"You're not in a terrible position, with one small caveat: You should have something of an emergency fund, or you may end up dependent on others if something unexpected happens. This doesn't have to be anything extraordinary. Most Americans would have trouble covering a surprise $1,000 expense if they had to, and it sounds like you're not in that boat. A month's worth of expenses would be a minimum, and three months' would be ideal."
"That said, you seem to be asking whether it's OK that you spend your money how you do. If it's not, your columnist is in trouble, too. I've never had much of an inclination to accumulate things, so I don't dream of second and third homes or nice cars or yachts or whatever it is we're culturally told we should build wealth in order to acquire. I'm the only New Yorker I know whose eyes glaze over when people talk about real estate."
The individual spends on travel, experiences, meals, gifts, and donations while carrying current credit card debt and having no savings. The individual is over 40, childfree, and reports being happy despite the lack of savings. A basic emergency fund is advised to avoid becoming dependent on others after unexpected expenses. A minimum of one month's expenses is recommended, with three months ideal. Most Americans would struggle with a surprise $1,000 expense, illustrating common financial vulnerability. Prioritizing experiences and generosity is presented as a legitimate personal preference alongside the practical need for a safety buffer.
Read at Slate Magazine
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