Aerosurfer,aerosurfer wrote: ↑Sat Apr 28, 2018 7:09 pmKF
Some really interesting wealth strategies I hadn’t ever though of looking at that way.
According to rule #1 what do you lump into as savings for annual expenses? Any and All money saved; pre-tax, post tax, how about employer matching? Same goes calculating expenses, simply based on revolving budget, or would you factor in any infrequent or unplanned expenses?
I’m newer to these boards, so I only know about your history in this thread. Though it seems you have really taken a methodical way to making FI work sooner, but you also keep stressing about being out of work for extended times and having enough to live off of savings. Are you saying all those times you had Zero income coming in while you looked for another job? No matter how specialized your field it seems like not working is not an ideal choice vs. ‘some’ working. No freelance, no side jobs? All of that seems like a disservice to your family as the primary earner, as well as for planning to keep your other rules in check.
I’m an airline pilot, so my field is pretty specialized as well. If my airline went under I feel I could find another flying job soon, but if the industry tanks, I can’t imagine I would just wait out flying while I depleted my savings under any circumstances, even if I had reached my FI independence point. Which you seem to indicate you hadn’t yet reached at your various unemployment points.
Im Still trying to wrap my head around your point of view regarding specific college savings at any level. A lot has already been said for both sides of the argument, but I do like the perspective
<<Any and All money saved; pre-tax, post tax, how about employer matching? >>
It includes employer matching.
<<Same goes calculating expenses, simply based on revolving budget, or would you factor in any infrequent or unplanned expenses?>>
There is no budget. This is based on "Pay Yourself First" saving method. All the savings are deducted out of the paycheck automatically. Then, you spend the rest.
<< in any infrequent or unplanned expenses?>>
If you have the money to deal with it, you spend it. Or else, you use your emergency fund. Then, you reduce your expense over the next few months to refill the emergency fund.
<<I’m an airline pilot, so my field is pretty specialized as well. If my airline went under I feel I could find another flying job soon, but if the industry tanks, I can’t imagine I would just wait out flying >>
What do you do if there is no flying opportunity?
A) The reality is at my age and my specialty, there is only contract work at $60 per hour or higher for me. I try to get some contract at a lower price but I had zero offers. But, I had contract work at $60 and $100 per hour.
B) It is the same with the job offer. There are not many job opportunities out there for me. And, for the job that needs me, there are not many out there that can do the job. I have 30+ years of experience in my area. For jobs with a lower requirement, they would not hire me because they believe I would leave as soon as a suitable job shows up. I am overqualified.