hey guys it's Joseph and Tasha from one big happy in this video we're going to
talk about what we would do if one of us lost our jobs because as you might know
we have a million dollars in debt
alright guys welcome back to one big happy what Joseph said in the intro in
this video we are going to be talking about what we would do if one of us ever
lost our job yeah one of the questions that we get probably I don't think that
probably the most asked question is or comment is that you know we're only
moments away from financial disaster because if one of us lost our job we
wouldn't be able to survive and that's actually not the case so we're going to
show you exactly how we would survive if one of us lost our job that's right so
it might look like we have tons and tons of debt tons of expenses and so that's
partially true but the way that we've structured our finances we can
accommodate one of us losing a job major from major financial shocks we can do it
because of the way that we structured basically how we live our lives yeah and
so we're about to get into the numbers for just a sec but I do want to point
out that this is just hypothetical because Joseph and I actually have
extremely stable jobs I mean very very stable it is highly unlikely that either
one of us will lose our job it's more likely that one of us might become
disabled or die than one of us actually getting terminated so that that's also
true and if either of those other things happen death or disability we also have
plans for that so we'll do videos on those two other
scenarios later but okay let's look at
the numbers to see Not death. I can't handle death.
so look at the numbers right now to see what exactly it would look like if
one of us lost our job so here is what our budget numbers basically look like
our combined take-home pay is ten thousand three hundred dollars we pay
about thirty seven hundred dollars for household expenses including things like
our mortgage and our electricity etc then for our car and car payment and
insurance that's about six hundred dollars
we are minimum payments on our credit which includes credit cards loans
student loans that is eight hundred dollars a month we pay sixteen hundred
dollars a month for child care and then the other lifestyle related expenses
include things like our groceries our gym membership and Netflix and our fun
monies so grand total our living expenses per month that's eight thousand
three hundred dollars so when you subtract that from our take-home pay
we're left out we have two thousand dollars left over every month okay so
before we get into the actual numbers of what that would look like if Joseph lost
his job what what's the first thing that you would do if you actually if you lost
your job what would you do so I'd tell you and I'd cry yeah it would
be a tough conversation but we're also going to assume that I don't get fired
that I got laid off so first thing I would do is file for unemployment
because there's always a waiting period for that and you don't know how long
it's going to take for you to get another job and so you want that to
start tolling as soon as possible secondly I would contact my student loan
servicer because now that my income has changed my payment would drop to zero
because I don't have any income anymore until it comes back third thing we'd
have to look at our health insurance for me because
we're not married I have my own policy and so there be a few different options
there sometimes you can continue coverage with your previous employer
sometimes that's really expensive also I could check out Obamacare see what's
available in the marketplace the third option that's just off the top of
my head we could then get married and and then I'd be able to be on Tasha's
insurance which wouldn't cost us any extra because I already have family
coverage because I cover the children under my health insurance so it would
just be adding another person it wouldn't cost us anything
and then I guess the next thing we go ahead and check out our budget again to
just see what decisions were going to make because they're always a little bits
that we could we could change around and then of course start job hunting yes
okay so now let's look at the numbers so when
we subtract Joseph's income from the previous ten thousand three hundred
dollar number we're left with five thousand six hundred dollars that
includes my take-home pay and some miscellaneous side hustle money like
from YouTube and other things that we do on the side that makes us a little bit
of extra money which that will continue even if Joseph lost his job so that's
fifty six hundred dollars a month so like Joseph mentioned he would file for
unemployment insurance right away and so based on the rates where we live he
would get four hundred dollars a week so that can we can add sixteen hundred
dollars back to our budget for the first twenty six weeks or so now let's take a
look at our expenses and what we would do there so right off the top student
loans gone - that's five hundred fifty out of the way daycare would also be
gone because I'm staying home our household expenses would stay exactly
the same I mean we could try to use less water try to use less electricity but
we're really splitting hairs all of our light bulbs are LEDs we keep the house
warm in the summer and pretty cold in the winter so it's basically $3,700
we're not going to be able to change that much
our car payment and insurance would stay the same at $600 because we're not gonna
sell a car right off the bat I mean we might consider it later but right away
probably not we would adjust our lifestyle budget which is currently
$1100 by first cutting our fun monies which is $200 a month we would also cut
the gym which is about a hundred dollars a month and then we go with a very
strict grocery budget for us which would be $600 a month and we think of that I
can get away with that because I'll be super couponing at home with all this
extra time that I'll have now we have done $600 budgets in the past and
actually if you check out our family one of our family meal prep videos that was
on $100 or I think it was even 150 dollars at $600 a month and we
weren't super couponing we weren't doing a whole bunch of like deal shopping it
was just going to Costco and being very strict about what we were buying
and the quantities and making sure that we ate everything yeah but that's true
we have done tighter budgets than that for a while we were on a hundred dollars it
was just this challenge that I had for myself we didn't for no other purpose
than for fun to see what what I can eat the budget at and then also keep the
food interesting and and so we can get it lower yeah so $600 is still you know
pretty comfortable for us it's not like they're bones so when you add all that
together you will see that our total household expenses would be about fifty
two hundred dollars a month now as I said before I will be made I would bring
home fifty six hundred dollars a month which means we have an extra $400 a
month left over before we even took into consideration Joseph's unemployment that
he's going to be getting which is about sixteen hundred a month so as you can
see we can very easily lose an income and still be perfectly fine and
perfectly able to meet all of our financial obligations so the other thing
to keep in mind is we have four hundred dollars left over we don't have to
consider unemployment insurance and we are still saving eighteen hundred
dollars a month towards retirement on this budget plus my
employer matching that brings about over like twenty five hundred or something
like that so that's an extra eighteen hundred dollars a month that we could
you know have to play with afterwards I mean if we needed it
now we of course with means still not working we wouldn't spend all that extra
money we'd be very conservative until I have that job lined up start date me
going to work because just in case things go longer unemployed benefits
only go so far twenty six weeks and then there are
other things that could pop up and so we wouldn't want to lose our buffer the
other thing to keep in mind is that we have savings for emergencies and so even
if there were some unexpected expenses of course we're not expecting a job loss we
might have planned to pay something larger that month well we have some
savings we pay that off unemployment benefits would start we shrink our budget
and then we keep going yeah so as you can see as video demonstrate although we
yes we do have a lot of debt it's not just about the total numbers but like
the the loan totals but about what those monthly payments are and how much
flexibility you have within your budget and especially when it comes to student
loan payments when you're talking to federal student loans that those are the
most flexible type kinds of debt to have for if you end up having some kind of
you know financial instability emergency because your student loan payments will
go to zero immediately or if one of us became permanently disabled the student
loans would just be forgiven forever to gone so that's it that is how we would
survive is one of us lost our jobs job so hopefully that clears that up for
everyone if you have any additional questions about any of this please let
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