Posted by Dave on March 4, 2014
About a month ago, my workplace laid off around 15% of the employees in my 400 person company, with no warning to the staff of the company (as is usual in these type of circumstances). I was not affected by this move, but it created quite a lot of anxiety internally with my company, as there were very few departments which weren’t impacted by the corporate “shuffle”.
Due to our fairly low monthly spending amounts, compared to the amount of money we bring in, my wife and I are able to cover all “fixed” expenses through either one of our salaries. We set up our budget like this purposefully, as in the past, my wife has had a couple of terrible jobs. I would rather she (or I) have the flexibility and freedom to leave this kind of situation, instead of feeling stuck due to our lifestyle requirements.
Stressing over money (or anything really) isn’t healthy. I recently read a book called “The Cholesterol Myth” – in it, the author described two kinds of stress. The first kind of stress is the kind you’d get being chased by a lion – once you lose the predator, the stress is removed from your life and you go back to “normal”. The second kind of stress is the dull, persistent stress experienced through work and personal relationships – the kind of thing that doesn’t have an easy fix and stubbornly nags at the back of your mind. It’s the second kind of stress that leads to health problems and is one of the main drivers of heart disease today (besides terrible diets being consumed by most people).
My wife and I would rather not have to worry about money. We think it’s healthier for our relationship and allows us to enjoy our daily lives much more. There are some things we do that would seem ridiculous to others – like having a bunch of money sitting in a high interest savings account rather than being invested, but these are done to reduce the impact of major life occurrences to our normal spending “curve”.
We are also responsible only for ourselves – we don’t have children, or even any pets that are dependent on our ability to create wealth in order to eat every day. This type of arrangement also offers some additional flexibility in our financial decisions – we can act more selfish in our spending and saving.
I am by nature a bit of a worry-wart when it comes to money, perhaps borderline paranoid when it comes to the possibility of extended unemployment. The benefit of our goal of Early Retirement, is that even if we only get part way to the goal by the time we reach age 45 (our hopeful date of financial independence) – we will hopefully continue to live a financially stress-free life.
Do you stress about money? Have you in the past?