My Personal Reserves: The Why and the How

Losing one's job can be a critical blow - to confidence, finances and psychological health. Last year was perhaps the third (or fourth?) time in my life that I lost my job. Unlike those other times, however, this time felt remarkably different.

During those other times, I had a mortgage to pay. I had financial obligations that needed to be met. It may sound unbelievable considering what people know of me today, but there were times, especially when I was younger, when I suffered from anxiety about the future, and doubts about my own tech cred. Sure, it all seems silly now considering what I've managed to accomplish, but back then, this shit was brutal.

When I lost my job last year, all I felt was relief that I no longer had to work for the unprofessional wanker who was my last boss. I didn't feel any anxiety about having no income. And I certainly didn't feel like I just wasn't good enough to hold on to the job.

So what was different this time? Short answer: I had money.

I've stated before the importance of having a Fuck You Fund. Conventional wisdom states that the size of this Fuck You Fund needs to be at least six months to a year of monthly expenditure. When I checked my account, I had up to three years.

This was no accident.

Back in 2016, when my company closed down and I was in the unenviable position of having no income while needing to make mortgage payments, my bank account had a few thousand dollars left, tops. I was, metaphorically speaking, surrounded by a falling house of cards.

Everything crashing
down around me.

It was then when I made myself a promise. I must never allow myself to be in the same position again.

Realistically, of course, I couldn't prevent myself from ever losing my job again - no matter how good I am, that's not up to me. What I could do was ensure that I had money in the bank if or when I ever lost my job again.

The implementation

My life had already been simple before; now I started living like I was broke... and I actually was, or very close to it. When I got a job and started seeing income again, I continued living that way. For the next four years, no matter how much I was drawing each month, my meals were sandwiches made the night before. Eventually, I got lazy and graduated to buying a Footlong from Subway every morning, and cutting it into three portions. Sometimes, when I felt like indulging myself, I'd pay a little extra for coffee and a cookie.

Breakfast, lunch and
dinner for years.

Aside from food, my personal expenses were limited to cigarettes and the occasional movie ticket. I wasn't even doing it consciously by that point. It had simply become a habit. A habit which ensured that my bank balance continued to steadily grow.

Friends have advised me to "treat myself" more often instead of living like an impoverished old man. What they fail to realize is, their definition of a "treat" is very far removed from mine. To them, a seven-dollar coffee at Starbucks is a weekly, or even an everyday occurrence. To me, splurging seven bucks on dinner is a treat. I'm not miserable by any means - I just lack an appreciation for the finer things in life.

This thing about reserves...

To combat the COVID-19 crisis of 2020, the Singapore Government spent a total of SGD 52 billion to kickstart the economy, prop up failing businesses and financially bolster citizens in need of aid.

There's always been segments of our society that claim the Government is not spending money wisely or doing all they can to help the needy - and yes, sometimes I can see where that criticism stems from. Other times, it's just a lot of noise from children who really love the attention. The thing is, the Government saved up all that money for a rainy day. And with COVID-19, there was a downpour like never before. Instead of having to borrow heavily to finance a recovery plan, we used a hundred percent of our own money to do it.

A downpour like never before.

It was one of those times, as a Singaporean, that I couldn't have been prouder. Why, though? I wasn't directly responsible for our Government saving up all that sweet, sweet wealth. But it occurred to me, belatedly, after having lost my job, that I had done well to live my life by those very same principles - spend a lot less than you make, put money aside and don't indulge in petty but expensive pleasures. In short, be financially responsible.

Conclusion

There was no magic formula. No get-rich-quick plan. In gaming terms, what I did was the financial equivalent of Level Grinding. But fuck me, it worked.

At my current expenditure, I have more money than I know what to do with. And that includes whatever I give my parents, my wife and to various charities. As long as I don't do something sub-optimal like pick up a gambling addiction, buy a fancy car, provide loans, have kids or, y'know, frequently "treat myself", it looks to be that way for a long time.

I'm not wealthy by any stretch of the imagination. But at the same time, I'm not in the position of having to borrow money from others, nor do I have to suck it up and work for people that I don't want to work for. I work because I want to, because a life without work is too awful to contemplate. For a software developer of limited talent and modest means, that makes all the difference in the world.

Live cents-sibly,
T___T