It's almost been a year since I started practicing frugality and working towards my early retirement. This month marked the month that, since the first time since I was 17 years old, I am 100% debt and liability free. I am preparing to automate all my investing and savings and start focusing again on enjoying life (rather than pinching every penny to get out of debt emergencies and increase my savings percentage as high as possible). I'm at a happy and respectable 68% savings rate and next year, with some tax optimizations in 2014, that will be even higher with little effort.
But life threw a curve ball last week, as it always will: my SO was laid off unexpectedly! HOLY CRAP! What are we going to d--
Wait a second, there's no fire alarm here!
I realized after the initial wave of fear that, because of the life choices we made this last year, our emergency money will float all her expenses for 6 months. If I wanted to take on her bills, it would only knock my savings rate down to 54% and the emergency savings would last her twice as long. She is already job hunting, of course (first interview on Friday!), and not one to sit on her haunches. But if this had happened a year ago, she would need to have found a job within the month for us to make it by. Now she could easily float a year or indefinitely if I were willing to pick up all her expenses/spending (nope. :) ). The only thing that changed is how we view and use the money we have coming in. Neither of us have had raises this year.
I think that is amazing. I am only quarter of the way to the 100K net worth mark, but I already feel as though we are well insulated from life's little curve balls now - and it will only get better. Just wanted to share that revelation.
