How would you handle a job loss?

[kork13]

So you would live the same? And if you were out of work for 6-12 months? I know you are 30s kork so no changes?

Very few changes, likely yes. Our household runs on ~$5k/mo, less than half of our income. If I lost my job tomorrow & had no income except DW's minor military disability pension (~$1650/mo), we could live with zero changes for about 7 months just out of our EF. We could likely go another 3-4 months on other cash on hand, and 10 months off of taxable investments. I have no reason to believe that I would ever be unemployed for months or years in end -- I'd start delivering pizza before I tolerate zero income for that long. And even if somehow I was unemployed for 18+ months, as soon as we're have an income coming in again, we'd focus on building everything back up & get back to our current position likely within a couple years. Zero concerns from me.

I see smart personal/family finance as a means of providing financial security & stability to our family. We have that security, and I'm very grateful for that fact.

[corn18]

Would you travel? Or are you there since you are so close to FIRE? What would you have done if it had been 5 years ago Corn you found us but before you were FIRE?

Depends. If I weren't ready to FIRE, I would cut everything until I figured out where we sat. No vacations.

[~bs]

The $65k/year annualized unemployment benefits would mean that I'm still ok. My normal spending level is half that, without even trying to be frugal. That's not even taking into consideration the EF, which is doubling as cash available for business investment/ real estate purchases. My last vacation was november, the one before that was probably over a year before. I really could use an extended break, especially if I'm getting paid $65k/year for it.

[cypher1]

I didn't know what FIRE is, but wondered if it meant "F*** it, retire early".

I think I'm gonna start using that new meaning.

[LivingAlmostLarge]

The $65k/year annualized unemployment benefits would mean that I'm still ok. My normal spending level is half that, without even trying to be frugal. That's not even taking into consideration the EF, which is doubling as cash available for business investment/ real estate purchases. My last vacation was november, the one before that was probably over a year before. I really could use an extended break, especially if I'm getting paid $65k/year for it.

but it's not $65k for a year. It expires July31. It expires after 16 weeks or four months. Right now it's not looking like the federal government is extending it. It also doesn't look RIGHT NOW that it's going past 39 weeks of state unemployment. So you won't be making $65k/year.

And what about health insurance? Do you qualify for medicaid or not with so much unemployment? Unemployment is usually taxable. So You may not as a single person qualify for obamacare subsidies. And if you are furloughed then you don't necessarily qualify for unemployment. My coworker who was furloughed from his regular job March 15-may 1st said he applied and was on hold to get unemployment until they decided if he was or was not going back to work. He did not qualify.

[~bs]

but it's not $65k for a year. It expires July31. It expires after 16 weeks or four months. Right now it's not looking like the federal government is extending it. It also doesn't look RIGHT NOW that it's going past 39 weeks of state unemployment. So you won't be making $65k/year.

And what about health insurance? Do you qualify for medicaid or not with so much unemployment? Unemployment is usually taxable. So You may not as a single person qualify for obamacare subsidies. And if you are furloughed then you don't necessarily qualify for unemployment. My coworker who was furloughed from his regular job March 15-may 1st said he applied and was on hold to get unemployment until they decided if he was or was not going back to work. He did not qualify.

key word is annualized. I could also add that I doubt I'd have that much trouble finding a good replacement job, should that become necessary.

situation depends on state. furloughed employees count in mine. No waiting period. workers will get paid for back weeks missed. Many employers are continuing to cover medical, although all dont. The ones that don't offer cobra by law.

[LivingAlmostLarge]

True that it's annualized. I don't know if people will be able to find jobs so easily. But this is a weird "recession" we're in that's not officially a recession yet

[corn18]

Driving through our small town, there are help wanted signs up everywhere. My company is hiring like crazy. If you worked in travel or leisure, you might be stuck for a while. But look outside that and there are a lot of jobs.

[disneysteve]

Driving through our small town, there are help wanted signs up everywhere. My company is hiring like crazy. If you worked in travel or leisure, you might be stuck for a while. But look outside that and there are a lot of jobs.

There is always work to be had, though it isn't always a decent replacement for what you may have lost. Also, many times people are turned away for being "overqualified". I understand that companies don't want to hire and train someone who is going to jump ship as soon as something better comes along but it makes it tough for the person who is truly willing to do anything to keep money coming in.

[QuarterMillionMan]

During a pandemic I would not travel period. End of story. Regardless of having lost a job or maintaining my job. Or whether or not I have the funds. It is a moot point. Safer at home.

[disneysteve]

During a pandemic I would not travel period. End of story. Regardless of having lost a job or maintaining my job. Or whether or not I have the funds. It is a moot point. Safer at home.

The original question wasn't asking about during the pandemic. Obviously, right now, nobody is going anywhere. What would you do under normal circumstances when travel could be done freely?

[LivingAlmostLarge]

Or will people travel if their jobs are precarious?

[Anil Sharma]

I think it really depends on your personal situation.

If I were to lose my job I would cut out all wants until I found new employment.
But that's just me given where I am financially.

I definitely believe that its differs person to person... losing a job....
- Some might have reference for better opportunity of they have good network.
- Some might take a break after and find an opportunity side by side.
- Some might be financially strong so it won't bother them so much and would find the other job of their interest with he flow of the time as they like.
- Some would be in trauma if they do are finding it hard to find the new alternative soon and has no money for survival.
- Some might have savings in liquid form and can survive for a longer time until they have their next job.
- Some might depend on the parents.