How long could you manage if you were fired tomorrow?

Davewils

This is something I didn't really think about before this year. I have no savings, a sizeable amount of debt however, and lots of direct debits to pay each month. But I had more money coming in that was going out, so the debts were slowly being paid off, and life was comfortable.

Then at the end of last year some things changed at work and by February I was decidedly not happy. This was also being reflected in the quality of my work and for the first time i felt like a race had started; what would occur first, would I be 'let-go' with 1 month's pay, or would I find another job and be able to give 1 month's notice.

It was at this point that I asked myself "If I was let go tomorrow, how long could I manage before I was in serious trouble financially?".

The answer, in my case, was that i'd have to find a new job within 1 month. I was living month to month, no savings.

Now, it's June and I start a new job in a couple of weeks (I found a job, probably only weeks before I feel i would have been let go!)

However it quickly dawned on me that even now, my situation was even more precarious. For the next 3 months, my new employer only needs to give me 1 weeks pay to get rid of me.

Needless to say, since February i've been working hard to build up a buffer but with my new notice period, i'd still need to find a job within a month before i'd be out of any savings.

So i was just wondering.... How long could you manage if you were fired tomorrow?

chella

I would last one month. Food stock would last a lot longer, but money for bills and essentials-one month. This thread has given me something to think about in regards to spending/saving. Thanks OP.

Ballard

This is something that I've investigated myself and I reckon that I could last a couple of years before my savings were exhausted. I am being made redundant in September and will effectively be paid until May 2016 so my two years will start from then.

ChopperST

After finding this site many years ago I got our finances in order. We have 12 months living expenses saved now. Granted all is not in liquid assets but we have a reasonable cash reserve if we needed to liquidate S&S etc.

SalarySlave

I though about this about years ago. Like you I was living month to month. No debt but didn't save anything just spent it all. I have always had a job and a desire to work and genuinely believed if you want to work you will find work. Two years My OH was made redundant and she went 6 months without a job, both of us were shocked at how hard it was to get a job.

I then started saving aggressively to the point were it was affecting my quality of life, I became obsessed with it. I now have about 8 months worth of normal living expenses put aside.

I still save but I have eased up and I am enjoying life much more.

Most people say 6 months of essentials in cash then start investing your money. OH has her own savings

Ballard

This is something that I've investigated myself and I reckon that I could last a couple of years before my savings were exhausted. I am being made redundant in September and will effectively be paid until May 2016 so my two years will start from then.

ViktorOnopko

Good question! I think between 3-5 months if I just paid bills, ate low budget and didn't do much else at all (i.e. was desperate).

JohnRo

difficult to say but currently somewhere close to 40 years at current investment income and capital gain levels, given current expenditure and lifestyle. Working on increasing that substantially and adjusting my lifestyle accordingly but I fear the dye is probably cast, I'm very much a live within means type and don't crave extravagance.

gadgetmind

We have a three year buffer held as cash and NS&I linkers, which is intended to be used as a "buffer" in retirement to avoid drawing down on pensions and ISAs when the markets are having a wobble.

Dunno if I'd look for a job given the stage of life I'm at but have a number of hobbies that could all easily earn a decent income.

atush

A couple of years, after that we might have to start drawing Oh's pension.

Could be longer, but I have law school to pay for next year for son 3 and we really should replace our cars. Been dragging my heels on this one lol. Also had cash set aside to redo the house, before a possible sale a few years down the road.

puk999

I think around 6 months. Looking to strengthen that. Partner is a full time teacher so that should provide some resilience was I to be made redundant during an economic crash.