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So we just got word that our entire team is being laid off, because there's going to be a merger and the other company thinks they have enough people with our skill sets. This came as a shock as the merger was supposed to include our team as well. Everyone in the office is in panic mode. You can see that they're scared to their deaths. They're talking about how they're not able to afford their mortgages, car payments, other loans, student loan debts, etc...

We live in a small town and this means a lot of people with my skills will be on the market which makes it difficult to find a job that pays as much as the current job. I'm 32, married with two kids and someone like me should be scared to death right now. Indeed I would have been had it not been for this sub and other people who helped me realize that financing a lifestyle I can't really afford is like living in a house of cards, it's always ready to collapse with the slightest of winds.

Starting 6 years ago my wife and I decided that we're going to aggressively clear all debts . That included student loans, car loans, our mortgage and some personal loans from family and friends. It took a lot of hard work but just 3 months ago we paid off our house.

I have an emergency fund for 6 months of expenses. In fact we funded this before we went to pay off the mortgage, so it actually includes 6 months of paying mortgage as well which we no longer need to pay. In reality it's closer to 9 months of expenses.

So I'm going to be unemployed very soon, but I'm not scared. I would have been scared to death if I had a ton of payments to make with no or a small emergency fund. Now, it's just a matter of searching for a new job. I can spend time aggressively chasing down opportunities because I can afford the time to do so! I don't need to work a temporary job just to keep up with the payments.

Whenever I find a new job, the first thing we'll do is to refund the emergency fund to its full level.

So yeah guys, work on your emergency fund. Sure you'll lose money on it because it's in a bank account with low interest rates (compared to investments), but it's your insurance. It's there to support you when your income can't, you're supposed to lose money on insurance. You do it so that if you get into a situation like mine, you don't lose your shit. You can be calm, keep the lights on and keep supporting your family while you're focusing on your future options.



Submitted July 23, 2018 at 01:31PM by asf123gfq2 https://ift.tt/2uKnLlY

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