Budgeting for Layoffs?

The Waxed Yak asks: "After reading the Slashdot tech worker unionization story, I started wondering: What are other IT workers doing to prepare for potential layoffs?"

"We're all at risk of it, be it from actual layoffs or loss of employment for other reasons. My personal approach has been to live off about 1/3rd of my earnings and bank the rest, even though that means living in a hovel and driving an older car. Worst case scenario, I get to retire early.

I recently became completely self employed, which has made it all the more important to save. I understand many Slashdot readers have families to support, so they don't have the same option for savings that I currently enjoy. As I hope to have a family to support in the near future, I would be interested in tips or techniques to prepare for this situation. Judging by the posts in the unionization thread, many of you are dependent on a steady income to provide for their families. Hopefully this thread can provide some ideas for them as well."

Me personally

[mikesd81]

Right now I'm a machine operator @ Sealy components. It's a mechanical job. Yes I'm a geek, but I like mechanics too. There's 2 things a people will always have (relative speaking, let's not nit pick here): an automobile and computer.

Also, no matter how automated a plant may get, there still needs to be a person to fix the machine when it breaks.

Okay so my point is to always have a back up plan to fall on. You have more interests, I'm sure, than just computers. Capitalize on them. Wheather it be mechanics or landscaping or whate have you.

In the last James Bond movie to feature Q: "Never let them see you bleed, and always have an escape plan."

we IT workers are the most advantageous

[unity100]

when it comes to layoffs.

Especially programmers, designers, web developers, or any information technology service or counseling / technical support, anything that can be performed remote :

We have the internet.

When you get laid off, even in the u.s., you have the chance to put your resume & experience in a post titled 'experienced ..... looking for work/taking on projects' and shortly you get many inquiries.

Sure wages are not that high, comparable to when you work full time on-site.

But then again, a hourly $15 should be enough thinking you are working from home ? or from a remote site on vacation - hell, practically anywhere in the world.

Our professions are the most suitable for the internet - no surprise, as we are the ones that built it.

That might not seem enough, a mere $15, however there is no limit as to how many projects you can take on or at the same time how many hourly paid jobs you can manage - handle 3 simultaneous work, get $45 in total - no contractor will object to you as long as you handle their work fittingly. That is something you cant do while working on-site : work on someone elses stuff for an hour, get busted, youre in trouble.

I understand that many have families and people to support, and quite a many have become accustomed to rather high living standards.

So what ? if we lower our standards a bit in such times, we can work anywhere, anytime.

And note that, not having a profession that is required to be registered, unionized, guildized etc nowhere in the world, makes us capable of working ANYWHERE.

Too high taxes in u.s. ? Move to some other country where you are allowed to live in, just start working there. Its that simple.

On top of that, many countries will be pleased to have more it workers.

Unionization, regulation and etc are not to our advantage, but to our disadvantage. Keep in mind that organisations always fail to represent the masses they set out to represent - because only the rich, powerful & influential enough can spare enough resources to get on the helm of any of them. Then the result leads to manipulation and molding of the related masses to some other power's interest, and that generally becomes the industry bosses.

So far so good, were not mine workers, we can easily find ways to sustain ourselves, heck, even prosper (we are always free to use our skills to set up our own job, and we can do it with minimum capital) whenever we get laid off.

Maybe we are not that safe always, but, for the first time in the world history maybe, we have more freedom than any profession member had on the face of the world.

Me personally-Maytag.

[Anonymous Coward]

"Also, no matter how automated a plant may get, there still needs to be a person to fix the machine when it breaks. "

You wouldn't happen to be the Maytag repairman? Seriously, two things to keep in mind. One as things become more reliable, less repairmen are needed As things become more reliable, the less they break, and the more time you spend twiddling your thumbs Heaven help you if machines start fixing themselves.

"Okay so my point is to always have a back up plan to fall on. You have more interests, I'm sure, than just computers. Capitalize on them. Wheather it be mechanics or landscaping or whate have you."

Life as a drifter sounds nice. Thumbing your way across depression-era America. Wanna buy an apple?

Re:we IT workers are the most advantageous

[cyber-vandal]

Unionization, regulation and etc are not to our advantage, but to our disadvantage.

A quick look at the history of the 20th century as compared to the the rest of human history would instantaneously prove you wrong. The 20th century saw the most regulation and unionisation in human history. It also saw the greatest period of social and technological growth the human race has ever seen.

Too high taxes in u.s. ? Move to some other country where you are allowed to live in, just start working there. Its that simple.

That may be possible for a multi-lingual 25 year old with no family or friends. How about the other 99% of the population? I've lived in 3 other countries apart from the UK and I'm telling you right now, it's not "simple" at all, and I didn't have a wife and children to relocate as well.

Re:"Be prepared."

[maxume]

You misunderstood that other post. She doesn't want to have to lower her standard of living because of a job loss and plans accordingly. That's not any different than what you are talking about.

Here is another perspective

[earthforce_1]

There was a time when I put tried to save every cent I could - pay down the mortgage, maximize my retirement savings, etc. So what happened? An expensive divorce from a rather greedy ex-wife and most of my savings were depleted. (I was within 2 years of being completely mortgage free at the time) Now I take a more fatalistic attitute - work hard, but live more for today and try to let tomorrow take care of itself, because I may not be around to see it. (I am a type 1 diabetic, which cuts my life expectancy by an average of 15 years anyway) If you die with a million dollars in the bank, you don't get to spend it in the afterlife.

Re:prioritize-future proofing

[tengwar]

I'm sorry, but I can't take this as a serious answer to the problem of being laid off, because your preparations cost too much and restrict your options and your mobility. You're taking savings (flexible) and converting them to single-purpose items that you probably won't use, and you're nailing your feet to the floor with non-portable assets

• Backup solar power? Mains power is cheap. Keep the money in the bank, spend it on mains if you have to.
• Food stores? Really bad idea if all you're worried about is being laid off. If you've kept the money as savings, you can buy the food when you need it. If you buy food now, it's a wasting asset (i.e. its value declines because some of it goes off).
• Pay off the house? No, keep a substantial chunk of the money on deposit where you can get at it for emergencies, and only after that pay off more than you have to on the house. You may get a lower interest on deposit than you're paying on the mortgage, but if you're looking for work, you are likely to need cash.

This sort of advice is only useful if you think that the whole of civilisation is going to collapse. As a preparation for personal financial problems, it's foolish.