Given the latest layoffs and the constant threat of more cuts, I’ve been thinking a lot about how much cash I have available and how many months of unemployment it would carry me through. I didn't like the number at all. Three months tops. I’m curious where other people stand when it comes to fully liquid savings, not stocks, retirement accounts, mutual funds, or anything you’d have to sell or wait on. Just money you could access immediately if things went sideways. Am I the only one who's utterly unprepared in all of this mess?
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I'm holding 20 months of net pay as cash, probably works out to about 2 years of current expenses, maybe a little less. Don't like the vibe of the current market and have some expenses coming up that would cut into that so trying to build it up more.
I've been living tech bo-m and bust cycles for 30 years. Two rules - 1) always have a year's salary in liquid funds (preferably your pre-tax salary, you can live on that for 3 years), 2) Keep your nut (minimum expenses before food) less than unemployment payout. Yeah, Rule #2 is getting harder and harder to follow, but just beware of every dollar of monthly expenses, keep it as low as you can. Do NOT carry unnecessary debt. Good luck out there!
Three months of severance for 18 years of service is pathetic, especially to be let go without even getting a reason. Definitely will be cutting back expenses where possible.
Best to have to have around 100k in personal checking just in case. Your stocks or 401k shouldn’t be touched until you deplete that. If you don’t have enough money to get by before you find another job, selling stocks is still a low priority though may be required. If you’re lifestyle is/was paycheck to paycheck, you probably were living beyond your means and need to downsize.
Stocks are pretty liquid if it's not in your retirement accounts. Just needs a 1 day turn around. I'm not sure why you'd need so much money instantly but if so just use a credit card and pay it off once your stocks settle.
OP proving once again that the US is a 3rd world country disquised as a first world country. One of the worst labor laws, social security and healthcare policies in the world.
Honestly feel sorry for you US based people. I can imagine the stress for these constant layoffs if you can lose your house and whatnot if you get fired from your job without being able to do anything about it.
I like to save for a year. In this economy you should save money for situations like this. There’s nothing else you can really do besides try to find a job