Comment Re:It's the surprises that get you. (Score 1) 467
I've been unemployed three times in the last 15 years. Once during the dot-com bust (on and off for almost a year). Then in 2008 (6 days right before my first daughter was born) for almost 4 months, and then just recently (end of the year 2013) for three months.
I cannot imagine how bad it is to be unemployed longer than that, and I consider myself lucky that it was just a few months. But even if it is a few months, as you said, it is stuff like COBRA and other eventualities that get you.
On my last unemployment event, when I tally the amount of salary lost + expenses that I must pay no matter what (COBRA, children medical bills, food, housing), that pretty much tallied up to a $30K loss. My wife and I were very well prepared financially in terms of savings. But no matter what, $30K are $30K. It hurts.
Being out of work can pretty much amount to losing between $8K to $10K a month if we really analyze the situation. 12 months out of work is not unrealistic, regardless of talent, so I shiver to think at the very concept.
And the worst thing is that unemployment can (and will come) regardless of performance. In the job I lost at the end of 2013, it was just someone in accounting that cancelled projects at the closing of the year. Nothing to do with performance.
Shit happens, even in software, even if we have mad skills. Good thing that I learned my lesson during the dot-com bubble.
I've been living by a formula: expect to be unemployed one-to-two months for every year of continuous employment, and plan for it.
Now, I'm planning to bump it to two-to-three months per every year of continuous employment. The older we get the more that we have to bump that ratio, specially if we decide to remain technical as opposed to transition into management.