What's on my mind lately? The economy. Rather, the recession. Each day the news gets worse--today, it was from Microsoft, and they're planning their first-ever layoff. The software industry might be more insulated than others but we're not completely protected. Companies everywhere are freezing budgets and salaries.
B and I are both still employed, which is more than one can say for 7.2% of the country. That number is probably higher now. The rate for our state is lower than the national rate but not significantly so--we're all in this one together.
B and I are as prepared as we thought was reasonable. Our financial planner recommended building an emergency fund that covers 6 months of expenses. Until last September, it felt a little wasteful to have that capital sitting in a bank account earning a piddly 2.5%. Now I'd gladly take a 2.5% return on my 401k. I'd settle for breaking even...
We have an emergency fund in case we both lose our jobs, but we're protected as long as one of us is employed. Before we bought our condo, we planned our expenses carefully. We could have extended ourselves by buying more, bigger, better--a house, maybe, or a condo that is a little closer to our jobs. Instead, we found a mortgage that, when combined with all of our other expenses, we can manage with one of our salaries.
I hope you're prepared for this storm and whatever it brings. If you don't have an emergency fund, it's never too late to start one, and even small contributions make you feel prepared. Meet with a financial planner, even if you think there isn't any flexibility in your budget. If you want a local recommendation, let me know.
I can also say from experience that paying the correct amount in taxes is also key to maintaining a balanced budget. I feel a Robert Burns moment coming over me...let's hope that the rest of the best laid schemes of this mouse don't go agley.
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