Comments on: Preparing for Tough Times http://www.canadiancapitalist.com/preparing-for-tough-times/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: telly http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-180467 telly Tue, 27 Jan 2009 18:19:54 +0000 http://www.canadiancapitalist.com/?p=1651#comment-180467 Like CC & Matt, my husband and I can survive on one income indefinitely (although the RRSP contributions would be scaled back). Unfortunately, both of us work in the same volatile industry. :( Kind of fortunate & unfortunate at the same time, we had the opportunity to test this recently. In November I was laid off temporarily for 2 months. We discovered that we were able to live comfortably on my husband's paycheque alone (he makes only slightly less than me), even during the typcially expensive Christmas season. Because the lay off was temporary, there was no severance but we were still able to sock away my unemployment cheques entirely. They went directly to the emergency fund account which isn't quite at 3 months but now that I'm back at work...it'll be there very soon. I've learned to "believe" in an Emergency Fund over the past few months! Like CC & Matt, my husband and I can survive on one income indefinitely (although the RRSP contributions would be scaled back). Unfortunately, both of us work in the same volatile industry. :(

Kind of fortunate & unfortunate at the same time, we had the opportunity to test this recently. In November I was laid off temporarily for 2 months. We discovered that we were able to live comfortably on my husband’s paycheque alone (he makes only slightly less than me), even during the typcially expensive Christmas season. Because the lay off was temporary, there was no severance but we were still able to sock away my unemployment cheques entirely.

They went directly to the emergency fund account which isn’t quite at 3 months but now that I’m back at work…it’ll be there very soon. I’ve learned to “believe” in an Emergency Fund over the past few months!

]]> By: matt http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179986 matt Fri, 23 Jan 2009 18:59:20 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179986 CC, I am in a very similar boat as you. Wife's job is recession proof, mine is not (electronics industry ahh) but we can survive indefinitely on one income. I feel pretty comfortable with just 2 months of emergency funds. These days I keep wondering if I should invest any savings in this highly volatile market or just keep it in a high interest account. Any thoughts? CC, I am in a very similar boat as you. Wife’s job is recession proof, mine is not (electronics industry ahh) but we can survive indefinitely on one income. I feel pretty comfortable with just 2 months of emergency funds.

These days I keep wondering if I should invest any savings in this highly volatile market or just keep it in a high interest account. Any thoughts?

]]> By: Free Online Backups and Weekend Reading | Million Dollar Journey http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179936 Free Online Backups and Weekend Reading | Million Dollar Journey Fri, 23 Jan 2009 12:22:04 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179936 [...] Canadian Capitalist has a timely list in preparing for tough times. [...] [...] Canadian Capitalist has a timely list in preparing for tough times. [...]

]]> By: Four Pillars Investing http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179916 Four Pillars Investing Fri, 23 Jan 2009 10:02:17 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179916 [...] Capitalist wrote about preparing for tough times (ie layoffs [...] [...] Capitalist wrote about preparing for tough times (ie layoffs [...]

]]> By: EconStudent http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179481 EconStudent Tue, 20 Jan 2009 03:24:59 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179481 Phil S: Nice!!! Keep on spending so that Canada won't enter a deflationary cycle. Phil S: Nice!!! Keep on spending so that Canada won’t enter a deflationary cycle.

]]> By: Phil S http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179478 Phil S Tue, 20 Jan 2009 02:01:51 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179478 How do you calculate 6 months of "rainy day" funds? Does this include or exclude the consideration of income from EI? If you include the consideration of EI income, I'd have more than enough in my rainy day fund to last 1 yr. If you exclude EI, then it would still be about 6 months or so... In terms of consumer spending, I'm actually quite contrarian as I didn't spend a heck of a lot of money last year. So far this year, I've been spending as much as I make, practically. How do you calculate 6 months of “rainy day” funds? Does this include or exclude the consideration of income from EI? If you include the consideration of EI income, I’d have more than enough in my rainy day fund to last 1 yr. If you exclude EI, then it would still be about 6 months or so…

In terms of consumer spending, I’m actually quite contrarian as I didn’t spend a heck of a lot of money last year. So far this year, I’ve been spending as much as I make, practically.

]]> By: EconStudent http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179469 EconStudent Tue, 20 Jan 2009 00:11:16 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179469 Sara: I think internet is very important for me even though I can use it at school. I have internet/cell phone. I don't have home phone or cable. The trick with my cell phone is that I have unlimited calling after 6pm and weekends. No need for home phone in my opinion. I use the Link phone card that charge half a cent for Canadian and US long distance and very very low rate for global calling. Sara: I think internet is very important for me even though I can use it at school. I have internet/cell phone. I don’t have home phone or cable. The trick with my cell phone is that I have unlimited calling after 6pm and weekends. No need for home phone in my opinion. I use the Link phone card that charge half a cent for Canadian and US long distance and very very low rate for global calling.

]]> By: Barry http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179462 Barry Mon, 19 Jan 2009 21:24:12 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179462 Although I agree with the idea of stashing money for the bad times. I would also note this will not stimulate the economy. It is for this reason I think those who are talking about stimulous are dreaming if they think it will come from individual spending (i.e for example providing individual tax cuts at this time). Truth is stimulous of the type that is needed will only come from Gov spending at least in my opinion. Will be interesting to see the budget. I can only hope the gov does not spend away our future and our kids futures. Easy for me to say I guess given my job security. I just dread the idea of financing today with someone elses future. Also of interest is that it would seem I live nearby CC. Although I agree with the idea of stashing money for the bad times. I would also note this will not stimulate the economy. It is for this reason I think those who are talking about stimulous are dreaming if they think it will come from individual spending (i.e for example providing individual tax cuts at this time). Truth is stimulous of the type that is needed will only come from Gov spending at least in my opinion. Will be interesting to see the budget. I can only hope the gov does not spend away our future and our kids futures. Easy for me to say I guess given my job security. I just dread the idea of financing today with someone elses future.

Also of interest is that it would seem I live nearby CC.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179461 Canadian Capitalist Mon, 19 Jan 2009 21:20:56 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179461 @chum: I keep about 3 months expenses in a high-interest savings account. I chose the lower end because we can survive indefinitely on one income. But if I was bringing in the only paycheck in the family and my job isn't secure, I would seriously consider a much higher emergency savings even if cash is a terrible long term investment. Gold is too volatile to serve as a source of ready cash. @chum: I keep about 3 months expenses in a high-interest savings account. I chose the lower end because we can survive indefinitely on one income. But if I was bringing in the only paycheck in the family and my job isn’t secure, I would seriously consider a much higher emergency savings even if cash is a terrible long term investment. Gold is too volatile to serve as a source of ready cash.

]]> By: brad http://www.canadiancapitalist.com/preparing-for-tough-times/#comment-179458 brad Mon, 19 Jan 2009 20:53:44 +0000 http://www.canadiancapitalist.com/?p=1651#comment-179458 @Chum: high-interest savings is my choice. You want to be able to access that cash fast, without penalty. That pretty well rules out most of the other options. The tax-free savings account is ideal, but the $5K limit means it's going to take a few years to create a sizeable emergency fund. @Chum: high-interest savings is my choice. You want to be able to access that cash fast, without penalty. That pretty well rules out most of the other options. The tax-free savings account is ideal, but the $5K limit means it’s going to take a few years to create a sizeable emergency fund.

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