Dear Dave,
We have been following your program for a long time. We have no debt, except for our home, and we have six months of expenses set aside in our emergency fund. Recently, I lost my job. I am luckier than others, because I got a severance package from my former employer, and my wife still has a good job. My parents always raised me to take care of myself and not rely on others. I think this is why I feel a little guilty about filing for unemployment compensation. Do you think there is something wrong with receiving unemployment benefits?
Brandt
Dear Brandt,
I really appreciate your self-sufficient attitude. I don't know what happened in your last job, but I feel that you are a hard worker and a decent man. I'm sorry you and your wife are going through this kind of situation. The Social Security system in this country is a statistical failure. But that doesn't mean I won't take my money at the right time. The government took it from me in the first place, so I have no problem accepting what I have already paid for.
Now, I'm going to issue a warning here. Sometimes when people start receiving unemployment benefits, it makes them want to take their foot off the gas. The idea that “free” money is coming can help them think about staying at home on the couch, instead of working hard to get another job and being overly careful with their finances. However, I don't hear that kind of logic from you. And it is clear that you and your wife have been very wise with your finances.
Another thing I would suggest is to make sure you look at your severance package as a survival allowance only. Make a strict budget and stick to it. Cut back on all excessive spending. That means no eating out, vacations or anything like that until you are back at work and everything is back on track. Right now, focus on covering your four walls. By that, I mean food, utilities, accommodation and transportation. Feed your family, keep the electricity on, pay the mortgage and put enough gas in the car to get where you need to go.
Everyone gets a rough road in life from time to time, Brandt. But you two are in a better position to handle it than most. Just remember what got you to such a good place with your finances in the first place. The muscle of discipline is already there, and it is strong. Just change it, and it will help you get through this and get back on your feet again!
— Dave
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