This came in my e-mail from the Dollar Stretcher, and I thought it would be a great topic here. I know many struggle with money, and others have it all together, so maybe those who have it all together can help those who don't! Take an honest look at your finances and ask yourself, How long could I make it if I lost my job??? Around here probably 6-8 months, maybe a year if we were SUPER thrifty. I could pay all th basic bills, and still eat and have a minimal amount of money for gasoline and small extras. The article follows. It is pretty interesting!!

The Question of the Day by Doris S. Dobkins

This week, I've received emails from several readers who have recently been laid off from their jobs. Some were surprised and some weren't.

This article revolves around a simple question, a question I've been asking myself every day for the past couple of weeks.

The question makes me think! The question gives me a better perspective for my frugality.

The question is, "What would life be like for you if you lost your job tomorrow?" If your paychecks would stop immediately, what would you do?

How long could you last on savings? Would you end up going into major debt?

If you are like most people with credit card debt, a car payment a mortgage, and living from paycheck to paycheck, you'd probably panic. If you had some money in savings, it could tie you over for a while but for how long?

I want you to think about this question for a while. If you have no debt, no car payment, no mortgage and no credit card balances, how much money would you need each month to live on? Now if you were to lose your job, how would you feel? You could probably get a minimum wage job anywhere and get by with no problem, right?

What is that worth to you? Is it worth getting out of debt for? Is it worth it for you to have financial freedom and peace of mind that a debt-free lifestyle can give? If so, establish a debt elimination plan for yourself, follow it and achieve success.

I know there are people who want to keep their mortgage and/or invest their extra payments for a higher return in the stock market. I know that many people are hanging on to their mortgage because they think it is their last tax deduction. But what about the peace of mind that comes from knowing that what's yours is yours and that you are debt free?

For me, that's the only way to be. I'm working on my plan, how about you? ________

Doris Dobkins is the Money Saving Expert Author of "Financial Freedom A-Z Home Study Course" and publisher of the free weekly ezine $mart Money New$.

-- Melissa (me@home.net), December 10, 2001

Answers

Hi, I've been lurking, here, mostly. We got lucky with a large lot of land which we kept part of and sold the rest to pay off the bills. Now we are saving any excess we have in a week to avoid ever having to use credit again. My mother always told me, make sure you have three months' expenses saved in your bank account in case something happens. I suppose it takes that long for the unemployment to kick in.

-- Dawn (olsoncln@ecenet.com), December 10, 2001.

Well, Melissa, actually I DID lose my job! Things have been a little tighter, but not bad. I was amazed by how much money I spent when I worked on things like gas, work clothes, lunches, quick food dinners, treats for the kids because I wasn't spending time with them, etc. I did buy- and completey paid off, a refrigerator, washer and dryer and a few house expenses and I did pay off a student loan, plus we had a pretty lavish Christmas. We have a morgage-but its pretty low, and we have a higher than we like credit card balance-we put some of Marks course work/books and some house expences on it. But with Credit Card percentages running at 1.5-5% its cheaper that way than to take out a student loan-at 6% or personal loan at 9%. We are not able to pay that down as soon as I would like but who knows what will happen. (I'm optimistic) No other debts, just living expenses. We feel though that I was needed much more at home this year-my MIL is gravely ill, I'm looking after a couple of elderly grandparents and my son has had significant trouble in school this year-he's Gt/LD plus a minor handicap requiring Ocupational therapy. Of course no one can tell what will happen, but my husband's job looks as secure as any job now. He just completed a career counciling course on the graduate level, with all the job cutbacks thats going to be a much needed service in this area, plus he just got a promotion! and he's a Child and Family Therapist-with all the anxiety over terrorism and anthrax and poor economy, his is a much needed position..

I am extreamly grateful for this and Thank God that Mark had the oppertunity for this work-of course, I believe God is working through him! But we have had some stomach wrenching hard economic times earlier in our marriage and I still will scrape and stretch that budget til we get that debt/morgage paid off.

-- Kelly (ksaderholm@yahoo.com), December 10, 2001.

In order to stay in Brazil and keep doing what I do here, I'd start teaching English or translating/interpreting.

We have no payments, except our car, and that's with my mother-in-law.

With no income, we'd last maybe two months, three at most.

We still pray, "Give us this day our daily bread."

-- Randal (randal@rhyme.cjb.net), December 10, 2001.

We are lucky enough to have no debts, and our savings are okay, so living frugally . . . at least a year or so. But no more tacos for me . . . now that is suffering, LOL!

-- j.r. guerra (jrguerra@boultinghousesimpson.com), December 10, 2001.

You could have your taco's j.r. !! You would just have to make them home-made!!

-- Melissa (me@home.net), December 10, 2001.

Since I'm on permanent disability, I don't have to worry much about losing my job! I suppose they could take my disability away but I don't expect that to happen. If my husband lost his job, he would just go ahead and retire early. He plans to retire in 4 years anyway at 59. We'd be tight for a few years till he could start getting his retirement but we'd get by ok.

-- Barb in Ky. (bjconthefarm@yahoo.com), December 10, 2001.

We have paid off our mortgage several years ago and drive old paid- for cars. So we could live on our savings for awhile. What would kill us is insurance: home insurance, car insurance (3 drivers, one a teen-ager, soon to be 2 teen-age drivers), property tax. We have a low cc balance. We do also have a daughter in college. We hope to be able to get her through 4 years with no debt. Some savings, plus putting back some each month. When she's through, the next one will start. I am a stay-at-home mom now though I do have a couple of part- time jobs. Still, for insurance, gasoline, utilities, food , etc. would be close to $1000/mo.. Less, if we live on our stored food and/or freeze to death in the dark!! ha ha......So just because you are out of debt as far a mortgage, car payments and credit cards, you still have day-to-day expenses that add up.

-- connie in nm (karrelandconnie@msn.com), December 10, 2001.

Good point Connie. There are many expenses to consider, not just the obvious ones. That is why I have said before to take a look at your complete bills!

-- Melissa (me@home.net), December 10, 2001.

Hello Melissa, My only expenses are the telephone, the internet service and electricity! As long as I can pay for them I am find. Fortunately, our land was paid for in cash as well as my truck and motorcycle. The house is nearly finished and it was all paid for with cash too.

We cull our chickens and eat the eggs they lay. We grow gardens in the Spring, Summer and Fall, which allows Meli to can enough produce to get us through the Winter.

With all this in mind, we live very frugally. I work as a handyman but, during this time of the year there is hardly any type of work. Being out of work is common around here and we make the best of it until Spring.

Back in the city, I had a great paying job but, if I had lost it during the time I lived in Orlando, I would have probably had to file bankruptcy. Since living in the city required more expenses and more money. I am glad I do not live there anymore and I am glad that I do not work at Walt Disney World anymore. There has been a slow down of tourism since 9/11 and most part-time Disney employees have been without work and all Disney full-time employees have been cut back to 32-35 hours weekly.

If I would have been cut back that much, (as I usually worked 50-60 hours a week), I would have been struggling to keep up the expenses. We paid $650 a month in rent. We paid $200 a month on utilities. Not to mention gas, oil and insurance on three vehicles. Plus, cell phone, cable, all our food, etc. It was just enough to cover the $1600.00 minimum we needed to pay for it all.

I feel sorry for those folks that did not make it to the country prior to 9/11. Those ones that have been affected by the lay- offs and closings across the nation should of have anticipated a change in lifestyle in the country. We "back to the landers" have a way of making ends meet as we are resoureful enough to live with what we can produce on our own. Not dependent on big companies to pay our bills.

Sincerely, Ernest

-- http://communities.msn.com/livingoffthelandintheozarks (espresso42@hotmail.com), December 10, 2001.

I don't think that many people realize what an impact the 9-11 tragedy has had on the overall economy. Like people being laid off at the US mint because everyone is turning in their coins. And the tourist industry has been deeply impacted.

Ernest I know what you mean about the construction industry/handyman trade. My husband is in construction and has been off in the winter for the last 16 years. So this really makes you plan ahead.

The biggest bills we would have to deal with are insurance($100) and property taxes($115). The rest include electric ($80), phone($25), internet($22), newspaper($8),trash($10), piano lessons($36) Of course we could eliminate some of these in an emergency, but we went without for years and now enjoy a few luxuries like the daily newspaper and internet service.

-- Melissa (me@home.net), December 10, 2001.

The above dollar amounts are monthly.

-- Melissa (me@home.net), December 10, 2001.

This article is in the new Countryside! We are fortunate enough to get to read it twice! It contains a lot of good info!

-- Lisa in WI (lehman16NOSPAM@vbe.com), December 10, 2001.

I'm in a different situation than most in that I can't lose my job in the conventional sense. I work for myself. That doesn't mean I have any more security than anyone else, however. If business is bad for long I'd have to make a dedision as to how long I feed a struggling enterprise in hopes things turn around. If you're in business for yourself, you can lose ten years of savings from profits in one bad year. A second bad year can put you in debt, out of business and into bankruptcy. I guess you need to "Know when to say 'When,'" if it gets bad and stays bad.

In my case, if I shut my doors now and sold everything out today, I could probably maintain my current lifestyle for 5 years minimum. I have no debt whatsoever aside from whatever I've put on my credit card since I paid off lat month's balance. That estimate assumes I wouldn't do anything to generate an income. I don't see that happening.

If I were to go to work for someone else, I could probably get by without dipping into saved assets for day to day living expenses. When something major hit like needing a newer truck or motorcycle (alright, maybe I don't really NEED a motorcycle at all, but that's another post), I'd probably dip into it rather than borrow, though. The flip side is I'd probably still buy and sell a little 'on the side.' I know I could make at least $500-$1000 a month from that in addition to whatever job income I had.

Maybe it's just confidence in myself and my abilities, but I think I would get along just fine. I'm not as young or as strong as I once was, but I'd get by. I've started and grown a few businesse over the years and honestly believe if I something happened like losing my business property lease and having to close, I'd be fine. Even if I lost everything I believe I'd be back in business for myself inside of three years doing something. There are too many opportunities out there.

-- Gary in Indiana (gk6854@aol.com), December 10, 2001.

well folks i did loose my job in july and just started working again this week. my husband lost his job thanksgiving day!!dont believe all those we are like family commercials wal-mart puts out!! they fired lots of people the week before t-day. we almost lost our home and truck. if my mother hadnt helped us we would have.thank GOD for moms. we have had a real hard time. and there will be no CHRISTMAS this year. not even for the grand kids. we decided to spend the day at a local hospital in the childrens ward this year instead of at home doing nothing. maybe thats what CHRISTMAS is all about.GOD BLESS YOU ALL. CODY

-- cody (urbusted@alltel.net), December 11, 2001.

I am sorry that this article was in countryside and I did not give crdit, I either didn't remember or maybe it is in an issue I didn't get yet.

cody, I am glad you were able to get help from your mother. It osunds like you have a great attitude. christmas isn't just about presents, and families are important.

Gary, I know what you mean, there are many opportunities, but thisis just to assume that you had no income, or maybe couldn't sell any of your assets.

-- Melissa (me@home.net), December 11, 2001.

This is a scarry question Melissa! :o) We live frugal now, but are paying for years of mispent youth. I am trying to get enough to keep our house payment for three months, but it isn't easy. We do budget, and save and are doing much better as we pay off bills and move that amount to the next bill. HOWEVER, there is insurance, and all kinds of things that we use with my husbands job. I just hope that we can get FI (Financially Independant) before he would ever get laid off. I know we would make it somehow, but there would be massive garage sales too. :o)

-- notnow (notnow@blabla.com), December 11, 2001.