Comments on: Preparing For A Layoff http://frugaldad.com/2009/02/07/preparing-for-a-layoff/ Tips for living frugal while still having a life Sat, 20 Mar 2010 20:06:24 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: JoeD http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17868 JoeD Wed, 11 Feb 2009 17:46:50 +0000 http://frugaldad.com/?p=1581#comment-17868 I think it is best not to get too caught up on following Dave Ramsey or guys like John Cummuta exactly, but taking as much of their advice as possible and fitting it to your situation as best as you can. I think the main thing with Dave and the $1000 EF is that most people don't really save money for the "what ifs" that will happen, such as car repairs, furnace repairs, roof repairs, etc. If you don't have any money saved then you may be tempted to just put it on the CCard. If you have a stable job then after you have a little bit of a cushion they advocate to pay off as much consumer debt as possible. And for lining Dave's pockets, I think his books are all $20 or less on ebay. I got one for $7 including shipping. If he has a good product that helps people who cares if he makes alot of money doing that. He has helped thousands of people get out of debt and take control of their finances. It is mostly commone sense, but how many people do you know that follow it or do it on their own? Very, very few. I think the average American has $400 total or less in savings or something like that. I think it is best not to get too caught up on following Dave Ramsey or guys like John Cummuta exactly, but taking as much of their advice as possible and fitting it to your situation as best as you can.

I think the main thing with Dave and the $1000 EF is that most people don’t really save money for the “what ifs” that will happen, such as car repairs, furnace repairs, roof repairs, etc. If you don’t have any money saved then you may be tempted to just put it on the CCard. If you have a stable job then after you have a little bit of a cushion they advocate to pay off as much consumer debt as possible.

And for lining Dave’s pockets, I think his books are all $20 or less on ebay. I got one for $7 including shipping. If he has a good product that helps people who cares if he makes alot of money doing that. He has helped thousands of people get out of debt and take control of their finances. It is mostly commone sense, but how many people do you know that follow it or do it on their own? Very, very few. I think the average American has $400 total or less in savings or something like that.

]]> By: Diane http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17822 Diane Wed, 11 Feb 2009 04:49:27 +0000 http://frugaldad.com/?p=1581#comment-17822 Sheri - I'd consider splitting the refund - using part to pay down debt (maybe $1500) and adding the other $1K to your emergency fund. It's not strictly 'by the books' Dave Ramsey, and you could just put it all on the debt if you're okay with the $2K emergency fund, especially since the debt is at a higher interest rate. Personally, I like having a bit larger emergency fund. If you do save part of the refund I would put any spare money coming in on the debt to continue paying it down. Use the extra income from your raise for the debt payments. Sheri -

I’d consider splitting the refund – using part to pay down debt (maybe $1500) and adding the other $1K to your emergency fund.

It’s not strictly ‘by the books’ Dave Ramsey, and you could just put it all on the debt if you’re okay with the $2K emergency fund, especially since the debt is at a higher interest rate.

Personally, I like having a bit larger emergency fund. If you do save part of the refund I would put any spare money coming in on the debt to continue paying it down. Use the extra income from your raise for the debt payments.

]]> By: matts girlfriend http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17816 matts girlfriend Wed, 11 Feb 2009 03:05:54 +0000 http://frugaldad.com/?p=1581#comment-17816 Sheri- If it were me I would live exactly as you are now and sock the bonus and the raise into the debt like you never even got it. If you are comfortable with the $2,000 in cushion/ef then use the refund check also to throw on the debt. If you are thinking you might have a major car repair or furnace to repair then maybe split the refund and put half of it on debt and half on the emergency fund-that would give you a $3500 emergency fund and have you down to at least 2k in debt. I think you have to modify your emergency fund to fit "your life". I want mine higher because my job is not stable right now and my car has 100k miles on it.....so I have to be ready to replace a motor or transmission at any given time. If you are feeling pretty safe use your refund & kill off debt. Just my thoughts :) Sheri-
If it were me I would live exactly as you are now and sock the bonus and the raise into the debt like you never even got it. If you are comfortable with the $2,000 in cushion/ef then use the refund check also to throw on the debt. If you are thinking you might have a major car repair or furnace to repair then maybe split the refund and put half of it on debt and half on the emergency fund-that would give you a $3500 emergency fund and have you down to at least 2k in debt. I think you have to modify your emergency fund to fit “your life”. I want mine higher because my job is not stable right now and my car has 100k miles on it…..so I have to be ready to replace a motor or transmission at any given time. If you are feeling pretty safe use your refund & kill off debt. Just my thoughts :)

]]> By: Sheri http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17806 Sheri Wed, 11 Feb 2009 01:15:02 +0000 http://frugaldad.com/?p=1581#comment-17806 Um, I meant to ask specifically about an upcoming $2500 refund check, as in, should I pay down debt or save it, given my circumstances as described above. Thanks in advance. PS. I do realize it's a big refund, but this was mainly because of points paid for a refi. Um, I meant to ask specifically about an upcoming $2500 refund check, as in, should I pay down debt or save it, given my circumstances as described above. Thanks in advance.
PS. I do realize it’s a big refund, but this was mainly because of points paid for a refi.

]]> By: Sheri http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17798 Sheri Tue, 10 Feb 2009 22:48:42 +0000 http://frugaldad.com/?p=1581#comment-17798 Lots of great advice on here, but I was wondering what you all would do if your job is secure--no layoffs, just received a raise and bonus--and you have some debt (6K) but not a huge cash cushion ($2000). The finance charge on the debt is 13.99@, but the cash gets less than 3% right now. I looked at Dave Ramsey's advice, but I wasn't sure about the 1K EF. His followers--hmm, sorta sounds familiar--and he make it sound as if 1K is really all you need til you pay off your evil debts, but now I'm wondering. Lots of great advice on here, but I was wondering what you all would do if your job is secure–no layoffs, just received a raise and bonus–and you have some debt (6K) but not a huge cash cushion ($2000). The finance charge on the debt is 13.99@, but the cash gets less than 3% right now. I looked at Dave Ramsey’s advice, but I wasn’t sure about the 1K EF. His followers–hmm, sorta sounds familiar–and he make it sound as if 1K is really all you need til you pay off your evil debts, but now I’m wondering.

]]> By: Eric http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17785 Eric Tue, 10 Feb 2009 17:26:09 +0000 http://frugaldad.com/?p=1581#comment-17785 I say save up cash. Cash is king and yes, you may have more monthly obligations with debt payment if you are laid off, but you have cash in the bank. If your efund runs out, you'll could be withdrawing money from CCs at an interest rate of 28% or more. I say save up cash. Cash is king and yes, you may have more monthly obligations with debt payment if you are laid off, but you have cash in the bank. If your efund runs out, you’ll could be withdrawing money from CCs at an interest rate of 28% or more.

]]> By: Aggie http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17778 Aggie Tue, 10 Feb 2009 13:52:09 +0000 http://frugaldad.com/?p=1581#comment-17778 Personally, I would either pay off the debt, or make sure I have enough to make proper payments. This recession might last four or five years... but your credit history lasts 7. If you are late on one payment, it will show for 7 years. Think about the long term. Think about your credit report. Aggie Personally, I would either pay off the debt, or make sure I have enough to make proper payments.

This recession might last four or five years… but your credit history lasts 7. If you are late on one payment, it will show for 7 years.

Think about the long term. Think about your credit report.

Aggie

]]> By: Diane http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17735 Diane Mon, 09 Feb 2009 23:54:52 +0000 http://frugaldad.com/?p=1581#comment-17735 Matt's Girlfriend- Sounds like you have your head on straight and have a good grip on your financial situation... you just needed to confirm the right thing to do. Good luck with your job situation. Hopefully your job will work out, and you can use the savings later to pay down your debt, which is not excessive. I do think the extra savings will make you feel more secure in uncertain times! Matt’s Girlfriend-

Sounds like you have your head on straight and have a good grip on your financial situation… you just needed to confirm the right thing to do.

Good luck with your job situation. Hopefully your job will work out, and you can use the savings later to pay down your debt, which is not excessive.

I do think the extra savings will make you feel more secure in uncertain times!

]]> By: Matts girlfriend http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17706 Matts girlfriend Mon, 09 Feb 2009 18:26:14 +0000 http://frugaldad.com/?p=1581#comment-17706 OK- I am Matt's girlfriend and let me just clarify.....I have far more then 1,000 in an emergency fund, take that times about 6! So I am not foolish and I have very little debt other then my home! As a matter of fact my total debt is not much over 3 grand and that includes a dentist bill I got slapped with and new windows I put in my house to save some really high energy cost. (The windows were so old they still had the weights in the wall) My car is 10 plus years old and paid off and will be driven till it cost me too much money to keep or the wheels fall off. I also work 3 jobs plus go to college. The advise is greatly appreciated and I agree that most of this stuff is common sense. Unfortunately we live in a world where financial common sense is about as common as a dinosaur so many people do need this in black and white. I have decided after reading many of these comments that I will stop paying more then the minimum on my bills until I know I am once again secure, which includes saving my tax return. Thanks again Matts Girlfriend OK- I am Matt’s girlfriend and let me just clarify…..I have far more then 1,000 in an emergency fund, take that times about 6! So I am not foolish and I have very little debt other then my home! As a matter of fact my total debt is not much over 3 grand and that includes a dentist bill I got slapped with and new windows I put in my house to save some really high energy cost. (The windows were so old they still had the weights in the wall) My car is 10 plus years old and paid off and will be driven till it cost me too much money to keep or the wheels fall off. I also work 3 jobs plus go to college.
The advise is greatly appreciated and I agree that most of this stuff is common sense. Unfortunately we live in a world where financial common sense is about as common as a dinosaur so many people do need this in black and white.
I have decided after reading many of these comments that I will stop paying more then the minimum on my bills until I know I am once again secure, which includes saving my tax return.
Thanks again
Matts Girlfriend

]]> By: Diane http://frugaldad.com/2009/02/07/preparing-for-a-layoff/comment-page-1/#comment-17693 Diane Mon, 09 Feb 2009 16:48:02 +0000 http://frugaldad.com/?p=1581#comment-17693 Jenna, I've never spent a cent to line Dave Ramsey's pockets - his books are readily available at the public library, and I've only read The Total Money Makeover. You're right, much of his stuff is common sense. By the time I found his book I'd already done almost everything in it on my own. But it took me a good while to figure it out. Some people need extra direction and I think he can help them get on the right track. You are correct, we should all be cutting spending and saving as much as possible, however its done! Jenna,

I’ve never spent a cent to line Dave Ramsey’s pockets – his books are readily available at the public library, and I’ve only read The Total Money Makeover.

You’re right, much of his stuff is common sense. By the time I found his book I’d already done almost everything in it on my own. But it took me a good while to figure it out.

Some people need extra direction and I think he can help them get on the right track.

You are correct, we should all be cutting spending and saving as much as possible, however its done!

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