Just curious how are you prepared for a layoff? How many months of runway can your savings support in case of an adverse event?
I have pushed 12 months already and am curious how many are prepared for this sort of situation. If you have been able n a situation I would love to hear how you managed or what non essential expenses did you cut down, etc.
With my own savings I can last upto 8 months, but not much of an issue because my brother is working too and my father still have 3 more years until retirement. But still, the day I heard that I will be laid off starting the next day, I went completely blank for a good 15 minutes. It's not an easy situation for anyone.
First thing I cut down was my gym subscription. Instead, I started using community gym in our society and I also joined a table tennis club and badminton club. Playing one hour of each and then half an hour of weight lifting at gym.
Second, I stopped ordering food and started cooking on my own. If you don't know how to cook, just make a video call to mom and follow the instructions. I learnt a lot in the last month. Other than that, I cancelled my planned vacation to Goa, saving a potential 50k of expenses there.
I did some investments too, I spent around 8k on AlgoExpert, DesignGurus and restarted having coding challenges on codewars. Two and a half weeks of extensive interview prep and started giving interviews. Expecting an offer this week, so going good so far.
5-10yr++
Have been in precarious jobs, so FIRE helps me to buffer. Kept my fixed expenses as low as possible (~10-15% of salary). So without any discretionary expense, I save aggressively around 85% of my earnings. So everyday I work, I have earned for 5-6 more days of work free life.
For Runway, savings isn't the lever, expenses are. The less they are, the more your runway becomes. If your saving2expense split is 10-90, every 9days you work gives you 1 day runway. If it's 20-80, you just have to work 4 for a day worth of runway. This is assuming no compounding, investing gains.
Depends on what you call savings? If I liquidate stuff then yeah like 5 years easily
Only to avoid this scenario ever, i created alternative sources of income which cdn take care of my expenses without any hiccups
can you share more on alternative source?
Depends on your area of expertise and interest. My area allowed me to explore paid consulting opportunities and regular retainership. While at times it gets hard to manage both, I still won't stop as it gives me the confidence that my life is no longer dependent on any job.
Everyone on Grapevine earning 50+ lpa and then saying they have less than 3 months of runway without owing a house and staying in a shared apartment is the biggest effing irony
I’m actually curious now to find out how many people make >50L and stay in shared apartments. Next poll ✌🏼
