My wife was laid-off today. 3 lessons.

[Steve Vaughan]

After 14 years, my wife just got laid-off indefinitely along with probably 50% of her colleagues. Shes in the aerospace Industry and Boeing was their largest customer by far. 

I'm not predicting gloom and doom for all or anything like that, just sharing a little about how we're handling it and maybe a couple lessons about why, financially, it won't matter a ton to us.

Live below your means. We took this to a whole new level for years. Because we've never needed fancy things that provided no ROI, we've always had a good rainy day fund and little consumer debt.

Don't over-leverage.  We've been ok with not 'maximizing' every dollar of equity and allowing mortgages to pay off or even buy with cash from the beginning.  By the time we think about cash out refinancing, our opportunity fund has recharged from the higher cashflow.

Single customer risk.  The (un)employment axe came down very quickly, largely because over 80% (probably 90%) of her employer's revenue came from 1 client or business.  Be diversified with your assets, clients, revenue streams.  

We will certainly have an adjustment period and experience grief and loss.  My 9th grader was a baby when she started working there. We are excited for her to pursue things she's passionate about now more than anxious, but primarily because of our RE investments made over the years.  The hardest part right now for her is the effect this has on her co-workers that didn't do 1 or 2 above.

The music will stop one day.  A couple speakers just went out in our house.  Be vigilant out there to ensure you have a chair. 

[Kevin DeVargas]

@Steve Vaughan,

Thanks for sharing part of your journey and most importantly the lessons you've learned. I recently lost my job in January, long story.... I'm the sole provider for my family. Because I followed the fundamental/biblical rules, it was a hit a hit but not a devastating blow. 

1. I lived below my means and saved money in 401k and personal accounts. Cars are paid off and run great. Funny how some people mock me because I never buy top brands and purchased a nice home but noting luxurious. 

2. I had more than one source of income, my accounting business that I ran on the side. Now i'm going at it full time and placing it in God's hands.