What if You Couldn't Work?

posted 3 years ago in Money
Post # 2
Member
8418 posts
Bumble Beekeeper
  • Wedding: April 2013

HuysuzAyi33:  I actually don’t work, so if I had an accident or something, my house would just be really dirty lol.  My husband and I do have about 8 months of emergency savings put away (separate from our investment, regular savings, retirement, etc), but we don’t live in a very expensive area.  I’ve always been taught to have at least 6 months of emergency savings, but I’m sure everyone’s financial situation is different.

Post # 4
Member
4483 posts
Honey bee
  • Wedding: April 2015

I would collect disability if I qualified. Afterall, t’s intended for people who can’t work due to injury, illness, etc. I would prefer not to take assistance if possible, but I’m not sure FI’s currently earnings could cover both of us. I have some savings, but if I were out of work for an extended period the money obviously would only last so long.

Post # 5
Member
2871 posts
Sugar bee
  • Wedding: October 2012

HuysuzAyi33:  DH and I both work but we choose to live mostly off one salary. So if one of us lost a job, we’d be just fine. 

Post # 6
Member
4483 posts
Honey bee
  • Wedding: April 2015

HuysuzAyi33:  I suck at money too. I have student loans to pay off but I don’t want to live dreading any slight unplanned expense, so I keep a 1k cushion in savings. Yes, it could be used for loans, but if my car needs work, or I get sick, or a million other things happen, I would rather have that protection.

ETA: I’m also going to school, saving for a home and wedding, and leaving a job to complete an intenship for credit towards my degree, so I have a lot on my plate. Thankfully my bills are pretty low right now.

Post # 7
Member
7281 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

We keep a minimum of 6 months worth of regular expenses in the bank at all times for emergencies. Life happens, and we want to be prepared for it. We put off getting engaged and buying our house until we had cash in the bank to pay for everything with a 6 month cusion left over.  We also live below our means. We made sure that our mortgage payment + all of the other essential bills could be covered on the lesser of our 2 incomes. So if one of us loses our income, the other will still be able to afford the bills. That was hard because we live in a HCOL area, and houses in our desired area generally sell for about $650k. It took us 18 months and 2 failed contracts before we finally got a house we loved (even though it is a fixer) at a price we could afford to support on a single income if necessary. We could have afforded to spend more money, found a house sooner, and not have needed to do so much work to it, but we chose a lower mortgage payment obligation instead of a speedy buying process and higher-end finishes.

Mr. LK and I both lived check to check at one point in our lives (hello, early 20s stupidity!), with thousands in cc debt to pay off. Living through that significantly shaped the way we view money. We know what it’s like to live on that edge, and neither of us ever want to do it again. We’re both 34 and are trying hard to impart money wisdom to our teenager. We want to help him save himself from the money mistakes we made in our youth.

Post # 8
Member
3280 posts
Sugar bee
  • Wedding: June 2014

Well we have disability insurance so we’d use that. Then we always keep a 10K cushion in checking, plus our savings, investments, etc. I’ll be a grad student next month so my income really is miniscule anyways so we’d be fine if it were just me. 

Post # 10
Member
4483 posts
Honey bee
  • Wedding: April 2015

For us, FI is both the earner and the saver, so him not being able to work would be a much bigger deal. I make a limited amount and owe in loans, but “we” have savings together.

Post # 12
Member
4483 posts
Honey bee
  • Wedding: April 2015

HuysuzAyi33:  This will sound crazy, but I’ve started Christmas shopping. I wanted to send my parents to a small event that only offers 100 tickets, so I bought early. I actually prefer to space it out. FI and I agree we’re doing bigger gifts for the parents and scaling back everything else, each other included. I most likely will wait quite a while for any more shopping, but my parents’ gift was easily half my holiday spending budget, so a big chunk is taken care of.

Post # 14
Member
8418 posts
Bumble Beekeeper
  • Wedding: April 2013

HuysuzAyi33:  Well I’m 34 and my husband is 39, so we’re a little bit older and have had more time to save.  I think another big factor for us is our minimal amount of debt (no student loans, car payments, etc).  However, I have friends that make twice as much as we do, but are unable to save due to being in high cost of living areas.  I think that as long as you’re moving in the right direction, it’s only a matter of time before you reach your goal.

Post # 15
Member
4483 posts
Honey bee
  • Wedding: April 2015

HuysuzAyi33:  some people will want specific things in my family too, so I’ll save them for last. My parents appreciate anything, pretty much, so they’re easy. Too easy, in fact. Last year I kept seeing something they’d love and wanting to buy it even though I was done. This year though, with the house and the wedding and going back to school, I’ll have to just be done with this one big gift.

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