Rebuilding The Sprint to FI

… And of Course Disaster Strikes

Its now September of 2018. Things have been going very well indeed. The car loan is getting squashed with bags of money every month, we even followed Money Mustache’s advice and purchased some bicycles. Of course we did it in a non-Mustachian way by buying new, but it’s ok, we have bikes and we even ride them.

So what is the disaster, you ask? Well, Cat has lost her job. Her employer was recently acquired by a larger company and her position has been eliminated. However, we’re in a much better situation now than we were when I lost my job in 2008. This time around, the disaster is mitigated by severance pay and a healthy emergency fund.

C’s severance will keep her at a full salary into early 2019, which gives her breathing space to find a new job. After the severance, she can draw unemployment which is a help as we will be living on just my salary. After that, there is the emergency fund, in case we need it.

One of the regular conversations that we’ve had over the past year or so was how to survive on one salary. If something happened to one of us, and one of us could not work, could we cover our expenses? When we first looked at this (late 2016), the answer was no. My salary was the lower at ~$90k, and with no 401k contribution I could cover everything except one of the cars. However with the changes we’ve made now, I could drop my 401k contribution some but not to zero, and cover all of our expenses. This feels like progress! It would be even easier if that car loan were gone, but we’re almost there.


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