How Much Money Have You Got in the Bank?

As backup in case you lose everything TOMORROW?

[hairycoo]

The other thread where the OP lost everything and didn't have much money in the bank made me think of this particular scenario. Due to the volatile nature of the search engine world, it could happen to any one of us. And I always behave as if that is a real possibility.

If you were to lose everything TOMORROW, have you got provisions in place to get you through the recovery period personally (mortgage, living costs, etc) and professionally (employees, business costs, etc)? What are these provisions? Cash? Investments? Property? What has proven to work?

I'm renting so don't have a mortgage to worry about. I have very few financial committments, no kids, I'm financially independent but I may have to support my partner for a while due to redundancy. I don't have any employees either. Just a one woman band really.

I'm not earning tons of money, certainly not enough to buy property as an investment, but if my sites went belly up tomorrow I've got 2 years worth of savings to cover both living and business costs (but if that were to happen, it would be a real setback in me buying my very first home).

How about you?

[wheel]

Well, that's one issue. Savings/investments and prepardeness matters. But I'd be hard pressed to see how I could 'lose everything tomorrow'. I've got multiple income streams from diverse things. If Google took my main site and de-indexed it, I'd notice but it wouldn't be catastrophic.

If I was sitting on one site as my sole source of income, I'd be an extremely nervous person.

[hairycoo]

Wheel, I see your point and it's a valid one. Diversifying is the first step in covering your bases. I have 3 sites with different revenue streams, a combination of Adsense, affiliate and direct advertising but 2-3 of these streams still form the bulk of my revenue.

As unlikely as it is to lose EVERYTHING overnight, it CAN happen, at least to some people. I'd just be interested to know what provisions other webmasters take other than diversifying their revenue streams?

[buckworks]

Focus on developing multiple TRAFFIC streams, not just multiple revenue streams.

[mhansen]

Focus on developing multiple TRAFFIC streams, not just multiple revenue streams.

Ditto what they said! Adsense can be replaced with ANYTHING if you have good real estate, in the path of high traffic, to put a billboard onto. (Start by keeping track of the advertisers in your adsense ads)

To answer your questions directly however... We keep a minimum of 6 months of our business operational expenses in the bank at ALL TIMES, and do not reach into ANY new expense until we have 6 months of savings for that expense alone, set aside to cover it.

For example... when we moved into our office, it was $650/month. We did not sign the lease until we had $3900 ON TOP OF the 6 months of operation expense, set aside.

All said.. we are just a small company, so saving for payroll does not factor into it.

[nomis5]

I have an overdraft allowance of £1,000 which very often is not used. That's my backup!

I haven't been caught out yet although once I did need to take the begging bowl to my mum who at that time was well off.

The way I think is that if I need to dip into savings to cover 6 months without any income then I'm a dead duck anyway. We do have two incomes in our household though so maybe that gives the real security needed.