The maximum that they can do is to fire me — that’s OK!
Recently, I overheard a colleague say this and it’s really stuck in my mind since then. To me, that’s a sign of someone who’s financially well prepared. In fact, very well prepared. The day that you come into work and say this is the day that you truly are well prepared. Then, you don’t need your job to live.
Quick suggestions on how to get to that day.
- Have an Emergency Fund: I’m not particularly bothered about specifying an exact amount that you need to set aside in your emergency fund. You know what’s best for you (how quickly can you get another job, what your average monthly expenses are, how many financial dependents you have, etc.). Just plan for the worst case that you can think of. Then double that if you’re in debt.
- Have Independent Health Insurance: No job. No employer-provided health insurance. And it’s a disaster if your plan is to rely on your employment forever for health insurance. I’m a strong advocate for not having any financial link with your employer — and this happens to be one. Get rid of it.
- Strive for zero-debt: This one’s ideal but tough in today’s world. At the very least, you ought to get rid of your non-essential debt (personal loans, overdrafts, and credit cards). For the other essential debts, don’t forget to include your EMIs in your monthly expense estimates (a key input to what you’d need in your emergency fund — see how these tie-in?).
- Have Multiple Streams of Income: Again, this one’s ideal but certainly not tough in today’s world. And it won’t happen overnight. Just as it takes you sufficient time to get your salary to where you want it to be, building multiple streams of income will take its own time. But when you get there, you really will want to scream out “The maximum that they can do is to fire me — that’s OK!”
I screamed quite a while back.
How about you?
Many of us are very well prepared for this kind suitation as many have experienced the same starting from 2008 end downfall :)
The 1st 3 is something many of us will have. How about the last one?, I do understand its a luxury to have secondary source of income, but do you think its feasible?.. Apart from FD’s, RD’s & minor investments which might cover up monthly expenses, I don’t see secondary source of income matching our monthly pay check???.. So I don’t exactly know how someone can keep relying on secondary source of income for too long…
As they say, experience is the best teacher. :-)
Stay tuned for a detailed post on this topic. But, for starters, your secondary sources of income need not add up to your monthly pay-check. That’s asking for a lot! It’s good enough if they can match your monthly expenses.