Friday, January 6, 2017

To plan or not to plan? That is the question...

I have a good job which pays very well and I am happy about it in general. I had made some long term financial plans and was very happy how things were going. However....

My boss lately told me that a big company is interested in buying us out. Since he intends to relocate abroad, he is happy that such an opportunity presented itself.

Well, my plans need to change now. First of all, I have some debt burden taken over from a family member and that has to be paid out on a monthly basis. Second, I had been planning to save a ton of money over the course of 3-5 years. Third, I used to pay a lump sum amount to my personal retirement fund to take the advantage of 25% Government Match but, I do not want to be cash-short so, I decided to postpone that large payment which will eventually delay the Government Match.

Bummer! Should I forgo planning altogether and float the waves? If plans are not gonna work why bother planning?

Obviously, I decided to revise my plans instead of panicking. When I heard the news, I charted out a terrible scenario where I would keep my current job for the first three months of this year and would not be able to find a new job and just exist on my retirement and rental income.

I ran the numbers and saw that, I can still meet my obligations even in that terrible scenario with very small savings to be left over. This made me feel a bit better about the situation because, this is the most unlikely scenario.

My boss thinks the deal will take at least 2 quarters and that the buyer will need me badly. Let's hope so, but, I will not count on that.

Now, I have switched to a super saver mode. Other than items of absolute necessity, and some simple entertainment, I will not be spending money.

2 comments:

  1. My mode is super save also as I see how things go in my company which was bought out 2 years ago. My year ended with a move across town and then a bad cold so have not been up to too much - thank heaven Kwik Trip sells Chicken Noodle Soup

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