Panicked? Stressed to the max? Would you cry? Would you be able to pay all your bills? Maybe you’d feel excited at the prospect of free time, or secure and confident because you’ve planned ahead.
I know in my current financial situation, I’d feel panicked and stressed if I lost my full time job suddenly and without warning. I’d be worried about how to pay my bills, and which bills to make a priority, because I know I couldn’t afford to pay them all every month, not even just the minimums.
Maybe if you don’t have much debt or you have a large emergency fund in place you are not bothered by the thought of a job loss. Perhaps you’d be excited at the thought of having more “free time” on your hands.
Emergency funds are important.
I bring up this job loss scenario to bring to your attention how important it is to have an emergency fund in place, especially if you’re single.
Because you’re single, if you lose your main source of income, you don’t have a spouse’s salary to fall back on and if you don’t have an adequate EF in place, you could be in big trouble.
How am I doing with my emergency fund?
Currently, I am working to build up my EF while I pay off debt. But until my debts are gone, I don’t plan to save aggressively or to a large amount, so it’s also important that I have multiple streams of income coming in each month.
While I’d be stressed if I lost my FT job suddenly, I know I could quickly find another full-time job because I could rely on the great relationship with my boss at my part-time job. Granted, working full-time at my current PT job wouldn’t pay enough to entirely make up for my current FT job, but it could at least make a dent in helping me earn the required income I need each month to pay my bills.
I am diversified.
In addition to my current FT job and PT job, I also do some online freelancing and I know I could work diligently to bring in more online freelance jobs if I lost my FT job. I also have a direct-selling business that I could spend more time working on to help increase my income.
Even with all these efforts and multiple income streams, it would be difficult for me to replace my FT job’s income and be able to make all my monthly minimum payments. Not to mention replacing my FT job’s excellent benefits, including matching retirement contributions and a generous amount of sick leave and vacation time.
Thinking about “what if’s” can be scary and some may think it’s useless, but asking “what if” can be a valuable question if it brings to your attention the fact that you need to plan ahead. It’s important to have a healthy-sized EF in place, and multiple streams of income, especially if you’re a single person.
What would you do if you lost your job?
Image via Flickr by TaxCredits.net