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|Wed, 02-13-2013 - 11:36am|
Well we have not had one of these in awhile...thinking of you Lil!(I think that is who used to give them??!)
The purpose of a fire drill it to just see where you are at financially and how you would handle a life changing event were it to happen.
So this is your drill story:
You have lost your job and it will take 3-6 months to find another one. How will this affect your day to day, long term finances and how would you handle this situation. Give us a 3 and 6 month answer.
Well for me since I own my own business and have been not working due to having a baby since June we are living on one income. I suppose we always have or we wouldn't have been able to pay off the amount of debt we have so far. I do not receive unemployment benefits. We worked it out and paid off so many things that we were able to do this. However, if my husband lost his job we would probably be ok for 3 months. Not as to say we would be in great shape but we would survive without credit.
Now 6 months is a different story. I could go back to work early though. That job is sort of waiting for me. My staff is doing this as a favor to me working more so I could go back with no problem. My salary is the lesser of the two though so it wouldn't meet all out needs. But hopefully I would go back sooner than the 6 months and we could limp along. Plus I suppose we could stop all retirement contributions for this period to add to the cashflow before using credit. Towards the end though you never know. This is one of the reasons it is important to have cash and sinking funds to fall back on. The efund would not quite cut it here, especially not for that long. Oh and we have the option of skipping a mortgage payment once a year if need be so if we were getting down there that is an option.
I'm not big on asking for help from family...I'd like to think we could do this one our own but I would ask if I was really desperate.
I can't wait until we pay off our truck to have that payment gone. Oh and having my store on better footing wouldn't suck either! Oh in time it will all come together. I would hate to have to use retirement savings in this situation but I would if I couldn't feed my family.
This would not be a good situation. I think we would be ok but it wouldn't be easy and very stressful.
Tell your story if you want to!