Note: this post was written before the election results came out. Now there’s a lot more uncertainty than just DH’s job.
This month (November)
Years left: 0.333333333
P =$1,194.19, I =$20.22, Escrow =$812.79
This month (December)
Years left: 0.25
P =$1,198.91, I =$15.49, Escrow =$812.79
Whenever I start getting used to not worrying about money at all (seriously, I just paid $1.95 processing fee for DC1 to have hot school lunches for a month without trying to optimize not having to pay the processing fee again vs worrying about DC1 deciding zie wants to go back to cold lunch… not to mention not even thinking about the costs of paying for hot lunch!), something happens to add a bit of uncertainty to the mix.
For example, we get an opportunity for unpaid leave or DH decides he hates his job or etc. So I stop not worrying and start paying attention again.
This time DH’s company has asked him (and everybody else) to take a 10% paycut for the next two months. The boss and lead programmer are taking larger cuts.
The reason is a cash-flow problem with an underlying cause coming from employee turnover several years ago resulting in too many little starter grants and not enough longer-term big grants right now. Once this cash-flow problem is resolved, they’ll be ok until April. Which isn’t exactly a long time either.
We don’t need DH’s salary on top of mine for our regular expenses, but we do in order to not care about money at all. To eat out whenever, to max out retirement, to fly to see DH’s family over Christmas instead of spending two days driving (something we’ve already committed to), to just donate money where it’s needed, and so on.
So, once again, we’re back to being glad we’ve saved a lot and not increased our expenses to match our income. I’m not sure how this warning shock will change our spending going forward. It seems like the 30K emergency fund in cash is still what we will want to have, but I probably ought to start aiming for that now instead of in March when the mortgage is finished. [Update: see previous post about how we’re just going to stockpile cash until the US government is sane again. No 30K limit.]
Have you faced income uncertainty? How do you deal with it?