If you missed Suze Orman on Oprah...
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If you missed Suze Orman on Oprah...
| Fri, 04-03-2009 - 6:29pm |
Here's a link to her comments and revised perspective.
| Fri, 04-03-2009 - 6:29pm |
Here's a link to her comments and revised perspective.
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Ugh....8 MONTHS of living expenses saved ?? I mean, seriously! I don't have anywhere near that and I thought we were doing well with having 5 times the amount of the BEF....
I don't want to try to save up 8 months worth before getting out of debt. What do you all think about this? And will you be following Suze's advice?
Ok, seriously 8 months of expenses.
I definitely see her point. DH gt laid off twice in 13 months. The first time he was unemployed for 5 months and the second time he was unemployed for about 4 months, I think. Both times we had some notice so we could start to horde our cash. Both times we were lucky that he got severance pay and he got paid for all of his unused vacation time. That was a huge help. When we combined that with the little savings we had and Unemployment we did OK. We wouldn't have lasted much longer, though. As it is now, we have almost no available credit. If DH lost his job we'd be in big trouble pretty quickly. He would probably get paid for his unused vacation, but I asked him and he doesn't know if his current company has any kind of a standard severance package. Luckily, at least for right now his job is fairly secure. After going through two layoffs, I realize that there's no true job security, so of course, I'm nervous.
At this point we're not going to change anything, but I do recognize that the $1,000 emergency fund we have won't get us very far in the event of a layoff.
I tend to agree with ihsdebt.
Sorry Carolyn, this time I must disagree with you (and that never happens).
Kellie, I completely agree with you.
Personally, I have never cared for ANY of the "financial gurus."
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I don't know, I think it makes sense to tell people to switch from paying down debt to saving. Yes, it does mean people will pay more interest in the long run. But this recession is getting deeper and deeper and people are staying unemployed longer and longer. It just makes sense to squirrel away cash before paying down debt when you don't know if your job is going to be there tomorrow, and if that's the case, how long it will take you to find a new job.
In
Here's my two cents worth.
Norma
"Patience is the best remedy for every trouble"- Plautus
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