Comments on: Practicing for a dramatic drop in income

By: Corporate Barbarian

Corporate Barbarian — Tue, 14 Apr 2009 20:42:06 +0000

I think it’s a great thing to strive for, even if you can’t implement it right away. My wife said that Suze Orman suggested that couples try to live on one salary as a prelude to one of them getting laid off.

By: Becky

Becky — Sun, 12 Apr 2009 05:18:11 +0000

I think it’s a great idea.

People who are trying to save the whole income of one partner for a downpayment for a house, for instance, basically do this.

By: Revanche

Revanche — Sat, 11 Apr 2009 21:48:29 +0000

Actually, I started doing this last fall when I had an inkling that our jobs were in danger. I projected possible savings and income post-layoff, and worked on cutting all expenses down to a minimum so stretch the post-layoff dollars further.

It’s been beneficial to keep expenses down because it’s an adjustment best made gradually, not suddenly when the income is lost, and it’s been great to have that extra money go to savings in the interim. It gives me a good luck at what works and what doesn’t before the noose is tightened, so to speak.

By: ConsciouslyFrugal

ConsciouslyFrugal — Fri, 10 Apr 2009 20:41:08 +0000

I think it’s an excellent suggestion. A friend of mine started doing this about a year into her marriage. They are saving 100% of her salary and living off of her husband’s income only in uber expensive Los Angeles. They want to have children at some point and know that she will have to stop working for a bit, so they want to be prepared. But I have been so impressed with their commitment. They are trying to buy a condo–on his salary alone. She told me that growing up with a special needs sibling taught her that anything can happen at anytime, so she wants to do all she can to be prepared and secure financially. It’s brilliant.

By: bluntmoney

bluntmoney — Fri, 10 Apr 2009 18:53:53 +0000

Hm, I think it’s really practical for people who are thinking about quitting their jobs to SAH or to work for themselves. If you’re planning to go without the income, wouldn’t it make sense to be sure you can actually do so first?

By: Craig

Craig — Fri, 10 Apr 2009 18:50:48 +0000

I have never heard of that suggestion before either, I understand its usage, but doesn’t seem practical. Basically its a way to save a lot more money in that time period, but going to extremes.

By: Ken

Ken — Fri, 10 Apr 2009 12:32:53 +0000

This is a quite scary suggestion. However, I see the benefit to your thinking. In today’s crazy job market it would help someone to know what is a want vs a need. It’s wiser to do this now than after the fact I guess. Having a cushion could only benefit someone.