Screw the Tech Bubble: What's your Plan B?
lessonsoffailure.com
lessonsoffailure.com
If you need a constant influx of 6K paychecks every month and you don't have a dime in saving to show for it--you're in trouble.
My wife and I run a small tech company--we have, at the very least, 6 months of income saved in the event we have to go without a paycheck or shit just falls apart. We pay cash for things like cars and vacations and we stay out of debt.
We're not worried about losing our jobs--we plan as if that's inevitable.
EDIT: Actually, the only thing I do worry about is healthcare. This country has its head up its ass as far as that goes. Group insurance is great (although we pay about $950/mo to insure 3 partners)--if you have to get individual coverage, good luck...
Even if someday I move on from consulting to a job opportunity, the financial wisdom I've been forced to acquire because of the ups and downs of consulting will pay me dividends for the rest of my life.
Actually, Solomon has some great stuff to say about money. Multiple streams of income, keeping track the "state of your herds," it's all in Proverbs and Ecclesiastes. The guy was the richest man to ever live, and it's not hard to see why.
I was lucky that I had an opportunity to start a cash flow positive company with 3 people so we could qualify for group coverage. Only problem is, I always have to be aware that that's my only option.