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[quote=Anonymous]MB here.  I agree with the concept that someone who can't afford to pay severance probably isn't doing a great job on finances (you are supposed to keep at least 3 to 6 months of expenses in emergency savings).

However, I disagree with the thought that if you have debt, you shouldn't have a household employee.  How are the two connected?  My DH and I both work full time and make almost $500K combined a year and have approximately $1M saved in retirement funds (401ks and IRAs).  We have a nanny because we have 2 kids who are in part-time preschool and need someone to pick them up from school and take care of them until I get home.

We do have debt - a mortgage of a little over $500,000.  We can afford the monthly mortgage payments on one salary but would have to change our budgeting if one of us lost our job.  One of those changes would probably be (unfortunately) to the childcare costs - which are our biggest expense after the mortgage.  (We would pay severance though.)  I fail to see how we should have had our kids in daycare instead so that we could use the savings to pay down our mortgage instead of employing a more expensive nanny.  As it is, we are on a 15 year fixed so we will pay off our mortgage pretty quickly.  Seems odd to say only those who are debt free can hire household employees.  Most people are not debt free until they are older - i.e. a time when their kids no longer need child care!  Plus as a nanny, I would think you would want more employers not less even at the increased risk of being let go without severance pay.[/quote]

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