Quote:
Originally Posted by drjones96
Then again you'd never buy a single house or even move out of your parent's house if you had to assume in your finacial decisions that tomorrow you could be unemployed. All you can do is base your financial decisions around what you are doing today....and for the future you may be able to assume a 2%/yr income adjustment.
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Of course not every eventuality is known. But you can build in a safety net for eventualities. That is what life insurance is for. That is what a minumum of 6 months living expenses in the bank is for. That is what paying into a 401k and IRA's are for. That is why the wisest people I know buy modest homes with fixed mortgages that are affordable (at a stretch) on ONE income, so that if one partner leaves, dies, loses a job or becomes disabled, the family does not lose their home. That is called GOOD MONEY MANAGEMENT and fiscal responsibility.
It is not rocket science. It just means watching where the money goes, budgeting and not buying whatever they want the moment they want it. Skills which sadly appear to be in shortage these days.