(Closed) Spinoff: Emergency Fund/Financial Plan

posted 7 years ago in Money
Post # 17
Member
956 posts
Busy bee
  • Wedding: January 2014

Our plan for loss of income would beto first reduce our spending by eliminating luxiries and couponing/budgeting/asking for help. Then, use our savings to pay for rent, groceries, gas and all other necessities.

By “asking for help” I don’t mean asking for money, but maybe asking someone who lives close by if we can carpool to work (to save on gas) and spreading the word that we need another job so people can point us to anything they hear about.

Post # 18
Member
2571 posts
Sugar bee
  • Wedding: November 2013

@AB Bride:  I have enough in savings to hold me over for about 3-4 months assuming that I don’t buy anything but the bare basics. DH has a ton of savings (six figures), but I feel bad touching that b/c HE worked hard for that money, but it’s good to know it’s there. However, my not wanting to touch that money keeps me motivated to save on my own.

Post # 19
Member
1667 posts
Bumble bee
  • Wedding: August 2014

We have an emergency fund, but if one of us lost our job, we would leave the city. This place will bleed you dry without income. We’d rent out our apartment (we own it) and go.

Hopefully it won’t come to that, as we are planning on leaving the city to start a family in around a year!

Post # 20
Member
509 posts
Busy bee
  • Wedding: October 2016

we have some savings, plus we live below our means, we dont what most people will spend a month, related were we live. Right now my dh is not working, he is sick, doctor said he should apply for social security(disable). I was lay-off in my morning job, but still have a part time job, i get partial unemployment, money is tight, but we’re ok, havent used our savings yet.

Post # 21
Member
627 posts
Busy bee

We have an emergency fund. We have actually had to use it before, so I think it’s important to maintain. I’d be worried without a “just in case” cushion. 

Post # 22
Member
4027 posts
Honey bee

Currently, we have about 10 months of expenses in savings. However, we are going to be purchase a home in July/August and will use a large portion of it for our downpayment. 

Our plan is to rebuild it and get it back up to at least 3 months savings. We have retirment accounts, but don’t plan on tapping those unless absolutely necessary.

Post # 23
Member
6112 posts
Bee Keeper
  • Wedding: August 2012

@AB Bride:  Good subject!  I have thought about this alot and I have spreadsheets. LOL

Scenario 1: I lose my job.

Plan would be to lower or stop retirement contributions.  H makes enough that we would be just fine without my salary (it’s mostly for saving anyway).  Curb extraneous spending just in case.

 

 Scenario 2: H loses his job.

Different story as he makes 2x as much as me!  We could live on my salary and what is in our checking for 10 months.  We’d have to stop retirement contributions though and cut out luxuries.  We also have the option to pay the regular mortgage rate. Right now we’re paying extra on it.

 

Scenario 3: We both lost our jobs.

We would cut down to the basics for starters.  We could live on what is in the checking for 4-5 months.  Then if we’re still unemployed, we could take unemployment.  As a backup, we could pull our Roth contributions which are tax/penalty free.  That would get us buy for a whole year.  But if we got unemployment we probably don’t have to do that.  Credit cards could be an option.

Other spare income options would be to rent the basement out.  It’s 3 bedrooms, 1 bath, large living area, private entrance.  Just doesn’t have a kitchen right now but that would be not too hard with the gas and water lines there.  Or do Air BnB and rent out the rooms for income.  Sell come outdoor gear.  Flip hamburgers.  Plasma.

 

 

 

 

Post # 24
Member
1798 posts
Buzzing bee

Step 1 of my plan would be to panic and cry a lot. Honestly, I don’t suspect that we would ever lose my income just due to the nature of my work (knock on wood). If I were to lose my current position I would just have to go out and find a new one, or I could do some side jobs to make up for what I lost. If SO lost his position we would be in a tighter spot since he is the one with a full time job. In the event that he lost his job I would probably end up just picking up more side jobs as well. We definitely don’t have anywhere near 6 months in savings, but we are working on it. 

Post # 25
Member
6112 posts
Bee Keeper
  • Wedding: August 2012

*a lot.  Too late to edit!

Post # 26
Member
418 posts
Helper bee
  • Wedding: August 2013

We have an emergency fund in savings. It wouldn’t be a big deal if we lost my income because mine pretty much goes into savings anyway, but we would really start to panic if we lost DH’s income. He has two part-time jobs, but one of them often gives him 40+ hours per week. I could always supplement us with little side jobs.

Post # 27
Member
1646 posts
Bumble bee
  • Wedding: August 2013

We have a 6-month emergency cash stash and have more in stocks if we need it. We also learned to live off of one income even though we earn 2, so we’re already very used to cutting back. I also have a side business that I can always ramp up if we lost a job and I get offers to freelance all the time.

Post # 28
Member
327 posts
Helper bee
  • Wedding: June 2014 - Excalibur

We live almost all on my income anyway. Though Fiance has no savings. I have a significant amount of money in bonds and in my money market. I would be set for quite a while.

The topic ‘Spinoff: Emergency Fund/Financial Plan’ is closed to new replies.

Find Amazing Vendors