Wouldn’t you know it. I stick my neck out a bit and buy this second home. Further, I sink every nickel I’m making in to finishing the place. Then drama starts at work. I’ve been with my company for 6 years and was able to ride out post 9/11 while thousands and thousands of people got laid off. I’ve always been a high performer and shouldn’t have a thing to worry about as far as job security goes. There’s only one problem. I work in Information Technology (IT). I think all the leaders of major companies must sit around in exclusive cigar rooms and talk about the next place to focus their cost cutting efforts. It has certainly been sexy to shrink IT as much as possible over the last 4-5 years. Certainly I’m whining a bit here. I completely understand the need to continuously improve productivity and I know that it’s capitalism at it’s finest. While I understand it and even agree with it to some extent, I still don’t have to like it when the grim reaper starts walking down the hallway.
I don’t know if I’ll ever get laid off or when I might get laid off, but I know that I’m not feeling very secure about my job these days. It’s kind of sad when you are considered a top performer, get great pay raises each year and progress in responsibilities but you are also scared to death of losing your job.
All of this insecurity gives me a great opportunity to start playing with scenarios again. While we don’t have nearly the emergency fund that we have had in the past (due to the second home), I do have a few assets that would be quick to liquidate as well as a decent chunk of cash that’s fairly liquid. By my quick calculations, we could get by pretty well for upwards of a year, without feeling too much pain. If it got really ugly, we could sell the second home and take our profit. That would get us by for a couple years. There is no way I’d be out of work for a couple years. I would work my network of friends and past co-workers to find something long before that.
Anyway, nothing like a little job insecurity to get the blood pumping. I’m going to go have a drink.
Must be something in the recycled office air… I had the *exact* same thoughts yesterday.
It’s truly frightening when, by hard work and dedication, you reach the point where you’re likely to be a victim of your own salary.
Same here. I’ve gone to full time freelance consulting as a result of years of this type of job market.
I hear you — I’m impressed you feel like you can be comfortable for a year. I definitely need a bigger emergency fund — I am ill prepared should something happen.
We don’t have much liquid savings thanks to my DH. Most of it is invested. But I guess the difference is we’ve been through layoffs multiple times at our young ages, me and him, and we’ve learned a lot. One, you don’t need cash immediately often you have more than you expect in your checking just sitting there (our bad habit). Often we have 1-2 months mortgage payments about $5k just sitting, yes it could be earning money but no we’re not going to be moving it.
Two, what about severance? We’ve both had some generous severance packages and we only bought a house on 1 income. What are the chances of both of us being unemployed? So that allows for higher risk in investing our EF.
Also getting another job. What is the possibility of getting another job? If I had to I could get a job in month tops. DH might take longer but because he’s being picky, if he had to, with his new skill set (getting mba) we’re opening up new career options. So that works in our favor.
I guess our biggest asset no kids. We don’t have large bills from kids looming. That’s the nice part.
Livingalmostlarge,
Thanks for the comments. I do get roughly 6 weeks of severance if I get laid off this year, plus I would also get unemployment etc. It wouldn’t be too bad and I do think I’d be able to find another job. The thing that scares me the most is health care.
All that being said, I’m pursuing some other opportunities in a preemptive strike.