Over Supplied

Since just over a year ago when I was let go from my old company I have been in a serious funk about a lot of things, but nothing bites as badly my first home purchase being just a few weeks before they decided my services were no longer of use. My bitterness runs deep and hard and many days I find it quite suffocating. I was in total shock for Nov and Dec of 2006 as I tried to understand what had just happened. I had quite a bit of cash in the bank so it wasnt an immediate panic. I had joked with my mortgage friend the whole time we were going through the process that I could always just go work for him if I lost my gig and suddenly there I was.

My first mistake was not going straight to work. I waited till January to give it a ‘fresh start’. So for Nov I tried putting a company together with the other guys that were let go at the same time as me. This failed to launch and I spent Dec reflecting on turning 30 and wondering if I was going to be able to keep my house. This was very unhelpful.

My second mistake was not sticking with the Mortgage position in Jan and thinking that the grass is always greener went to work at another tech startup. The salespitch I got in the interview was phenomenal and I took the bait. Nine months later I walked back to the Mortgage position and am doing well. The problem now is that everything seems to be coming down around me.

Everyday we see more stories about the failing economy and I cant help but get caught up in the paranoia that suddenly someone is going to throw a switch and everything is going to go dark. Of course this is an overgeneralization but things do seem really bad. Now the government is gonna throw us all $500 to get things going again. I dont know about you but $500 is not a lot of money when you have a mortgage that is 3 times that. I keep brainstorming about what people are gonna buy with that to get everything going again. It seems that this is a very shortsided way of fixing something that was caused by the shortsided belief in home prices being able to maintain their meteoric climb in the last 7 years.

So what am I gonna do to prepare for the Recession that is already happening? The first thing I have started is cooking my meals almost daily. This is hard so a shortcut is to make up a lot of meals on Sunday and then just reheat them at work. This saves me at least $6 a day which adds up to over $240 a month just for lunches. Dinners are usually closer to $10 each so make it a good $500 in monthly savings right there. The next concession will have to be going to the bar as this is easily one of the biggest drains on my pocket book. Thats a good $400 a month there. Just two concessions and I am on my way to saving $1000 a month. This is money that I will need to start putting into my Emergency fund to be ready in case something happens because as my exit from Godaddy taught me: nothing is for certain.