Mar
Lately, I’ve become a little paranoid about losing my job and possibly ending up without a way to pay my bills, buy groceries and take care of myself, so I’ve been stocking up on everything I have the ability to think I would need so I dont run out if I didnt have enough money to survive. A couple weeks ago, I bought 10 bottles of dish detergent and I always have a couple cases of laundry detergent next to the washer. I’ve been putting $700 a month in a savings account, and I’ve a few thousand dollars in i bonds. My home has $9500 equity loan on it. Other than that, its paid for. Is this idea crazy? Are you ready if you would be out of a job without money? I dont know how I would survive if I lost my job, so I’ve been working like a crazy woman to pay off all my credit card debt. Any suggestions or thoughts on this?
Answer:
The problem with detergent is that you can’t
eat it in an emergency. It would not be a bad
idea to be stocking up on nonperishable items
that you would want to have on hand if the
grocery stores were closed or shelves empty.
It could happen!
Water is another item, candles, matches,
water purification tablets.
As an aside, your money in bonds is being
wasted, in terms of purchasing power. The
purchasing power of $10,000, in 1997 dollars,
is worth about $3,000, today.
I would switch into buying pre-1964 silver coins,
and small gold coins, as well. These have a
proven history of retaining value, and can be
used as barter, in a pinch.
Better to be safe than sorry.
Answer:
The way you survive a job layoff, is to have an emergency fund, with 3 -6 month of living expenses in it. If you’re worried about a job layoff, pay off your home equity loan immediately (if you can).
I survived a 2 yr job layoff in 2003. I survived on my emergency fund and unemployment. Surviving a layoff isn’t all that difficult if you plan for it.