I almost lost my job not long ago. Some people didn't understand each other. The misunderstanding was cleared up, and now I'm able to keep my job. I'm not here to talk about what's making people think that way. But I wanted to talk about what I would do if I lost my job for real.
When I found out I was going to lose my job, the first thing I thought about was how I would pay my bills, daily costs, house loan, insurance, etc. I had saved some money for emergencies, which was a good thing. I figured out that I don't need a job for at least 6 months. That kind of made me feel better. I also have some money in the stock market and a unit trust, in addition to the money in my savings account.
I also have money in the account for my house loan. For your information, my home loan account is a kind of loan payment account that gives me a lot of freedom. When I pay more than I have to, the extra money will be used to pay down the loan principal. This will bring down the interest on the loan. But if I need it, I can still take that extra money out whenever I want. I thought this was a great thing. I will add more money to the loan account every month. I hope to have the house paid off in less than 5 years. So far, I have a good amount of money in my bank account. It can be my back-up money for emergencies. At the same time, it helps me pay less interest on my mortgage.
Back to the main point, I really think we should have some extra money in case of an emergency. Most people can't even afford to live for one month if they lose their jobs. You might not think this is important, but just wait until someone hits you. Then you'll understand how hard it is. I would say we should have some emergency fund that allow us to live for at least 6 months if we lose our main income.
