I was taught to save from as long as I can remember by my Grandpa and other family members. If I made a quarter I had to put at least ten cents in the piggy bank. I can remember my first passbook savings account Mr. D'Amato opened for me. He was our bank president and more importantly my best friend, Dottie's dad. I loved loved loved putting money into the bank. I especially enjoyed this thing called "interest". Maybe that is why I am partly at sales? I listened to my grandfather a lot. He was pretty much one of the key people in my circle until I went to school. He was a killer insurance salesman. Grandpa retired comfortable and early with a built in job after retirement... playmate to his granddaughter that lived next door in the colonial duplex my family has lived in since 1908.
I am especially grateful for these lessons now that I am entering into my third month of unemployment. My husband and I have always saved money. Until the last move back to Connecticut, we have owned homes that either of us could support in case of a job loss or illness. I have thrown 15% into my 401k as much as possible since I was eligible. He has done the same thing. Yah, we took a beating with everyone else but at least I had something to get beat up over. Half is still better than nothing!
While I have always been good about saving for retirement, he has always been very protective of a nest egg. The emergency money fund is under his control. He demanded that it was to be kept in a simple savings account like the one I had when I was six years old. Thank God I let him!
Beyond this, last year I began to think it might not be a bad idea to have a little slush fund that wasn't in the hands of the broker off supposedly growth into a fortune. I did this. It has made the pain of an 80% drop in income at least a bit easier to get through. I threw in my commission checks, expense checks and a couple hundred here and there. It has made an incredible difference. We have cut back on everything . However, we can still do some things because we had been careful when we didn't appear to need to be. Have my husband and I made financial mistakes? Absolutely! We have too much car debt and even though I love my home the price of it that is now close to under water I wish we had something smaller and cheaper from time to time.
Everyone is going to splurge on something. (Shoes, shoes, shoes) It is critical to learn from those of us that are making up the 10% of the population that is seeking work. Nest eggs are can save you. I encourage everyone to make sure they have one. Make sure you have the cash on hand to survive financial in case you find yourself in the wonderful club I know belong to on the unemployment line.
It is important to ask people that are on unemployment in your state what they are taking home. Look at that and your monthly bills. What will you need to be able to pull from savings to off set the gap?
