I knew this going into the industry and planned accordingly (I’m also pretty risk averse so that had something to do with wanting to have a plan). I usually have a three to six-month stash of cash in case any unexpected expenses come up including a lay off. I could live as I do now (AKA living large) for six months – eight if I live less large :). After that time elapsed I could then dip into my investments and live for many years if necessary. Everyone that enters the ad world knows of its reputation and the realities of how agencies are literally tied to the budgets of their clients – yet my opinion and requirements of having months of savings always at my disposal is somehow unique. The same people that have tears in their eyes when they’re called into the boss’s office dropped $100 at a bar the night before. I know because I was there – and I spent $20. It’s not a lack of money, but somehow an unwillingness to think ahead and plan for unfortunate events. Personally living that way would stress me out, but my peers and friends tell me they don’t feel that way. They say they would feel deprived having two beers out instead of four cocktails. We see things differently.
Looking back before I understood investing, even having a small emergency fund saved me a lot of strife and helped me navigate life: I quit my first job when I literally couldn’t take it anymore with $5,000 in my bank account. That $5,000 could have allowed me to keep my standard of living for a little over 3 months. I had 3 months to find a new job. Instead of life following that timeline, at 9am the following Monday I received a call: a job offer from a huge ad agency – actually, the one Mad Men was based on. It all worked out and I was confident in my decision to leave my first company because of the small emergency fund I had saved and the skills and reputation I had earned. Even after one job I knew I was competent enough to find another– I had great recommendations, knew how to network (that’s how I found my internship and job in the first place) and had an impressive roster of clients and agencies I’d worked with. That knowledge paired with my emergency fund allowed me to say “forget this” and leave a toxic environment.
On the flip side, I’ve been laid off several times as have my peers. Every time it happens to me I seem to freak HR out because I come in smiling and courteous – thinking about the vacation I’m about to have. Apparently, they’re more used to tears than smiles. Saving money has not only decreased the stress in my life, but also brought an insane amount of freedom and joy. If an unforeseen expense comes up I pay it, if I get laid off I enjoy my funemployment and start traveling. Since I started understanding what my money could do for me it seems like my possibilities are endless.