LSAMPLE ANSWERILLUSTRATIVE
THE SHORT ANSWER
I wouldn’t commit to a full year yet. Even after cutting optional spending and adding $12,000 to your $42,000 cash reserve, you have 11 months covered. Close the final month’s gap and price replacement health insurance before one of you leaves; the current estimate doesn’t settle either cost.
KEY NUMBERS
Current cash$42,000
Extra cash needed$12,000
Coverage11 months
WHAT MATTERS
- Childcare and housing are the two costs that make the one-income year tight.
- Pausing retirement contributions helps less than trimming travel and delaying a car purchase.
- The plan needs a separate reserve for health-insurance changes if the lost job provides benefits.
POSSIBLE NEXT STEPS
- Save $1,000 a month for the next year in a dedicated income-gap fund.
- Price health coverage and childcare before choosing which income to rely on.
- Delay the planned car purchase until both incomes return.