Comments on: Always Be Prepared: 5 Tips for Unexpected Job Loss http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 13 Feb 2012 01:22:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Greg Miliates http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-265415 Greg Miliates Fri, 19 Aug 2011 17:32:19 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-265415 While these are all great suggestions, there's a gaping hole in the overall approach, since it assumes you need a job at all. I used to have a day job, and after the company was acquired, management changed, etc., people started getting worried about losing their jobs--especially people like me who had been with the company for several years and who were in the upper tier, salary-wise. I eventually started my own business (that was 4 years ago), and have quadrupled my former salary. As a business owner, I'm actually MUCH more economically secure than I ever was as an employee. As an employee, I was completely dependent on the paycheck from my employer, and if they decided to lay me off, I'd be in dire straits. But as a business owner, I have dozens of clients, and if any one client doesn't need my services, other clients do (not to mention that I can get additional clients), and my income--while somewhat variable--is much more secure. Even if I lost half my clients, I'd still be OK. So, while starting a business on the side involves work, I truly believe that it's not only a great "insurance" policy in case you lose your job, but it's completely changed my worldview to the point where I doubt I'll ever need a "real" job. While these are all great suggestions, there’s a gaping hole in the overall approach, since it assumes you need a job at all. I used to have a day job, and after the company was acquired, management changed, etc., people started getting worried about losing their jobs–especially people like me who had been with the company for several years and who were in the upper tier, salary-wise.

I eventually started my own business (that was 4 years ago), and have quadrupled my former salary.

As a business owner, I’m actually MUCH more economically secure than I ever was as an employee. As an employee, I was completely dependent on the paycheck from my employer, and if they decided to lay me off, I’d be in dire straits. But as a business owner, I have dozens of clients, and if any one client doesn’t need my services, other clients do (not to mention that I can get additional clients), and my income–while somewhat variable–is much more secure. Even if I lost half my clients, I’d still be OK.

So, while starting a business on the side involves work, I truly believe that it’s not only a great “insurance” policy in case you lose your job, but it’s completely changed my worldview to the point where I doubt I’ll ever need a “real” job.

]]> By: AndyS http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-155873 AndyS Tue, 10 Jun 2008 20:55:57 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-155873 Great post and one to bookmark for future reference. I have put down a list of things I think one should do to prepare for a lay off at : http://www.savingtoinvest.com/2008/03/tips-on-preparing-for-potential-job.html A number of the points are similar to yours with some tangents. Thanks, Andy. Great post and one to bookmark for future reference. I have put down a list of things I think one should do to prepare for a lay off at : http://www.savingtoinvest.com/2008/03/tips-on-preparing-for-potential-job.html

A number of the points are similar to yours with some tangents.

Thanks, Andy.

]]> By: NZbird http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-137834 NZbird Sun, 24 Feb 2008 19:46:57 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-137834 Keep your food pantry WELL STOCKED. I mean food is an essential right. And if you have kids you don't want them stressing out because the basics like food aren't there. So stock up your pantry real good with all the ingredients for meals. I try to keep around 6 months supply on hand. My husband use to laugh at me when I started doing it, but you know it introduced a discipline into our grocery shopping that wasn't there before. Over time we actually saved heaps of money which was quite a shock. That was because we were buying to a list to top up supplies and nothing else. It created quite a bit of security too. The kids always knew the ingredients were in the cupboard for lunches, breakfast, and any snacks they wanted to make. I believe it's that feeling of security and hope for the future that must be maintained for the sake of the children in times of job loss. Keep your food pantry WELL STOCKED. I mean food is an essential right. And if you have kids you don’t want them stressing out because the basics like food aren’t there. So stock up your pantry real good with all the ingredients for meals. I try to keep around 6 months supply on hand. My husband use to laugh at me when I started doing it, but you know it introduced a discipline into our grocery shopping that wasn’t there before. Over time we actually saved heaps of money which was quite a shock. That was because we were buying to a list to top up supplies and nothing else. It created quite a bit of security too. The kids always knew the ingredients were in the cupboard for lunches, breakfast, and any snacks they wanted to make. I believe it’s that feeling of security and hope for the future that must be maintained for the sake of the children in times of job loss.

]]> By: Greg http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-128921 Greg Thu, 20 Dec 2007 04:12:46 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-128921 Saving is important, but so is not spending yourself into a hole when unexpected bills appear on your doorstep. One of the cardinal mistakes people make, especially younger savers, is to presume that credit cards or other short-term money sources are a good "life preserver" should health problems or, say, an auto accident impose sudden expenses. Saving is important, but so is not spending yourself into a hole when unexpected bills appear on your doorstep. One of the cardinal mistakes people make, especially younger savers, is to presume that credit cards or other short-term money sources are a good “life preserver” should health problems or, say, an auto accident impose sudden expenses.

]]> By: pam munro http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-122055 pam munro Sun, 04 Nov 2007 21:24:48 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-122055 As an actress/artiste who is ALWAYS looking for work - I also recommend: #1 Trying to live below your means as much as possible. #2 Try pennypinching and other ingeneous methods to get what you want at less than retail. #3 Be aware of useful class markers but avoid conspicuous consumption. ($800 handbags, really...)#4 Recognize that the pace of social change around us is accelerating. Protect yourself by not getting into a rut of the old ways of doing and thinking. Keep on the qui vive with your eyes and ears out for signs of shifts which may affect you and your family. As an actress/artiste who is ALWAYS looking for work – I also recommend:
#1 Trying to live below your means as much as possible. #2 Try pennypinching and other ingeneous methods to get what you want at less than retail. #3 Be aware of useful class markers but avoid conspicuous consumption. ($800 handbags, really…)#4 Recognize that the pace of social change around us is accelerating. Protect yourself by not getting into a rut of the old ways of doing and thinking. Keep on the qui vive with your eyes and ears out for signs of shifts which may affect you and your family.

]]> By: Flexo http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-121824 Flexo Wed, 31 Oct 2007 18:12:26 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-121824 Frank: You are correct -- I've adjusted the wording above. Thanks! Frank: You are correct — I’ve adjusted the wording above. Thanks!

]]> By: Frank http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-121771 Frank Wed, 31 Oct 2007 00:13:53 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-121771 "You can liquidate and withdraw any amount you’ve invested in your Roth IRA for the current tax year without any taxes or penalties" I have read many many times that ALL contributions - not just current year - can be withdrawn at any time - just never the earnings. You may wish to check this for the sake of your readers http://www.irs.gov/publications/p590/ch02.html -Frank “You can liquidate and withdraw any amount you’ve invested in your Roth IRA for the current tax year without any taxes or penalties”

I have read many many times that ALL contributions – not just current year – can be withdrawn at any time – just never the earnings.

You may wish to check this for the sake of your readers
http://www.irs.gov/publications/p590/ch02.html

-Frank

]]> By: Calvin Trager http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-121736 Calvin Trager Tue, 30 Oct 2007 14:48:35 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-121736 One more tip, be mentally prepared. I've found that repeating to myself that "Change Is Good" gives me peace of mind no matter what. "Change" helps you learn and grow. "Change" makes you look at everything differently. "Change" presents new and different opportunities. "Change" will help you findout where you REALLY belong. I could go on and on. AND DON'T TOUCH THAT 401K!!! One more tip, be mentally prepared. I’ve found that repeating to myself that “Change Is Good” gives me peace of mind no matter what.

“Change” helps you learn and grow.
“Change” makes you look at everything differently.
“Change” presents new and different opportunities.
“Change” will help you findout where you REALLY belong.

I could go on and on.

AND DON’T TOUCH THAT 401K!!!

]]> By: Flexo http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-121697 Flexo Mon, 29 Oct 2007 23:17:57 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-121697 Raz: You can verify it in a number of places. Your own brokerage/Roth IRA custodian would be the first stop, but here's a link. Towards the bottom of the page: <blockquote><strong>What if I Need Access to My Money Now?</strong> A helpful feature of the Roth IRA is that, for non-qualified distributions, original contribution amounts are returned first. Contributions (as opposed to earnings) are not subject to taxation or the 10 percent IRS premature-distribution penalty when distributed. In other words, <strong>you can always get back your principal tax free and IRS penalty free for any reason. </strong></blockquote> Raz: You can verify it in a number of places. Your own brokerage/Roth IRA custodian would be the first stop, but here’s a link. Towards the bottom of the page:

What if I Need Access to My Money Now?
A helpful feature of the Roth IRA is that, for non-qualified distributions, original contribution amounts are returned first. Contributions (as opposed to earnings) are not subject to taxation or the 10 percent IRS premature-distribution penalty when distributed. In other words, you can always get back your principal tax free and IRS penalty free for any reason.

]]> By: razmaspaz http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-121691 razmaspaz Mon, 29 Oct 2007 21:04:30 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-121691 "You can liquidate and withdraw any amount you’ve invested in your Roth IRA for the current tax year without any taxes or penalties." I wasn't aware of that. That's really great to know. I don't contribute to my IRA at the beginning of the year because I'm still trying to build my emergency fund. This may change that. Where can I verify this information? “You can liquidate and withdraw any amount you’ve invested in your Roth IRA for the current tax year without any taxes or penalties.”

I wasn’t aware of that. That’s really great to know. I don’t contribute to my IRA at the beginning of the year because I’m still trying to build my emergency fund. This may change that. Where can I verify this information?

]]> By: Brian http://www.consumerismcommentary.com/always-be-prepared-the-unexpected-job-loss/comment-page-1/#comment-121679 Brian Mon, 29 Oct 2007 17:32:03 +0000 http://www.consumerismcommentary.com/2007/10/29/always-be-prepared-the-unexpected-job-loss/#comment-121679 Great list! I think that even though job loss can frequently be unexpected, "unexpected" shouldn't necessarily mean "unprepared". I would also add that you should sign up for unemployment immediately. While the check probably won't be anywhere close to what your salary was, that extra money will definitely be appreciated. (Also, since your employer foots part of the unemployment bill, you can get some emotional satisfaction as well ;-) Great list! I think that even though job loss can frequently be unexpected, “unexpected” shouldn’t necessarily mean “unprepared”.
I would also add that you should sign up for unemployment immediately. While the check probably won’t be anywhere close to what your salary was, that extra money will definitely be appreciated. (Also, since your employer foots part of the unemployment bill, you can get some emotional satisfaction as well ;-)

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