William’s $20,000 Cushion After a $36-an-Hour Welding Layoff

By Daniel Okafor

William, a St. Louis welder laid off from a $36-an-hour job, told The Ramsey Show that he has $20,000 in savings and no debt. Benzinga reported the case on November 1, 2026, as he weighed launching his own welding and fabrication business.

The proposed company would center on the trade he already practices. William also wants to continue making metal sculptures. He estimates self-employment will take 12 to 18 months to replace his previous income. That timeline makes the layoff a cash-flow decision as much as a chance to become a business owner.

Is a layoff the right time to start?

William said around 50 workers had been laid off before him. He expected to return to work in about three months, but nothing was guaranteed. In Benzinga’s account, his reserve gave him time to consider the move. It did not shorten the 12-to-18-month period before self-employment replaced his former earnings.

He already owns the necessary equipment and has established an LLC. He has not worked out insurance and liability requirements. He also has not resolved how to find enough customers. Those gaps sit beside a business that could need 12 to 18 months to match his old earnings.

“I’m nervous because I try to live in a very risk-averse manner,” William said. “I’m nervous that I’m using the layoff as a catalyst for a poor decision when I’m not there financially to take that risk.”

The mismatch is concrete: the venture needs up to 18 months to replace a $36-an-hour wage, while William has $20,000 and has not solved customer acquisition.

Why do the hosts favor another job?

Co-host Jade Warshaw backed his concerns. “Your instincts are telling you a correct thing, which is there’s a way to do this that’s wise,” she said. “It’s not just to jump in it with no net and with no plan and with no money.”

Warshaw recommended that William find another job, keep the paychecks coming and build the business gradually. Co-host George Kamel agreed. Another job would preserve his income while giving him room to establish a customer base and resolve insurance, liability and other operating details.

Their recommendation was not to abandon the welding business. It was to sequence the launch around the customer and income risks that William had already identified.

Can the $20,000 cushion support the launch?

William’s savings and lack of debt put him in a stronger position than many aspiring business owners, according to Benzinga. Kamel did not want him to burn through that cushion to fund the venture. “Our goal is to not touch that thing if we don’t have to,” he said. Kamel suggested that William establish a separate business startup fund.

That distinction matters, Benzinga said. Money saved for emergencies does not necessarily cover a year without income. Keeping the emergency reserve separate protects William’s household cash without assuming the new venture can support him during its first 12 to 18 months of self-employment.

William therefore has money available, but not a demonstrated willingness to spend it. The hosts’ plan would let him preserve the reserve while testing whether the business can earn enough to replace his old paycheck.

Can he sell welding as well as perform it?

Finding customers remains another test. Kamel warned that being skilled at welding does not automatically mean William will enjoy selling his services. “You might love welding, but man, you hate getting the jobs,” he said.

William could eventually hire someone to bring in clients. But he first needed to prove that the business could generate reliable income. The sales test comes before any hired help because dependable customer demand must come before the addition of another cost.

What sequence do the hosts recommend?

The segment points to a practical order of operations:

• Find another job and keep the paychecks coming.
• Build the business gradually while establishing a customer base.
• Protect the $20,000 emergency reserve and create a separate startup fund.
• Resolve the outstanding insurance and liability requirements.
• Prove reliable income before hiring someone to bring in clients.

Each step addresses a separate dependency identified during the show. Employment supplies cash, the reserve covers emergencies, the startup fund separates business spending from household protection, and customer demand determines whether the venture can replace William’s former wage.

If William launches before replacing his earnings, he loses the old paycheck while customer and insurance gaps remain open. If he takes another role first, he can protect the $20,000 reserve and prove demand before relying on the venture. The hosts’ answer is a sequence: employment first, a protected reserve second and proven sales third.