Monday, March 16, 2009

So, the rest of the layoffs at MS are still looming over everyone's head. It's unfortunate that the company is looking at layoffs just to apease investors, when we have 40billion+ in the bank and the stock price is already down 50% from 12 months ago. Ugh.

So kind of as an excercise, I wrote out what a quick plan would be if I got laid off (not that it's likely, but in the unlikely case).

Of course it requires a ton of sacrifice to get the monthly bills down as much as possible. Gotta get rid of erroneous things like netflix, data plans on the cell phone, raise insurance deductibles, sell the car to get rid of the car payment (Thankfully we've got a good 9k or so in equity there) and sell off anything around the house we can. Probably my paintball gear, RC gear, bass, unfortunately, and so on. With all of this, if I was on unemployment, I'd still be around a thousand a month short on basic needs, such as house payment, homeowners dues, insurance, food, and whatnot. Our savings would cover us for a few months, but after that... we'd haveto start getting into debt to sustain us, which is a very dangerous prospect. I'm pretty sure either Rosemary or I could get any kind of job within a few months, so we'd probably be okay, as long as that job makes more than 1300 a month, until unemployment runs out, then we'd both need to be working again. But even then, our earning power adds up pretty well. She's worth a good 2k a month(more, actually), and I'm worth a substantial IT job, if we can find the right jobs.

This downturn is something funny. A few relatives and friends have lost their jobs. Houses are dirt cheap, and so are my house values. It leaves me in an uneasy place financially, where we are living off of one income right now, and don't have a ton of ability to save massive amounts of cash at a time like we have in the past. Our savings is okay, probably better than most, but one big event is all it would take to wipe that out. Say, broken transmission, or something like that. I can tell you though, if we weather the downturn well, have our savings intact, then we will come out on the other side very, very good. Good position to buy a new house, my 401k will rebound over time, no debt, etc, means we could be very agile with the resources we do have.

I guess I'm just kind of rambling about the general unease and strange situation that is the 08/09 recession. One of the things Rosie and I are turning a keen eye to lately is preparedness. It's no secret that the government is trying to repair bad spending habbits with more spending, and that the United States is slowly slipping in the eyes of the world, and sound economists. It's funny, that it's hard to prepare when you need to prepare, but easy of course when times are easy. It can be costly to prepare, between buying foods and water storage, heating units, investing in some precious metals, and so on, especially when you don't have a ton of extra. We'll just do the best we can, try to strike a balance between prepared and broke, and trust that God has got our backs. :)

It's just such a strange world. I mean, I guess I've only been living on my own for what, 3 years now, but I've gotten into the groove of getting used to providing for my family, budgeting out needs and wants, and finding a real good comfort zone. I can adapt just fine, but it sure makes me uneasy.

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