It is a little late to be doing this.
I have pretty bare-bones expenses (Fine, my apartment is 40% of my income) but I would struggle to save 24-months of expenses any time soon.
Unless you are making like $250k and living on $50k, I would say it is a little late to be stocking up to survive a downturn. I could do it if given probably 5 years, but I couldn't pull that off in 1 year.
Yes, the sooner you make the changes, the better off you will be. Just like getting healthier.
A huge part of it is mindset. If you are striving to build 24 months of savings, you'll have to think about income and expenses and figure out which ones matter, which ones can go away, and how to improve them in general. There may not be a single silver bullet but there can be a lot of little things that will help in the long run.
OK, now take that 30% and transfer it into a savings account before anything else. It doesn't exist. Your pay is what's left. Now budget expenses and life.
Start living when you have a little insurance. Even six months buys some peace of mind.
If you have a family you have to modify a little to ensure they can have a tolerable life meanwhile, and a little time out etc. but you get the idea.
If you keep this idea going even in good times you'll be buying rental properties with it eventually.
I have done it before and I know I can do it, but I don't see the point in inflicting abject poverty on myself just so I am vaguely protected.
I understand what you are coming from, but really isn't for me. (Maybe when my income grows / I don't live in NYC...)
Every generation seems to have a big economic shock it has to weather through (or two or three). I think living on a percentage of your income with 6-12 months' salary in the bank is the only smart thing to do when you're able to do it.
If you're in the tech industry you can afford to save 30%+ of your income. We have a it a lot better than other sectors and make good money.
Take a small pay cut now for a large payout in the future. Don't sacrifice your future for a little fun now.
Sometimes while you are doing this you will die.
I had two really good friends who died in their early 30's, both would have made great family men, both saved carefully, got an education at great personal cost, one served in the military, both were austere and diligent in their lives. Their parents did not seem consoled by the large cash sums that they received from these men's estates.
I think that both of them would have been well served to have lived a little more before their time was up. What's the value of amazing maths skills and financial security when you are dead?
In our industry you can save enough money through your 20's and 30's to retire in your 40's. It makes far more sense to do that then to plan on dying in your 30's.
They meant that you should have been doing that for years