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A stock/bonds portfolio is good to have, but I find that having enough money in the bank, and some actual cash, buys real peace of mind. My advice, try to figur
by rebuilder 8y ago
A stock/bonds portfolio is good to have, but I find that having enough money in the bank, and some actual cash, buys real peace of mind. My advice, try to figure out how long it would take you to get back on your feet if something went wrong (lose your job, your company, your health) and try to save up enough to tide you over for that time.
- bluGill 8y agoDon't forget about insurance. If you lose your health long term insurance is the cheapest way to deal with that. Likewise if you have loved ones who depend on your income life insurance is the cheapest way to ensure they can live without you. Unemployment insurance covers losing a job in some cases (but if you work for yourself check the rules). Your government might provide some of this. Also consider your real needs vs luxury. You have to pay rent, and food. The cheapest phone and internet plan is probably part of your getting a new job. Nearly everything else is optional. You can cut your expenses greatly, walk to the library (free) and read a book for entertainment. Cook your own meals. Most people have an event in their life that puts them out of work for a year. It isn't a big deal so long as you can cover the basics.