Have you heard? Consumer confidence is down. Foreclosures continue to rise. The whole de-leveraging process is a giant hangover from the debt-fueled excesses of a few years past.
To combat this doom and gloom, I’ve decided to play a little game for the month of November, and I invite all my readers to join in. The game is called: Emergencyopoly!
The rules of the games are simple:
1. For one month, live the lifestyle that you would live if you were to lose your income (for most of us, this would mean our job. For small business owners, it could mean months where you’re in the red and cannot afford to pay yourself.)
2. Approximate to your best abilities any additional expenses you expect to incur as a result of the income loss
- For example, I have great health care through work. If I lose my job, however, I’d have to spend an extra $50-$100 a month buying individual health insurance. This expense is expected and thus must be taken into account.
3. Concentrate on the core expenses (rent, food, utilities, car payment, etc.)
- If you spend $500 every year flying home to Thanksgiving, there’s no reason that you’d have to forgo that for Emergencyopoly (your family might not understand your dedication). Just focus on the core costs that you have to pay month in, month out.
4. Take the money that you don’t have to spend right now because you still have income and funnel it your emergency fund.
- In my case, I should be able to save an additional $225 (individual health insurance and job search expenses) to my Freedom Fund
So I’ve narrowed down my core expenses
Rent + Utilities/DSL: $810
Car Insurance: $105
Student Loan: $160
Gas / Parking: $155
Health Insurance: $125
Food: $125
Job Search-Related expenses: $100
Personal/Misc: $70
————————
Total: $1,650
Take out the health insurance and job search expenses, and I’m down to $1,425.
That’s my goal for Emergencyopoly: to come under budget for every, single, category for the month of November.
Looking at this scenario, I am slightly (but only slightly) comforted by the fact that if I really want to ensure that my cash lasts as long as possible, the quickest way to reduce my burn rate is to move back home. But I’m going to wait until push comes to shove (6 months without a job?) before I make that move.
I think this game will help me figure out how many months my savings can realistically take me.
So, who wants to play? 
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I ‘ll blame you personally for the further slowing of the economy in November.
I don’t think I’ll play though! Have fun!
Count me out! I simply don’t think I will manage.
BUT I will be watching your progress with interest;-)
If you lost your job, you should contact your student loan company and start the forebearance process. That would elminate that cost, at least for the short term. Also, your gas/parking/travel expenses would be extremely variable depending on how far and how often you had to travel for interviews.
I think it is important to look at your budget and know where you could cut back if required. And really, we should all be spending less, saving more, and living below our means. Always. The only people that benefit from anyone living on borrowed money are the banks and credit card companies.
I won’t be playing the game, either. My life is sad enough as it is.
That’s fun but unfortunately I’ve already cut out just about every single luxury expense and I still have an income. This game is my life! Good luck though!
DSL is a core expense? That’s one of the first things I’d get rid of. Public library for me.
And you can defer student loans if you have no job. So that would go too.
If I thought my outlook and prospects were dire…I’d ditch the car. Or at least keep it stored in the garage (sans insurance) until I got a job and just take the bus.
Worst case senario…move in with mom!
Cool article
I’ll definitly bookmark your site for future notice!
Looks like I’m already playing, I just didn’t know the name of the game! And my rules are a little bit different. I’ll post an update at the end of the month since I started playing early. Except for job hunting expenses, those will be spent as needed now.
I will be on vacation the last week of Nov. and out of town on business the week before that! So, my budget is going to be whack next month. I am going to make note of this and perhaps do it the first month of the new year!
I have a few things in November that I’d rather not forego, but I’m definitely going to bookmark this for January, when I don’t have any expenses planned. I’ll try to play along as much as possible in November, including banishing my nemesis: the impulse purchase.
I like the idea!
However, since I do not make a large salary to begin with… I cannot really “cut out” things. I already live very well within my means & save quite a bit. Good luck to you!!
PS How do you only spend $125/month on food? I spend that alone just on groceries! (I am also single and do not live near family – so maybe those are blessings you have?)
Just curious!
One word: Mom! Seven words: yes I know I’m one lucky girl!
I figured $125 will be plenty for groceries and 2 meals out per month, along with the supplemental goodies that Mom supply me with.
Though I admire the concept, I am not sure about why you feel the need to simulate long-term unemployment scenarios. You have a robust emergency fund, you live within your means, you seem to be very capable at your job, and you have a very supportive family — are those things not enough to give you a sense of comfort that even in the worst of times, you would still be okay?
Okay. I like this concept. I think I’ll try it too. I’m very interested to see how it goes.
Awesome game. It’s very interesting.
I have begun this month already with a couple expenses that I wouldn’t do if I lost all my income sources. However, I plan to play this in December.
I will let you know what happens.
BTW, Great Site. Keep up the good work.
Lolz.. I think I’m playing this game for real at least until mid-month since I’m living the lady of leisure life waiting for my new job to start next week.
I’d like to play it properly but maybe in the new year after Christmas though. Good luck!!
What a terrible idea! Rent, debt (student loan), and medical expenses equal 87 percent of my income. If I lost my income I would probably wind up under a bridge or in a homeless shelter, since I have no financial cushion.
Who comes up with ideas like this?
I think everyone should be doing this. The loss of a job or income isn’t going to happen “in the new year” or “at the beginning of the next month” or any time CONVENIENT to you, people! Prolonging the reality of whether you could deal with it isn’t going to help either.
Okay. I like this concept. I think I'll try it too. I'm very interested to see how it goes.