Re:How to survive and thrive in a down market
by scarface74 on Friday July 27, 2018 @09:59AM
(#17625978)
Because of both some dumb life choices earlier and some deliberate prioritizing of short term goals currently, my liquid savings that I could use to weather a long term job loss is nil and because of other priorities, I don’t realistically see myself having six months worth of living expenses in liquid savings for at least 5 years.
I was a developer during the first recession between 2000-2002, but most of our customers were utility companies so we weren’t really affected.
During the second downturn in 2008-2011, what I noticed is that the people in technology who were having a hard time finding a job were managers, and software developers who were not at the top of their game - weren’t focused on knowing the most in demand technologies. Companies had all of the power so they didn’t have to settle for people who had only 70% of the required skill.
My suggestion? Of course save, but also keep a strong network of people in the industry, keep relationships with local trusted recruiters, look at job boards and see what in demand skills are and focus on getting really good at those. If it means changing companies, do it.
The other issue because of our backwards health care system in the US where your health care is tied to your employer and the ACA is always under attack is health insurance. During the last downturn a lot of companies were only hiring contractors. While you think you can always using COBRA to keep insurance on your last job, if that company goes out of business, COBRA is no longer an object.
My wife and I optimized for that. She has a very secure government job with family benefits.
Side note: if you want to hedge your bets - save for a rainy day and save for retirement. If you’re in the US, a conservatively invested Roth IRA is ideal. There are no penalties for withdrawing the principal from a Roth IRA but if you don’t need it, you can let it grow tax free.
I was a developer during the first recession between 2000-2002, but most of our customers were utility companies so we weren’t really affected.
During the second downturn in 2008-2011, what I noticed is that the people in technology who were having a hard time finding a job were managers, and software developers who were not at the top of their game - weren’t focused on knowing the most in demand technologies. Companies had all of the power so they didn’t have to settle for people who had only 70% of the required skill.
My suggestion? Of course save, but also keep a strong network of people in the industry, keep relationships with local trusted recruiters, look at job boards and see what in demand skills are and focus on getting really good at those. If it means changing companies, do it.
The other issue because of our backwards health care system in the US where your health care is tied to your employer and the ACA is always under attack is health insurance. During the last downturn a lot of companies were only hiring contractors. While you think you can always using COBRA to keep insurance on your last job, if that company goes out of business, COBRA is no longer an object.
My wife and I optimized for that. She has a very secure government job with family benefits.
Side note: if you want to hedge your bets - save for a rainy day and save for retirement. If you’re in the US, a conservatively invested Roth IRA is ideal. There are no penalties for withdrawing the principal from a Roth IRA but if you don’t need it, you can let it grow tax free.