Comments on: Here’s your ace in the hole for weathering this long recession http://www.mightybargainhunter.com/2009/09/04/heres-your-ace-in-the-hole-for-weathering-this-long-recession/ Helping readers to use bargains wisely since 2005 Sun, 12 Feb 2012 16:24:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Financialbondage.org http://www.mightybargainhunter.com/2009/09/04/heres-your-ace-in-the-hole-for-weathering-this-long-recession/comment-page-1/#comment-238318 Financialbondage.org Wed, 23 Jun 2010 00:36:03 +0000 http://www.mightybargainhunter.com/?p=1794#comment-238318 Today, there is no such thing as job security. Today, there is no such thing as job security.

]]> By: Jen http://www.mightybargainhunter.com/2009/09/04/heres-your-ace-in-the-hole-for-weathering-this-long-recession/comment-page-1/#comment-193914 Jen Sun, 25 Oct 2009 14:02:14 +0000 http://www.mightybargainhunter.com/?p=1794#comment-193914 Having an "ace in the whole" implies you've preplanned for the situation. You've either saved up a substantial emergency fund, you keep your credit cards pay off, etc. The key to surviving any sudden change in finances due to job loss, illness etc is in the preparations and planning you did long before the situation arose. A good offense is much better than needing a defence under an emergency situation. As a normal way of living we live on about 50% of our net pay. The other 50% goes to saving/investing/travel, all of which can be temporarily stopped at any time should the need arise. If one of us loses our job we are already covering our basic living expenses on a single income. Until the second income is replaced, we simply stop saving/investing/travelling. I know I'll be laid off in the next 2-3 months - my company is in bankruptcy protection and selling off all the profitable business units before shutting the doors. At some point the remaining skeleton of the company will fold. I'm looking for another job and hopefully I'll find what I want before I'm laid off and there will be no gap between jobs. But if there is a gap, it won't cause us any difficulty. Living waaaaaay below our means allows me to look for a new job I want, and not be forced to take the first thing I find out of desperation. Having an “ace in the whole” implies you’ve preplanned for the situation. You’ve either saved up a substantial emergency fund, you keep your credit cards pay off, etc. The key to surviving any sudden change in finances due to job loss, illness etc is in the preparations and planning you did long before the situation arose. A good offense is much better than needing a defence under an emergency situation.

As a normal way of living we live on about 50% of our net pay. The other 50% goes to saving/investing/travel, all of which can be temporarily stopped at any time should the need arise. If one of us loses our job we are already covering our basic living expenses on a single income. Until the second income is replaced, we simply stop saving/investing/travelling. I know I’ll be laid off in the next 2-3 months – my company is in bankruptcy protection and selling off all the profitable business units before shutting the doors. At some point the remaining skeleton of the company will fold. I’m looking for another job and hopefully I’ll find what I want before I’m laid off and there will be no gap between jobs. But if there is a gap, it won’t cause us any difficulty. Living waaaaaay below our means allows me to look for a new job I want, and not be forced to take the first thing I find out of desperation.

]]>