How long can you survive without a monthly income?

[Dancing Fire]

I have a lot friends who was working in the restaurant business had already been lay off from their jobs. How are people gonna pay their mortgage/rent, car payments? ..

 

[YadaYadaYada]

This is exactly my concern, all these people that have lost their jobs and now as states close and tell people to stay inside they are not providing any resources for people who suddenly can't work. What a $hit show this is. So people can't work and are supposed to support themselves how exactly?

Luckily DH is considered essential because the power grid has to keep going. If not for that we would be in huge trouble.

 

[Karl_K]

One day notice 350-400 people with well paying jobs at a local automotive parts factory laid off and told the jobs are not coming back, they are going to use this as a excuse to move the production to their Mexico plant when it comes back up.

 

[OoohShiny]

By some miracle, through a combination of circumstances, I should be able to clear all my credit card debt ASAP, which will massively reduce my monthly outgoings.

I've been paying so much interest for, what, 10 years? 15 years? I am so fed up with it, I just want the debt gone, the lesson has been thoroughly learnt and I don't plan on doing it again.

I could put some money aside and transfer a remainder to a 0% card and pay it down slowly, but I just want to clear it and move on from a zero position for the first time in probably 20 years.


I am jobless at the moment so it means I will have only a small buffer to live off, perhaps the equivalent of two months wages in my last job, but in this coronavirus world, I'm not going out anywhere and not buying anything substantial anyway, so outgoings are much smaller.

We are also lucky enough to be living rent-free at the moment, so don't have that expense and worry, although we are aware that could end at any time.


I feel so lucky to be in this position, I am truly grateful and am trying to use the time and freedom I currently have to help a family friend with an attempt to rescue their child from the clutches of the manipulative, abusive other parent of the child via court processes. It is quite stressful and we may not be successful, thanks to not being lawyers and not being able to afford them, but we can try.


The UK government has announced 80% of salaries will be paid by them via grants to businesses, but it is not that simple as various conditions apply, and it is unclear how the self-employed and those on zero-hour contracts will benefit from such funding, if at all. There are also loans to businesses being given out and 3-month payment holidays for mortgage payments being offered, but it seems that reducing the infection speed of coronavirus (in order to allow ICU facilities to not be overwhelmed) will take 12+ months and a cycle of extreme lockdown, 'release', extreme lockdown, 'release'...

I believe many businesses will go under, though. It seems many are only surviving 'hand to mouth', rather than having a 3-month buffer for all outgoing expenses, so a 4-week shutdown alone is enough to send them under.

All these businesses failing, all these people out of work, all this reduction in spending power... it will either mean 'the West' adapts to a new strategy that doesn't involve the creation of money as the sole economic driver, or we will repeat the same cycle yet again, as we have done in history.


All in all, it's an opportunity for a step-change in society, which could be good or bad.

 

[whitewave]

My husband is told his partners the other day that we will be going 1 month without a paycheck to keep the payroll going and the overhead paid. He’s dropping all full time employees down to 32 hours to help with payroll and to mitigate their exposure (his physician building is connected to the hospital). Employees who can work at home are, and they have started telemedicine when they can.

He told everyone at the surgery center that there will be no first quarter bonuses to keep payroll and expenses going, etc.

So, yeah, we can manage this for a few months but I won’t be buying anything any time soon.

 

[whitewave]

One day notice 350-400 people with well paying jobs at a local automotive parts factory laid off and told the jobs are not coming back, they are going to use this as a excuse to move the production to their Mexico plant when it comes back up.

How heartless!!!

 

[OreoRosies86]

I can’t. And I’m usually not so much of a nihilist because I have children, but this is just an absolute sh!t show.

 

[YadaYadaYada]

I can’t. And I’m usually not so much of a nihilist because I have children, but this is just an absolute sh!t show.

My sentiments exactly.

 

[Asscherhalo_lover]

Maybe 4 months before I have to tap into my retirement...

 

[Bron357]

Buckle up everyone, it’s going to be a rough ride.
Most jobs are under threat, unless you actually “do” something, “grow” something or “make” something practical, everything else is just fluff.

 

[MelloYello8]

Right before all this, we were prepared to put money into an investment property and even made an offer on one but were (fortunately) outbid, so now we will be holding onto the cash for a rainy day, or many, until we feel comfortable buying real estate again. My income is pretty stable and hubby’s is less so, but our lifestyle is such that we can get by on a single income. We are keeping a pulse on our extended family to make sure they are okay throughout the coming weeks/months.

 

[missy]

So just putting this out here fyi. Might not be a bad idea to start buying as soon as the market starts to recover but of course we don't have a crystal ball so not sure when that will be. But when it does start to recover and go up that would be the time to put some money into it. If we have any money left at that time that is.

And of course there is "Dollar Cost Averaging" as another option if one wants to invest.

 

[Dancing Fire]

So just putting this out here fyi. Might not be a bad idea to start buying as soon as the market starts to recover but of course we don't have a crystal ball so not sure when that will be. But when it does start to recover and go up that would be the time to put some money into it. If we have any money left at that time that is.

And of course there is "Dollar Cost Averaging" as another option if one wants to invest.

Both of our IRAs are worthless. We max out our IRAs for over 20 yrs and it is now worthless.. My stock accounts are worthless. When I buy you sell!.

 

[OboeGal]

One day notice 350-400 people with well paying jobs at a local automotive parts factory laid off and told the jobs are not coming back, they are going to use this as a excuse to move the production to their Mexico plant when it comes back up.

That's horrible!

 

[strawrose]

Technically, for a long time, but we don’t want to tap into those reserves. My job is shut down. I will look at some temp internet jobs if it lasts more than a month. :/

 

[anne_h]

I have an emergency fund that will last several months if I lose my income. Also, if I do get laid off, I would normally receive a severance of ~6 months. Although in these times, I'm not counting on anything...

Given my financial situation, time horizon, and risk tolerance, I am also continuing to invest in the stock market. Personally, I think there is more downside to come, but I'm all about dollar cost averaging.

Side note - Almost everyone with my current employer has moved to working from home (as have I). Like many places, schools in my area are closed, so my kids are also home full-time. I am supportive of these measures, but am definitely finding it stressful.

All that said, I feel the coronovirus situation is really terrible for everyone. My thoughts go out to those impacted the most (health-wise, financially, etc).

 

[MelloYello8]

And of course there is "Dollar Cost Averaging" as another option if one wants to invest.

Since we have more than a couple decades before we can draw without a tax penalty, we are continuing to max out our regular retirement contributions. I can’t imagine how I’d feel about this if we were closer to retirement. We are trying to diversify with real estate so we can also collect rental income.

 

[Elizabeth35]

Since we have more than a couple decades before we can draw without a tax penalty, we are continuing to max out our regular retirement contributions. I can’t imagine how I’d feel about this if we were closer to retirement. We are trying to diversify with real estate so we can also collect rental income.

This is a smart move if you remain employed.
During the 2009 melt-down I continued contributing the max to my 401K (and did not look at my statements-lol). This strategy served me well and I ended up far ahead of my friends who did not continue investing during the downturn.

My heart goes out to those who lose jobs or have reduced hours during this crisis.
It's going to be a very rough ride for many, many people.

 

[dk168]

My work is virtual so I am still working and earning.

I too have friends in the hospitality sector, and I worry about them.

I offered to help financially in case they need it.

Not wealthy by any means, however I don't need my pension money right now, therefore I shall do what I can to help.

DK

 

[Daisys and Diamonds]

One day notice 350-400 people with well paying jobs at a local automotive parts factory laid off and told the jobs are not coming back, they are going to use this as a excuse to move the production to their Mexico plant when it comes back up.

i was wondering if some board rooms would use this crisis to their advantage

 

[Daisys and Diamonds]

im kind of hoping the housing market will get a reality check and once people are working again maybe people will be able to buy first homes again with out having to move to remote rural areas to be able to afford the deposits and the repayments

 

[Dancing Fire]

Since we have more than a couple decades before we can draw without a tax penalty, we are continuing to max out our regular retirement contributions. I can’t imagine how I’d feel about this if we were closer to retirement. We are trying to diversify with real estate so we can also collect rental income.

I don't have anything to draw from. Even if I live to 200 yrs old I'll still be taking my $3k tax deduction on stock losses.

My BIL & SILs both have rental properties, but if their renters loses their jobs how the heck they gonna pay rents?

 

[OoohShiny]

Both of our IRAs are worthless. We max out our IRAs for over 20 yrs and it is now worthless.. My stock accounts are worthless. When I buy you sell!.

You're not that old DF so is it not the case that you can just sit on what you have and wait for the market to (hopefully) come back up again?

If you're totally invested, might as well just ride it out rather than taking the hit by withdrawing (if you can even do so)?

Mind you, with CV only just kicking off in the US and most countries following the same trendline in terms of growth in numbers of infected people and deaths from it, along with the financial fallout of job losses etc., I think the bottom has yet to be found...


I have read a few posts on the interweb that this sort of crisis is just what the mega-rich want - everything drops in price and they can just hoover it up with their cash reserves, making them even richer when things do rise again (which I'm sure they will).

Much like 2008, it's the little guys who get screwed over while the 1% of the 1%ers make a killing.

 

[Elizabeth35]

DF-
We also depend on rental income. During hard times landlords also suffer reduced incomes as renters either stop paying or leave. Then you have a vacancy while you find a new tenant.
We survived 2009 real estate meltdown.
Our residential rentals are lower range starter properties--they have been very recession proof. Worst case is higher turnover which means you lose a month or two of income.
If your BIL & SIL have renters that lose their jobs, they can work with them if it is temporary. I'm assuming a higher end rental.
Lower end rentals--you get another renter who is employed.

 

[Dancing Fire]

If your BIL & SIL have renters that lose their jobs, they can work with them if it is temporary. I'm assuming a higher end rental.
Lower end rentals--you get another renter who is employed.

That's what they own. The good news for them is their renters are on section 8 which are paid by the taxpayers every month.

 

[Elizabeth35]

That's what they own. The good news for them is their renters are on section 8 which are paid by the taxpayers every month.

We also have many Section 8 renters---so your BIL and SIL have the guaranteed monthly payment for the government portion. Downside is that if the renters pay part of the rent they may struggle.

We try to work with our renters. Right now we are trying to view this as temporary and help our tenants through this rough time.

We are fortunate that we live far below our means.So if our income is reduced we can survive.
Feel very sorry for those who are struggling or just barely getting by.

 

[jordyonbass]

I am going to feel a bit guilty for saying this but we are in a fairly good position to deal with this. If the TP apocalypse occurs and we both lose our day jobs we should be OK; we are debt free with a large savings for our first home which I can reallocate to living expenses if needed, we have our business selling Opals and we're temporarily living with my father while house hunting so recently have had a drop in living expenses.

If things don't get better in a year I might be a bit more concerned than I am now. But for now we are OK.

 

[MelloYello8]

We try to work with our renters. Right now we are trying to view this as temporary and help our tenants through this rough time.

We are fortunate that we live far below our means.So if our income is reduced we can survive.
Feel very sorry for those who are struggling or just barely getting by.

Our renters for our only rental property are pensioners so if anything, this has caused them to defer maintenance that we would pay for because they don’t want to risk letting anyone in the house.

I also realized my monthly expenses have gone down because I don’t need as much gasoline to commute, I can’t get a haircut, acupuncture, or a facial, can’t go out for food, and I can’t take my kid to her normal hangouts or weekend classes. My jeweler has said NOT to send my ring in for sizing shots now. The weather is nice and there is more daylight, so lower gas and electricity bills too. Spending is at a minimum but mostly by circumstance and not choice. On the plus side, I’m cooking clean meals more and my daughter and I are enjoying simple things now.

 

[lyra]

I don't want to know. Probably not long. My husband has been downsized 5 times in the past. In one 3 year period he was out of work for 18 months. Then another time it was 2 years. He didn't collect unemployment, I don't know why, but we used up a lot of our retirement funds and he's 60. Sooo. Don't know, don't want to know, the future doesn't exist to me, just the present moment.

 

[Daisys and Diamonds]

Our renters for our only rental property are pensioners so if anything, this has caused them to defer maintenance that we would pay for because they don’t want to risk letting anyone in the house.

I also realized my monthly expenses have gone down because I don’t need as much gasoline to commute, I can’t get a haircut, acupuncture, or a facial, can’t go out for food, and I can’t take my kid to her normal hangouts or weekend classes. My jeweler has said NOT to send my ring in for sizing shots now. The weather is nice and there is more daylight, so lower gas and electricity bills too. Spending is at a minimum but mostly by circumstance and not choice. On the plus side, I’m cooking clean meals more and my daughter and I are enjoying simple things now.

this is all good
well probably not for the hairdresser and the nail lady

but im completlt out of the loop on some things

without being checky can i serously ask what a clean meal is ?
as opposed to a dirty meal ?