A Reddit user earning $700K is anxious about potential job loss due to layoffs at his tech company. He faces a dilemma between paying off his $500K mortgage and saving up an emergency fund. Given the situation, experts suggest prioritizing an emergency fund to ensure financial security, especially with a stay-at-home spouse and two kids. Paying off the mortgage may not be the best option since high liquidity could help maintain financial stability during uncertain times, and actively seeking new job opportunities could prevent prolonged unemployment.
Although it may seem like a logical move to pay off a mortgage... the reality is that this is often not the best idea.
He should focus on building his rainy day fund up as much as possible.
He should also start looking aggressively at other career opportunities sooner rather than later.
A hefty emergency fund can see you through a layoff.
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