How long do you think it will take for the economy to turn around.

[celerydunk]

Im joining the ranks of the unemployed at the end of the year. Luckily, I have been preparing for this and will be okay for a while. I am actually thinking of taking some time off and even blogging about my ultra-frugal living as I learn to do it. My biggest worry is how long this economy will last. I can wait it out for a while, but when Im ready to go back to work will jobs be there.

How long do you think it will take for the economy to turn around? How many months of a bare-bones emergency fund would you need to have in the bank to feel comfortable?

[Denvergirlie]

I personally do not think it will ever go back to what we had a few years ago. Some of those industries hit will not recover, things like construction, real estate, etc. That being said, it's going to take years for the unemployment to return to a better level.

As for the emergency fund, we have 6 months in the bank. That would not inculde unemployment benefits or a severance package I would more than likely receive as well.

My unemployment benefits will more than cover our expenses, and actually would be able to save about half of my benefits, so 6 months of benefits would last a year for us, before then touching the 6 month emergency fund. Of course that would not allow for any unexpected issues like car repair or the like.

Will you get unemployment at the end of the year? Not that this would make much of a difference in my personal comfort level of having 6 months of bills in the bank.
Unemployment is not something we are activily counting on it, so the emergency fund is an necessity for me to sleep better at night.

All that, and personally I would rather have another 6 months above what I currently have in the bank to make it a full 12 months in the bank.

best of luck, at least you know you have some more time to prepare. Might want to consider stocking up on other consumables if you find them on sale at a good price now. Things like pantry staples, needed clothing, etc.

[celerydunk]

I will get unemployment, but the website is a bit confusing and I cant figure out how much and how long it will last. Im in Georgia if anyone knows.

I have made a two shopping lists: 'must haves' and 'nice tos'. That way I can watch for sales so I can stock up. My must haves are things like toilet paper, rice, pasta, essential things like that. My nice tos are things that arent necessities, but if I can get them at the right price I will buy (my preferred lotion).

Im also feeling like things are not going back to normal. Once of the things I want to explore next year are ways to make money without a traditional income. And things like urban gardening.

[Usually Curious]

Originally Posted by celerydunk

I will get unemployment, but the website is a bit confusing and I cant figure out how much and how long it will last. Im in Georgia if anyone knows.

I have made a two shopping lists: 'must haves' and 'nice tos'. That way I can watch for sales so I can stock up. My must haves are things like toilet paper, rice, pasta, essential things like that. My nice tos are things that arent necessities, but if I can get them at the right price I will buy (my preferred lotion).

Im also feeling like things are not going back to normal. Once of the things I want to explore next year are ways to make money without a traditional income. And things like urban gardening.

I never understand why people think toilet paper is a 'must have'. If you went to family cloth you would only have to worry about water for washing. It takes a lot of room to store a year's worth of toilet paper, too.

Using cloth dipes, cloth napkins and kitchen rags (instead paper towels) has really reduced my monthly outgo. I wish my dh would let me make the switch to family cloth.

[grniys]

Originally Posted by Usually Curious

I never understand why people think toilet paper is a 'must have'. If you went to family cloth you would only have to worry about water for washing. It takes a lot of room to store a year's worth of toilet paper, too.

Using cloth dipes, cloth napkins and kitchen rags (instead paper towels) has really reduced my monthly outgo. I wish my dh would let me make the switch to family cloth.

I think every person and every family has their own small list of "I will NOT live without" and that list varies family to family and person to person. Toilet Paper is on that list for me. I will go without cable, internet, phone, a second car... I will give up just about anything before I give up TP. I see it as an absolute essential.

To the OP, I'm not sure we'll ever get back to what we had before... but I'm saying it'll be a few years before we really, truly see a huge turn around. At least. And that's if we get a firm hand on our national spending. JMO.