How long can we hang on…

My husband and I sat down with sharpened pencils and sketched out a plan of action. We would have sketched this out earlier but we just received the unemployment numbers on Friday.

The big question…

How long can we hold on without my husband’s job?

Our initial numbers (without unemployment benefits) put us at 8 weeks. Our reductions to debt paired with our cash in savings and unemployment benefits put us at…

9 months.

Had this happened before we had taken control… had this happened before we made the decision to live below our means and reduce debt… we would have made it through a month, maybe two tops.

But now, we’re looking at 9 safe months. 9 months to find a job before things get hairy. Sure we won’t make progress other than minimums and we certainly won’t eat anything other than Ramen noodles but, we can hold on.

I have four words to say –

Thank. You. Dave. Ramsey.

Posted by Beks on October 25, 2009 at 5:00 AM in Debt Updates, General Debt, General Personal Finance, Home Ownership, Living Frugal, job loss | 30 Comments »
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Bob responded:
Posted: October 25th, 2009 at 5:06 am
That is really encouraging! It seems like it would also have another benefit of not making you feel trapped in a job you hate if you know you could go 9 months without a paycheck. Congrats!
My Frugal Miser responded:
Posted: October 25th, 2009 at 7:27 am
What a load off your chest! Wow… this is a compelling testimony to living beneath your means. 9 months should be plenty time for your husband to bounce back. Did you factor in any side work your husband might be able to do while still receiving unemployment? I don’t know if he’s handy or not, but surely there are odd jobs he can do to take a break from job hunting now and then. Finding a job IS a full-time job in itself, and stressful.
John Deflumeri Jr responded:
Posted: October 25th, 2009 at 7:33 am
The wisdom you showed by getting a grip financially pays off now.
Susan responded:
Posted: October 25th, 2009 at 7:47 am
That’s fantastic – that’s got to increase your comfort level quite a bit!

If you’re not kidding about the Ramen noodles – check this page out – 24 difference recipes with Ramen noodles (we lived on them when we were both out of work) – http://budget101.com/ramen_noodle_recipes.htm
maxfolger responded:
Posted: October 25th, 2009 at 8:11 am
A short video that adds a little humor to an issue that’s not a laughing matter: surviving a tough economy.

http://bit.ly/ozqT6
Mysti responded:
Posted: October 25th, 2009 at 8:25 am
Nine months is fantastic! I am sure that you will be back on your feet in no time.
Cynthia responded:
Posted: October 25th, 2009 at 9:44 am
That’s great news!
Dogfood Provider responded:
Posted: October 25th, 2009 at 9:51 am
Wow, this is truly inspiring! Don’t think for a minute that I envy the position you are in, but the way you have worked to get to the point where you can manage for 9 months without your hubby’s gig? That is really admirable! Kudos to you, and wishing your husband good job hunting mojo!
Calvin from immediate debt relief responded:
Posted: October 25th, 2009 at 10:06 am
thanks for the information great food for thought, its amazing how much we don’t want to account for?
Nadia responded:
Posted: October 25th, 2009 at 11:19 am
Whew! All your hard work and dedication to resolving debt has paid off. It is circumstances like this why it is vital that my family (and everyone else) get it’s spending in check.
Sorry about the layoff, but congratulations of having put yourself in a secure financial spot!
9 months, without incurring any more debt, Wow.. just wow!
E.D. responded:
Posted: October 25th, 2009 at 11:20 am
That’s great news. Did your calculation include any federal extensions to the unemployment? I think CA is one of those high unemployment states that qualifies for many, many weeks of UI benefits.

DH just got check 3 of 26 for his UI. He’s had a couple of phone interviews, but no site visits yet.
Kevin responded:
Posted: October 25th, 2009 at 4:22 pm
Wow, that is so much better than I could do right now if I lost my job. Currently, I could last a little more than 1 month. It’s a little bit scary at times.

I count myself fortunate that I have a contract which stipulates when I can and can’t be let go. For example, I can’t be let go (unless there is cause) before June. And I will actually have pay to last until August (because of withheld pay for summer months). On top of that, they are supposed to let me know if I won’t be rehired by the end of April. So I have almost 4 months to find a job and even longer if I cut back a lot.

That is the way it is supposed to work. But anything can happen. And if something extreme does… 1 month is all I have right now.
Canadian Kate responded:
Posted: October 25th, 2009 at 7:55 pm
While I’m pleased it is that long, I actually expect to see he’s working again each time I check your blog. In fact, as I was waiting for it to load tonight, I was chiding myself for checking again so soon, since I had looked on Friday and it is only Sunday so no employer was likely to have called him in the meantime!

Don’t spend based on my premonition, but I have a strong feeling things are turning around for you big-time very soon!
L responded:
Posted: October 25th, 2009 at 8:43 pm
Great news!! You’re gonna have to e-mail Dave with your survival story when this is all done & over!
Symptoms Of Panic Attacks responded:
Posted: October 26th, 2009 at 4:43 am
Great news because not many people could go nine months without a paycheck. I am one of them that could not do it; although I am self employed and have not gotten a steady paycheck for over 4 years now; I still have not saved enough to be able to take a break for 9 months.
Zofie responded:
Posted: October 26th, 2009 at 7:57 am
That is great to hear! We survived on one income after a layoff, not exactly the same situation as you, but cooking lots of crockpot meals really helped.:)
Shakela responded:
Posted: October 26th, 2009 at 1:11 pm
That’s wonderful! 9 months is great! Most emergency funds (if somebody even has one) covers 6 months at best. Kudos to you
Financial Samurai responded:
Posted: October 26th, 2009 at 1:48 pm
9 months is great! I firmly believe your husband will find a job before then, as the economy rebounds and corporates look to rehire in 2010!

Best to you guys!
Jaz responded:
Posted: October 26th, 2009 at 2:43 pm
I work for Dave and folks like you are OUR heroes! Keep up the hardwork and thanks for sharing with us a way to do this in a difficult time. You guys rock!
JvW responded:
Posted: October 26th, 2009 at 3:55 pm
That’s fantastic news! Nine months is a long time to find a new job. I am VERY impressed that anyone can make it that long. When we dropped to one income for 4 months, we had to borrow to make ends meet. I hope to never be in that situation ever again. Great work & good luck to your husband on the job search!
Downturnliving responded:
Posted: October 26th, 2009 at 5:25 pm
This is my first visit to your site. I just got Dave Ramsey’s book, but have not yet read it. Glad to hear it is paying off your you. I am hoping all the suffering folks are going through in this economy will at least result in a long term beneficial change for everyone. A transition to a form of economy that celebrates living below your means over the high speed lifestyle of living on credit would benefit all. The stress of continuous debt alone can make life less fun, but the fear of losing your income is almost incomprehensible.
Lizzie responded:
Posted: October 26th, 2009 at 9:02 pm
That is awesome! If your family is reading this, I have one suggestion for Christmas: the fruit of the month club…man can’t live on ramen alone!
Jessica responded:
Posted: October 27th, 2009 at 12:49 am
THIS! THIS! THIS!

This right here, is why you started the program. Those people screaming FREEEEEDOM on Fridays get it. Now, you get it. And you can’t explain it to someone who is living paycheck to paycheck, what it’s like to be able to figure out that you’re going to make it.

Blessings to you. May this job loss result in something truly awesome for your family
Jen responded:
Posted: October 27th, 2009 at 8:53 am
Wow!!! That’s great! Excellent job on saving and cutting costs! Looks like you started tackling your debt in time – early enough to be ready for this bump in the road. And here’s hoping you won’t need to last the full 9 months – that your husband will find a job soon
debtmaven responded:
Posted: October 27th, 2009 at 3:31 pm
Congratulations on smart planning! I remember the days (not too long past) when I’d plan on using my personal loan from the bank in case I overspent during the month and my bank account ran low (pre-budget of course)! It’s amazing to see such a positive result during such an unfortuante situation! Keep up the inspirational good work.
Mar responded:
Posted: October 27th, 2009 at 5:17 pm
Beks, that is fantastic! I’m really impressed. I need to sit down and run numbers on how long we could do the same.

I don’t know if you have Boston Market near you, but they are running a special this week. With a coupon for their site (which is taking a long time to load), you can get a chicken (dark or white meat) meal with mashed potatoes and corn bread for $1. One meal per person per coupon per visit is the limitation. We just had ours tonight. It may be a little more than ramen noodles, but I have leftovers from my chicken breast. They would probably go well with the noodles the next day!
scheng1 responded:
Posted: October 27th, 2009 at 9:14 pm
Maybe 20 years later, you will be thankful for the job loss.
Without jobloss, you probably wont think of blogging to make money.
Without jobless, you probably wont think of creative ways to start online business.
Wish you stumble onto some jewels in cyberspace.
Matt @ Self Improvement Resources responded:
Posted: October 28th, 2009 at 3:30 pm
I think it is a beautiful thing that you can go that long without your husbands job, and I do commend you all for that.

Most people live paycheck to paycheck!

So now your husband can find a good job instead of jumping on the first thing available. That is another added benefit. I wish you all the best!
Nicole responded:
Posted: October 28th, 2009 at 10:33 pm
Dave Ramsey is awesome isn’t he! He makes you think about the future which most of us tend not to do. Good on you!
WSF1 responded:
Posted: October 30th, 2009 at 6:32 pm
Wow! You are an inspiration. I am saying a prayer for you & your husband and I hope he is able to find desirable employment soon!

Where I am in this journey, if I lost my job right now, I would barely make it one month. I am actually beginning a tweaked Dave Ramsey envelope system tomorrow.