I don't think you need as much of a buffer if you are able and willing to do odd jobs. Many people get in trouble because they hold out for the next job, which in this economic environment may no longer be there. However, if you are willing to work on your own until the next job opportunity, it is possible to get by with modest investment income.
My fallbacks are computer repair and networking, working for temp agencies, and I have even worked in factories. My willingness to go out and get work rather than a job makes it less frightening to survive until the next job offer. Fortunately, I grew up working on farms. Hard work does not frighten me. So, I'm willing to do things that many workers would refuse to do, such as work hard.
Like you, I am quite a ways from being able to use Hive rewards as income. My stock and crypto holdings are also not sufficient to generate the needed income to pay all my expenses. However, they are enough to boost my current income, which helps boost my savings rate.
My strategy has been shifting from paying down debt to building up my savings. I'll be paying slightly more than the minimum payments and spending from debit instead of credit. I know it sounds bad; but, if the economy turns for the worse and I lose my job, I'm defaulting on debts and keeping my cash. I'll have to suffer the impact to my credit for those 7 years, which isn't too long considering I may live another 40 years. Hopefully, things won't go that far and I am able to hustle enough side work to avoid defaulting.
At some point, there has to be a crossover point where your investment income is higher than your minimum payments. That is my goal. I won't get there being timid in my investments. Rather than aggressively paying down debt, I'm building up income. Hopefully this works out well enough that when I reach retirement it won't be with a drop in income.
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In Finland, it is common for people not to work below their education - and everyone is educated. This works in my favor ;)
I am answering line by line - see above :D but yeah, it is becoming a rare skill, - willingness to work hard at anything.
I wish more people saw it this way - A saving stream, rather than an income stream.
I think many are taking this tact - even if they don't have the cash. Live now - default later. I think it is better to have the cash plan than just the "live now" approach.
25 years til retirement for me thereabouts - fingers crossed, nose to the grindstone.
25 years sounds like a great deal of time until you realize that the last 25 went by so quickly. I'm feeling some urgency to my savings as I am between 11 and 20 years to retirement, depending on how well I am able to save. The closer that date comes, the smaller the margin of error.
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I completely agree. I feel like 25 years is just around the corner and it worries me that I am so unprepared.
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