If you lost your income, how long before you got behind on bills?

sea-scooby · 03-25-2009, 11:46 AM

I was reading an article about how a large percentage of people live paycheck to paycheck, have no real saving and would be totally screwed and behind on bills without an income in as little as two weeks. I believe it said around 46% of all Americans could not even make it 1 month without an income.

I'm curious how the people on this forum compare.

I personally like to buy stuff, but my wife in pretty conservative with money so we keep enough in savings to cover 6 months of basics with no income. Basically mortgage, utilities and food. We could cut out all the other "extras" and be ok for a while.

EvilDan · 03-25-2009, 11:49 AM

I'm in a particularly good situation right now. I moved back home a few months ago to save up some money.. so technically Unemployment Insurance would cover everything.

I have my cell phone bill, some rent I pay to my folks to help out, insurance and the monthly bill for the Forester. Very minimal stuff. No debt (besides some for my Forester).

sea-scooby · 03-25-2009, 11:53 AM

Poll is up!

Real Lyte · 03-25-2009, 11:56 AM

What do I put if I am living basically on school loans?

lol I love putting net worth of 0 (negative) on taxes, makes me feel good about myself lol.

JeffLee · 03-25-2009, 12:05 PM

My wife and I live paycheck by paycheck...
Yes.. it is sad and not safe to do.. but I work 2 part time jobs.. and my wife works too..
No car payment.. but we have a mortgage and bills and such.. we barely make it by...

and this winter, we bought winter tires... and it hit us pretty hard.. yah.. it is only 900 dollars.. but that's a big chunk of our income.. and we are still suffering from it:s..

gah.. I wish I had a nice career ...

abacall · 03-25-2009, 12:15 PM

I'm about 2 mo. out at best. But I'm also a tenured teacher so loss of income is unlikely. I also have short and long term disability as well as extra coverage on my assets in case of inability to work.

Tuned200 · 03-25-2009, 12:22 PM

I rencently went without an income for 1 month, and well, I was laid off for 5 weeks, and only got unemployment for 3 out of 5. Even on umemployment drawing the maxium income was still about 55% of what I was making. We made it along fine, and as typical had to use our money more wisely, but still got along.

When I draw my ESOP money in the next 5 years, and roll it over(to something with almost no risk, depending on the market then), we will be set for a long while. We have even been discussing opening a small business depending on the ecomony and world markets.

Arthrogrian19 · 03-25-2009, 12:25 PM

I'd be able to pay bills for ~6 months.

I changed my direct deposit allocation late last year so that 17.5% of my take-home pay goes into a savings account. Between my tax refund and some spare change, I can almost fully fund my Roth IRA for the year, but I might only do half and put the rest into my rainy day fund. Hmm...

Real Lyte · 03-25-2009, 12:26 PM

Well I voted the last one because I consider my degree to be an investment in which I receive both grant (4k/yr) and financial aid (8k/yr which I have to pay back though). At my current rate of living I don't even need that much, I can live off of about 700$ per month (not including tuition/books). I would say I am living as efficient as possible (besides eating ****ty food, my one splurge is organic foods and home cooking).

Duderotomy · 03-25-2009, 12:28 PM

well since I've only been out of college and employed full-time for just less than a full year... Yes I'm living pay cheque to pay cheque.

ArcadeTom · 03-25-2009, 12:34 PM

I've managed to get enough in a savings account to cover 3 months of mortgage and very basic bills (credit-card-blood-suckers will just have to wait). If it went longer than that, then I have my long-term savings / retirement which would (after taxes) get me for a year or more.

toddlamp · 03-25-2009, 12:48 PM

Ha, i'd be screwed almost immediately. I got into financial trouble in college that I am STILL working off. I have some money left over from my tax refund but i'd definitely be in trouble. However, our 5 yr contract has 4yrs left and unless I do something stupid should have a job for at least that long.

Tezcatlipoca · 03-25-2009, 01:55 PM

Just on savings, I've got 3 months rent / bills / living expenses and 5 months car payments in the bank. Fortunately, my job is quite secure and my contract includes a clause for 6 months salary if I'm laid off.

tre36 · 03-25-2009, 01:57 PM

I don't have much in personal savings but can possibly get by 2-3 months without income. If I did lose my job, I got a huge chunk in my retirement that either has to be rolled over or cashed out if I moved job/layoff/etc. Worst case scenario is to cash out but even after taxes I could survive without income for quite some time.

sterickson · 03-25-2009, 02:19 PM

On April 12th it will be two years since I lost my job. Between severance pay, unemployment, savings, a little consulting here and there, and ad revenue/donations from an iPhone software download site I run, I've just managed to get by without being late on any bills. I've also used my credit cards to supplement when needed.

The severance is used up, the savings is nearly exhausted, the unemployment is nearly up,my consulting client went bankrupt and Apple's App Store has nearly wiped out my ad/donation revenue.

If I don't find a job soon, this will probably be the year that my credit is ruined and I lose my house. After looking for two years though, I don't hold out a lot of hope.

Bleh.

-ste

View Poll Results: With zero income, I can stay up on my bills for...
Less than 2 weeks. I barely squeek by as it is.	7	9.72%
maybe a month, but definitely not much longer.	10	13.89%
2-3 months. I have a small cushion is savings.	16	22.22%
3-6 months. I've set aside a nice chunk just incase!	16	22.22%
6 months +. I'm good with money like that!	14	19.44%
Income? I currently live off my saving/investments	9	12.50%
Voters: 72. You may not vote on this poll

03-25-2009, 11:46 AM	#1 (permalink)
sea-scooby The Sub kit guy Contributing Member Join Date: Jan 2006 Location: Renton, Wa Posts: 12,429 Gallery: 0 iTrader: 65 / 100%	If you lost your income, how long before you got behind on bills? I was reading an article about how a large percentage of people live paycheck to paycheck, have no real saving and would be totally screwed and behind on bills without an income in as little as two weeks. I believe it said around 46% of all Americans could not even make it 1 month without an income. I'm curious how the people on this forum compare. I personally like to buy stuff, but my wife in pretty conservative with money so we keep enough in savings to cover 6 months of basics with no income. Basically mortgage, utilities and food. We could cut out all the other "extras" and be ok for a while. __________________ 05 Forester XTi Premium M/T (bobbytuned VF39)(his) 05 Forester X A/T (hers) My Journal page Last edited by sea-scooby : 03-25-2009 at 11:55 AM.

03-25-2009, 11:53 AM	#3 (permalink)
sea-scooby The Sub kit guy Contributing Member Join Date: Jan 2006 Location: Renton, Wa Posts: 12,429 Gallery: 0 iTrader: 65 / 100%	Poll is up! __________________ 05 Forester XTi Premium M/T (bobbytuned VF39)(his) 05 Forester X A/T (hers) My Journal page

03-25-2009, 11:56 AM	#4 (permalink)
Real Lyte Join Date: Sep 2007 Location: Southern Tier, NY! Posts: 2,637 Gallery: 0 iTrader: 2 / 100%	What do I put if I am living basically on school loans? lol I love putting net worth of 0 (negative) on taxes, makes me feel good about myself lol. __________________ SF '99L A/T (Mine) & '95LS Legacy A/T (hers)

03-25-2009, 12:05 PM	#5 (permalink)
JeffLee Join Date: Feb 2008 Location: Black Creek, BC. Posts: 1,026 Gallery: 0 iTrader: 0 / 0%	My wife and I live paycheck by paycheck... Yes.. it is sad and not safe to do.. but I work 2 part time jobs.. and my wife works too.. No car payment.. but we have a mortgage and bills and such.. we barely make it by... and this winter, we bought winter tires... and it hit us pretty hard.. yah.. it is only 900 dollars.. but that's a big chunk of our income.. and we are still suffering from it:s.. gah.. I wish I had a nice career ... __________________ O3 XS MT Go Canucks Go!

03-25-2009, 11:49 AM	#2 (permalink)
EvilDan Join Date: Feb 2009 Location: Ottawa, Ontario, Canada Posts: 408 Gallery: 0 iTrader: 0 / 0%	I'm in a particularly good situation right now. I moved back home a few months ago to save up some money.. so technically Unemployment Insurance would cover everything. I have my cell phone bill, some rent I pay to my folks to help out, insurance and the monthly bill for the Forester. Very minimal stuff. No debt (besides some for my Forester).

03-25-2009, 12:15 PM	#6 (permalink)
abacall I found my Contributing Member Join Date: Nov 2006 Location: Salt Lake City, Utah '04 XTi 5MT VF39 Posts: 4,020 Gallery: 0 iTrader: 14 / 100%	I'm about 2 mo. out at best. But I'm also a tenured teacher so loss of income is unlikely. I also have short and long term disability as well as extra coverage on my assets in case of inability to work. __________________ Aerodynamics are for people who can't build engines. -Enzo Ferrari Want to see my Fozz?

03-25-2009, 12:22 PM	#7 (permalink)
Tuned200 Join Date: Jan 2008 Location: Florence, KY Posts: 7,549 Gallery: 0 iTrader: 17 / 100%	I rencently went without an income for 1 month, and well, I was laid off for 5 weeks, and only got unemployment for 3 out of 5. Even on umemployment drawing the maxium income was still about 55% of what I was making. We made it along fine, and as typical had to use our money more wisely, but still got along. When I draw my ESOP money in the next 5 years, and roll it over(to something with almost no risk, depending on the market then), we will be set for a long while. We have even been discussing opening a small business depending on the ecomony and world markets. __________________ VF48 4EAT MONSTER

03-25-2009, 12:25 PM	#8 (permalink)
Arthrogrian19 F****n' A, Man! Contributing Member Join Date: Nov 2006 Location: NW Portland, OR Posts: 2,791 Gallery: 0 iTrader: 4 / 100%	I'd be able to pay bills for ~6 months. I changed my direct deposit allocation late last year so that 17.5% of my take-home pay goes into a savings account. Between my tax refund and some spare change, I can almost fully fund my Roth IRA for the year, but I might only do half and put the rest into my rainy day fund. Hmm... __________________ '08 FSXT, GRP, 4EAT

03-25-2009, 12:26 PM	#9 (permalink)
Real Lyte Join Date: Sep 2007 Location: Southern Tier, NY! Posts: 2,637 Gallery: 0 iTrader: 2 / 100%	Well I voted the last one because I consider my degree to be an investment in which I receive both grant (4k/yr) and financial aid (8k/yr which I have to pay back though). At my current rate of living I don't even need that much, I can live off of about 700$ per month (not including tuition/books). I would say I am living as efficient as possible (besides eating ****ty food, my one splurge is organic foods and home cooking). __________________ SF '99L A/T (Mine) & '95LS Legacy A/T (hers)

03-25-2009, 12:28 PM	#10 (permalink)
Duderotomy Join Date: Aug 2008 Location: Pointing Out The Obvious Posts: 5,915 Gallery: 0 iTrader: 7 / 100%	well since I've only been out of college and employed full-time for just less than a full year... Yes I'm living pay cheque to pay cheque. __________________ MY07 FSXT MT VF43'd '90 Nissan Skyline GTS-t

03-25-2009, 12:34 PM	#11 (permalink)
ArcadeTom Join Date: Jun 2008 Location: Arcade, Georgia Posts: 914 Gallery: 23 iTrader: 1 / 100%	I've managed to get enough in a savings account to cover 3 months of mortgage and very basic bills (credit-card-blood-suckers will just have to wait). If it went longer than that, then I have my long-term savings / retirement which would (after taxes) get me for a year or more. __________________ 2009 XT, Camillia Red Pearl

03-25-2009, 12:48 PM	#12 (permalink)
toddlamp President of MarkyD fan club Contributing Member Join Date: Jan 2006 Location: Laurel, MD Posts: 11,605 Gallery: 1 iTrader: 11 / 100%	Ha, i'd be screwed almost immediately. I got into financial trouble in college that I am STILL working off. I have some money left over from my tax refund but i'd definitely be in trouble. However, our 5 yr contract has 4yrs left and unless I do something stupid should have a job for at least that long. __________________ 06XT MT CGM Blouch TD05-18g 8cm equipped

03-25-2009, 01:55 PM	#13 (permalink)
Tezcatlipoca Join Date: Jan 2009 Location: Columbia, MD Posts: 87 Gallery: 0 iTrader: 0 / 0%	Just on savings, I've got 3 months rent / bills / living expenses and 5 months car payments in the bank. Fortunately, my job is quite secure and my contract includes a clause for 6 months salary if I'm laid off. __________________ 2009 Forester 2.5x Premium Current MPG: 24.7 :-(

03-25-2009, 01:57 PM	#14 (permalink)
tre36 Super Moderator Join Date: Jan 2006 Location: Kent, WA Posts: 2,955 Gallery: 0 iTrader: 2 / 100%	I don't have much in personal savings but can possibly get by 2-3 months without income. If I did lose my job, I got a huge chunk in my retirement that either has to be rolled over or cashed out if I moved job/layoff/etc. Worst case scenario is to cash out but even after taxes I could survive without income for quite some time. __________________ MY03X-AT

03-25-2009, 02:19 PM	#15 (permalink)
sterickson Join Date: Oct 2008 Location: Pennsylvania Posts: 214 Gallery: 0 iTrader: 1 / 100%	On April 12th it will be two years since I lost my job. Between severance pay, unemployment, savings, a little consulting here and there, and ad revenue/donations from an iPhone software download site I run, I've just managed to get by without being late on any bills. I've also used my credit cards to supplement when needed. The severance is used up, the savings is nearly exhausted, the unemployment is nearly up,my consulting client went bankrupt and Apple's App Store has nearly wiped out my ad/donation revenue. If I don't find a job soon, this will probably be the year that my credit is ruined and I lose my house. After looking for two years though, I don't hold out a lot of hope. Bleh. -ste __________________ 2004 Forester XT AT, Aspen White

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