Wow... this is a really great thread. Let me add my own thoughts to this one. I had a crushing layoff very early in my career. In a way I am glad of it, because I think it helped to form the way I feel about money, savings, etc.
I think the conventional wisdom of 3-6months especially in this economy is way too small. I would think closer to 9-12 months. And as some other people said, have an extra few grand socked away for that inevitable unexpected lightning bolt that may find you. A major medical expense or car problem can happen at any time, and certainly cannot be put off until financial times are better.
I think the most important thing about planning for life's eventualities like loosing your job in a bad economy, is not to develop a "but that will NEVER happen" attitude. I have personally seen way too many friends bring themselves to the brink of financial ruin because of it. Their attitude was...,"why buy insurance... I am healthy now.... why do preventative maintenance on my car it runs just fine .. etc."
I guess the only other thing that I might suggest is remembering never to under-estimate the power of a favor in business. Every now and again... go that extra mile and exceed someones expectation. People will remember that... and something as simple as that can make the difference. I left my previous job around 3 years ago. Due to the tech nature of it... to this day on occasion I will get a phone call from people working there, asking me questions about the systems that I worked on.
My original intention was to ask to be compensated (like a tech support call) when they needed help. But ultimately, I decided that in this work climate, being owed a favor is far more valuble than cash. So the deal I made was I would help them out whenever needed, even spend an hour or so on weekends if the need was great enough. And I would do it all for free. But in return, the people I am helping would start sending around e-mails letting the managers there know what I have been doing for them.
The hope is that should the job I have now go south... I might be able to return to the previous job. That is the thought anyway... I hope I never have to test it ...
I think the conventional wisdom of 3-6months especially in this economy is way too small. I would think closer to 9-12 months. And as some other people said, have an extra few grand socked away for that inevitable unexpected lightning bolt that may find you. A major medical expense or car problem can happen at any time, and certainly cannot be put off until financial times are better.
I think the most important thing about planning for life's eventualities like loosing your job in a bad economy, is not to develop a "but that will NEVER happen" attitude. I have personally seen way too many friends bring themselves to the brink of financial ruin because of it. Their attitude was...,"why buy insurance... I am healthy now.... why do preventative maintenance on my car it runs just fine .. etc."
I guess the only other thing that I might suggest is remembering never to under-estimate the power of a favor in business. Every now and again... go that extra mile and exceed someones expectation. People will remember that... and something as simple as that can make the difference. I left my previous job around 3 years ago. Due to the tech nature of it... to this day on occasion I will get a phone call from people working there, asking me questions about the systems that I worked on.
My original intention was to ask to be compensated (like a tech support call) when they needed help. But ultimately, I decided that in this work climate, being owed a favor is far more valuble than cash. So the deal I made was I would help them out whenever needed, even spend an hour or so on weekends if the need was great enough. And I would do it all for free. But in return, the people I am helping would start sending around e-mails letting the managers there know what I have been doing for them.
The hope is that should the job I have now go south... I might be able to return to the previous job. That is the thought anyway... I hope I never have to test it ...