[QUOTE=TokyoPlayer]
I read this tread yesterday, and since then I’ve been thinking how I could find myself in that position. In my current life, I can’t see what type of perfect storm it would take to knock us down to the bottom. That’s probably a good thing, with since my wife is 18 weeks along.
I grew up in a lower middle class family of seven, on one income and tight expenses, and remember my parents fighting over money. Somehow I must have decided never to be there since I’ve always saved money.
In addition to our savings and investments, we’ve got a good network of friends and family who could help out in the short term. Japan has national health insurance, so we wouldn’t face a crisis there.
Short of a world-side depression, the only thing would could wipe us out would be if we were to start a business and it went under. If we were to start a business, then it’s a good idea to build in a small safety net or a Plan B if everything moves south.
Unfortunately, I think too many people live unnecessarily too close to the edge. In a recent thread, a person wrote about inheriting a small amount of money and debating dedicating it to pay off part of his credit card debts or to just spend it. I was surprised by people who said to spend it on something you like.
While developing survival skills for homeless is good, it may be – perhaps – better to work on getting into a situation where a sudden job loss won’t put you on the streets.
[/QUOTE]
My life matches yours well enough, family of 6, one income and lower middle-class. I always scrimped and save. Now that I have a good income and a nice home, I still bargain shop, I still look for discounts and we are putting a lot away for retirement and have no debt except our house. Cars are paid and credit cards never carry a balance.
I wrote all this to preface what I will say next.
Your final sentence is unrealistic and I think it will be seen as insulting to many. There are a lot of people that for a variety of reason live near the edge. It is not because the pissed their money away on a $45,000 car or bought a house for more than they could afford or spend like crazy.
My parents were never more than the long time loss of my Dad’s job away from disaster. They could not put money away and they were extremely frugal. If my father’s health had failed when we were young, we would not have been able to make it as a family.
In fact that happen to my Aunt and her four kids. My uncle died when they were between ages 2 and 10. It took her a long time to get through school and land a decent job. Along the way she lost her eldest son to the despair of poverty and the streets of NYC. One of my cousins tracked him down about 15 years ago. He was a strung out junkie with a junkie wife and two screwed up welfare babies. He wanted nothing to do with the family and that was the last anyone saw of him.
It is not always possible to work on getting into a situation where a sudden job loss won’t put you on the streets.
Jim