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I had just left a mobile healthcare company (Palm VII's and Palm V's with a giant data sled!!!) I had founded in college with some friends that was doomed for failure.

I had just graduated and started at a small mobile company (hockey-stick growth!) that was trying to convince distributors that putting cell phones in Coke machines to call home was a good idea. I was told the company was planning to double in size that year. I was the last guy they hired.

About 4 months later I got laid off when the company went from 60 employees down to about 10 in one afternoon. I felt horrible. I then went through a get-hired/layoff cycle despite giving 110% effort at each new job. Oddly enough, each new position paid better and I sharpened my skills. I learned the art of the interview, and I learned that sometimes getting laid off has nothing to do with you.

Being rejected and forced to claw my way into the field with little experience was good for me, but for a while I overvalued job security.

I learned this: always have a few months living expenses in the bank. When the music stops, you won't have time to run and grab a chair. Live on Ramen and pickles until you have saved up enough and then make that number your new "empty". If you increase your cost of living, increase your reserve. Bank account:2mos is the new Inbox:0




4 months of emergency funds + 4 months per dependent is my rule of thumb.


I like that rule. Two months is definitely an absolute minimum. That's when you pull your pockets inside out and say you're broke.




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