    \"What
    Photo by Piotr Chrobot on Unsplash <\/figcaption><\/figure>\n\n\n\n

    An Emergency Fund is exactly what the name suggests, it’s a Fund <\/strong>for <\/strong>Emergencies!<\/strong><\/p>\n\n\n\n

    It’s capital that is kept in a different bank account <\/strong>which you’re allowed to use only in emergencies. <\/strong><\/p>\n\n\n\n

    Think of it like that little hammer that buses have so you can break the glass in case of an accident, so you can escape.<\/p>\n\n\n\n

    (<\/em>Yes<\/em>, <\/em>those<\/em> that<\/em> you<\/em> used<\/em> to<\/em> steal<\/em> when<\/em> you were younger\u2014I know you did! What<\/em> are<\/em> you<\/em> looking<\/em> at<\/em>?)<\/em><\/p>\n\n\n\n

    It’s always there, but you’ll use it only if you need to! <\/p>\n\n\n\n

    \n\n\n\n

    Why do you need an <\/strong>emergency fund?<\/strong><\/h2>\n\n\n\n
    \"Why
    Photo by Jason Barone on Unsplash <\/figcaption><\/figure>\n\n\n\n

    If you haven’t realized it yet, life is full of setbacks and problems. <\/p>\n\n\n\n

    As Murphy has said (and I’m almost sure it wasn’t Eddie): <\/p>\n\n\n\n

    “Whatever can go wrong, will go wrong<\/em><\/strong>!”<\/em><\/strong><\/p>\n\n\n\n

    You might lose your job\u2026\n*<\/em>See<\/em> above<\/em><\/p>\n\n\n\n

    You might get sick\u2026<\/p>\n\n\n\n

    Your car might break down and you might be left without a way to get to your job\u2026\n\n*<\/em>Maybe<\/em> you<\/em> should<\/em> have<\/em> taken<\/em> it<\/em> to<\/em> be<\/em> serviced<\/em> on<\/em> time<\/em><\/p>\n\n\n\n

    The emergency fund comes, just like that little hammer on the bus, to give you the solution for such emergencies. <\/p>\n\n\n\n

    It’s what will help you stand on your feet in a difficult moment and will give you the safety net and the support you will need to overcome it. <\/p>\n\n\n\n

    \n\n\n\n

    How<\/strong> big<\/strong> does<\/strong> my<\/strong> emergency fund need to be? <\/strong><\/h2>\n\n\n\n
    \"How
    Photo by Charles ?? on Unsplash <\/figcaption><\/figure>\n\n\n\n

    The amount of money in your emergency fund is only depended on your risk tolerance. <\/p>\n\n\n\n

    In general, a rule of thumb is to set aside<\/strong> money that can cover your monthly expenses for at least three months. <\/strong><\/p>\n\n\n\n

    For a logical amount of time during which you’ll probably find a new job or another source of income. <\/p>\n\n\n\n

    I personally follow the unofficial rule and keep a fund that can sustain me for 3 months, in a different bank account. <\/p>\n\n\n\n

    Don’t forget:<\/p>\n\n\n\n

    • You’re<\/strong> not<\/strong> allowed<\/strong> to<\/strong> touch<\/strong> this<\/strong> fund<\/strong>
      It’s the “sacred” security pillow for the tough times that are coming, keep it for them!<\/li>
    • You’re<\/strong> not<\/strong> allowed<\/strong> to<\/strong> invest<\/strong> this<\/strong> fund<\/strong>
      Investments contain risk, and in a coming crisis, they might be lost. So, think about the scenario of the coming crisis, you might have not invested the fund, or you might have invested the fund and lost it. Which would you prefer?<\/li><\/ul>\n\n\n\n
      \n\n\n\n
      \"Track<\/figure>\n\n\n\n

      Before I bid you goodbye, I have something for you! <\/p>\n\n\n\n

      Homework<\/strong>!<\/strong><\/p>\n\n\n\n

      I’d like you to do something you might not have done before. <\/p>\n\n\n\n

      (If you have already done it, then I’m proud of you!)<\/p>\n\n\n\n

      Open<\/strong> an<\/strong> Excel<\/strong> sheet<\/strong> and<\/strong> write<\/strong> down<\/strong> all<\/strong> your expenses for this month! <\/strong><\/p>\n\n\n\n

      First, it’s for your own good, and second, you’ll be surprised! <\/p>\n\n\n\n

      Finally, it’s an indicator of the emergency fund you will start getting together\u2026 starting tomorrow! <\/p>\n\n\n\n

      \n\n\n\n

      I’m waiting to read your comments! <\/p>\n\n\n\n

      Do you have an emergency fund?<\/p>\n\n\n\n

      If you don’t, do you think of getting started? <\/p>\n\n\n\n

      If yes, how many months’ worth of expenses do you plan to cover? <\/p>\n\n\n\n

      Has it saved you during a tough moment? <\/p>\n\n\n\n

      Go on, don’t be shy! <\/p>\n\n\n\n

      S.<\/p>\n\n\n\n

      \n\n\n\n

      *<\/em>Share this article with the people you love and with those you believe that will be helped by it\u2026 <\/em>\n\n(<\/em>or<\/em> just<\/em> to embarrass a friend of yours that stole the little hammers in the buses) <\/em><\/p>\n\n\n\n

      \n\n\n","protected":false},"excerpt":{"rendered":"

      We live in the time of capitalism, no one can deny that! No one can ignore that capitalism is a topic that tends to polarise people, and it tends to polarise them in extremes. You’ll find fanatic supporters as well as fanatic enemies of capitalism. Yeah, but who’s right? Both, but no one at the<\/p>\n","protected":false},"author":1,"featured_media":77952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":""},"categories":[347],"tags":[317,396,397,318,143,360],"table_tags":[],"class_list":{"0":"post-77929","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-money-management","8":"tag-capitalism","9":"tag-capitalism-en","10":"tag-emergency-fund-en","11":"tag-emergency-fund","12":"tag-slider","13":"tag-slider-en"},"uagb_featured_image_src":{"full":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",900,506,false],"thumbnail":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear-150x150.jpg",150,150,true],"medium":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear-300x169.jpg",300,169,true],"medium_large":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear-768x432.jpg",768,432,true],"large":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",770,433,false],"1536x1536":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",900,506,false],"2048x2048":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",900,506,false],"cheerup-small":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",175,98,false],"cheerup-medium":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",450,253,false],"cheerup-full":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",900,506,false],"cheerup-viewport":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",900,506,false],"cheerup-768":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear.jpg",768,432,false],"post-thumbnail":["https:\/\/moneyminority.com\/wp-content\/uploads\/2020\/01\/Emergency-Fund-Because-Capitalism-Doesn\u2019t-Give-a-Fuck-About-You-Dear-270x180.jpg",270,180,true]},"uagb_author_info":{"display_name":"Sterg","author_link":"https:\/\/moneyminority.com\/en\/author\/stergioskstergiou\/"},"uagb_comment_info":2,"uagb_excerpt":"We live in the time of capitalism, no one can deny that! No one can ignore that capitalism is a topic that tends to polarise people, and it tends to polarise them in extremes. You’ll find fanatic supporters as well as fanatic enemies of capitalism. Yeah, but who’s right? Both, but no one at the","_links":{"self":[{"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/posts\/77929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/comments?post=77929"}],"version-history":[{"count":0,"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/posts\/77929\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/media\/77952"}],"wp:attachment":[{"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/media?parent=77929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/categories?post=77929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/tags?post=77929"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/moneyminority.com\/en\/wp-json\/wp\/v2\/table_tags?post=77929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}