Tag Archives: Personal Finance

I’m being laid off: Preparing for the Worst

As I mentioned in my previous post…I’m being laid off…yes, I will be officially unemployed exactly 38 days from now….the count-down is on.  Am I little apprehensive?  Yes and No…it depends on how you look at it.   

I’m hopeful that I will find a job so that I can bank my severance and other bonuses, but if I don’t have a job lined up by June 15th, then I will need to prepare for the worst case scenario…i.e. come up with a plan to weather the storm until I find a job.

I cannot stress enough how important it is to plan for things seen and unforeseen.  Change is inevitable whether it be good or bad.  I didn’t really see this lay off coming but, I’m glad that I started an emergency fund years ago just for these types of situations.  That is one of the reasons why I haven’t panicked and I don’t have to take the first job offered to me if I don’t want it…having an emergency fund in place gives me leverage….and that can be powerful. 

With that being said….there are several things that I will be doing while I’m laid off so that I won’t get bored or feel like I am being unproductive.  First I will do some much needed spring cleaning and I still plan to sit for my CFP (Certified Financial Planner) exam in November so the majority of my time will be focused on studying for that.  However, it would be nice to do some volunteer work as well as visit some friends who live out of state. 

Even though I have some activities lined up in case I don’t find a job, the main objective is that I’ll need to rearrange my budget so that I won’t have to dip into my savings to live. 

Continue reading I’m being laid off: Preparing for the Worst

My Journey to becoming a Certified Financial Planner (CFP)

I hope that you’ve enjoyed reading my blog posts just as much as I’ve enjoyed writing them.  I’m still considered a newbie to PF (Personal Finance) blogging and let me tell you…it’s no walk in the park.  Why?  Because I care about the quality of content that I post on this blog.  I want my posts to be insightful and informative yet entertaining and colorful. (I’m still working on the colorful and entertaining part). 🙂

Anyway, I know that you don’t really know a lot about me, so I’m taking this opportunity to open up a little and tell you about a goal that I’ve been working on for quite some time. If you’ve read my About Me post, then you do know that I’m a lover of everything personal finance.  This all began some years back when I first started listening to Dave Ramsey and Clark Howard.  Even though their philosophies were different, their passion for personal finance and helping people were the same.  Their impact was so great that it ultimately inspired me to take the leap and start the long journey to becoming a CFP (Certified Financial Planner).

Continue reading My Journey to becoming a Certified Financial Planner (CFP)

Borrowing from your 401(k): Advantages and Disadvantages

With today’s companies getting rid of pensions 401(k)s have become one of the primary ways, for most individuals, to save for retirement.

Most 401(k)s are pretty flexible in that in they allow you to borrow against them.  But before you run off and cash out your nest egg, there are some advantages and disadvantages that you should be aware of:


  • You can borrow up to $50,000 or ½ of your plan balance.
  • The loan payment is usually automatically withdrawn from your paycheck, which makes it very easy to pay back.
  •  No credit check is required since you’re actually borrowing from yourself.  This works out well if you have poor credit.
  • You’ll pay a pretty competitive rate on the loan but the good thing is that you will be paying this back to yourself.
  • Little to no administration fees involved.


  • You’re borrowing from future money reserved for retirement which makes it harder for your money to grow.  The longer your money is outstanding from your 401(k) plan the longer you forgo all potential investment gains from all borrowed funds for the duration of your 401(k) loan.
  • If for some reason you are not able to repay the loan back, such as the loss of a job, then you will trigger a tax bill (federal/state taxes) as well as pay an additional 10% penalty for early distribution.

You should be cautious when borrowing from your 401(k) as it defeats the purpose of saving for retirement.  Only borrow from your plan if it is an emergency and you’ve exhausted all other avenues.