I am planning to get a part time job now and bank all the extra income as my DIY severance package. My thinking is that if I wind up on EI I won’t be able to have a part time job at that point or I’ll just cut into my payments. I’ve only ever collected maternity leave benefits which is a special case so I’m not really sure now the whole EI thing works. If I find a new job before I’m laid off none of this will matter, but in case I don’t I figure I should double up my hours and build up a little extra now while I can. Does this line of thinking sound reasonable? Does anyone know if you can earn any PT income without impacting your EI payments? I’ll qualify for the maximum EI payment based on salary, but is there some amount I can earn in addition without screwing that up. I hope to move seamlessly from my current job to a new one, but I just want to have all the information ahead of time.

I have been where you were…best of luck in coninuing to be well and work. the psychological cost to a couple of a long term illness is huge, so I think if you can afford the concert you really must celebrate!

Hugs!

LOL

Jesse, I do not think using your emergency fund to pay down debt is a good idea. If something were to come up, having no stash of cash would push you right back to your credit.

I know a lot of you are on the minimalist path, but please don’t think that what I preach is minimalism… my house if full of stuff, stuff I enjoy looking at, stuff I enjoy sharing with friends: plants, books, movies, nice dishes (including that white china.) My message is simple: you can have whatever you want provided you are paying for it with money you’ve already earned, you’re not carrying any consumer debt, you’re saving something, and you have all your risks covered. It’s a case of taking care of the details first. You aren’t entitled to stuff you must pay for with credit! That’s just dumb. And no matter what mistakes you may have made in the past, it is now time to pay up and move on to a life that is rich with joy and experience.

Planning like a pessimist so you can live like an optimist means that once the details are all in the bag, you can go about doing whatever the hell you want with you money. It’s your money. You earned it. Have a great time!

If the choice comes between working an extra 20 hours a week, or paying some more interest on your debts, which is the better choice? I know, I know, you preach “get out of debt” like there’s no other answer, but what if your interest rate isn’t that low. Wouldn’t it be worth the extra few dollars to live a somewhat normal life?

Obviously this can only be the case IF you’ve stopped charging credit, getting into debt, and have a debt repayment plan.

Like, if you work the math, and it turns out that your extra job will save you like, $400 in interest over the next two months, isn’t it worth the extra 20 hours a week at home with your family for $400?

Thank you for putting it so sensibly and thoroughly and giving us the little kick in the pants!

I actually find that most people on Gail’s blog are pretty down to earth and not all that materialistic. If you were referring to Erran’s comment, well, I don’t think there is anything wrong with working hard when you are young (Erran, I think you are around 30 years old?) to save for what you will want for the future (dp on a home, etc.) For that matter, there is nothing wrong with working hard for other monetary goals. It’s a matter of personal choice.

I consider myself very frugal and easily satisfied. I don’t place a lot of value in “stuff”. That being said, there are still things I want to buy. Traveling, for example, is a particular passion. I think that most people here would agree that once you pay down your debt, money is yours to do what you want with, as long as you are saving the suggested amount and living below your means.

I don’t disagree that for some folks, having less stuff is worth the increased family time. But I would caution against making sweeping judgements on this crowd.

We looked at the amount of debt owing and figured out that we could pay it off in 3 years just on my income alone. This was before my raise and bonus. Now it looks like it will be paid off a lot sooner than the three years.

I like Gails advice to use 2 to 3 years as a timeline. If your debt is so high that you have to work 2 or 3 jobs to get it paid off in 3 years then go for it, but if you can do it without going insane and working 80 hrs a week the stay the course.

Having family time on the weekend, having time to invest in my marriage to me is worth taking a bit longer to pay off the debt. No time with hubby might equal debt free but it might also equal a divorce lawyer. I like my husband enough to go skip the laywer idea.

Now on that note if our situation was a lot worse than what it is then he would have had to have got a job, so I am grateful that it isn’t! My message is balance!