We know a layoff is coming in a few months...how to prepare now?

Discussion in 'Budget Board' started by SnowWhite607, Jan 19, 2013.

  1. SnowWhite607

    SnowWhite607 DIS Veteran

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    My husband is a PE teacher and a high school football and softball coach. Well there was a hiring shuffle and hubby got left out in the cold on his football job. Now what that means for us is a reduction in pay and the loss of the summer bonus check. He has already checked with some friends and he thinks he can get hired on at a smaller school for less money though (jr high as opposed to high school). So best case scenario we are looking at about a $2000 reduction in coaching pay plus the almost $3000 summer bonus check. Worst case, about $5000 reduction in salary plus the $3000 bonus.

    If we know a layoff is coming (he will continue to get paid the same amount as we get now thru the end of July) what are some things I can do to prepare now to fit in this new pay into an already pretty tight budget? I work also so me getting a job is not an answer (since I already have one).

    Any ideas on how I can get a jump on this and make it a pretty painless transition. In a few more years it wont be so bad cause our car will be paid off, child support will be over and my child will be out of her braces. But until then.........any ideas for me?

    Thank you!!!
     
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  3. SnowWhite607

    SnowWhite607 DIS Veteran

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    To clarify......those figures were annual salary we would be losing, not monthly LOL! The bonus also comes once a year in August.
     
  4. clm10308

    clm10308 DIS Veteran

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    Since you know it is coming, I would find areas in your buget where you can start cutting back now such as cable tv, cell phone plans, entertainment spending. Could he teach something in summer school to bring in extra income?
    Are any of your kids old enough to get a summer job to help pay for their own expenses?

    My DD17 got her first job last summer, and this school year has enough saved to pay for her own clothing, minor school expenses, and junk food and "toys"
     
  5. SnowWhite607

    SnowWhite607 DIS Veteran

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    Nope, one child who is 12. Not old enough for a job. I consider myself pretty frugal already, I use coupons and combine errands to save money, etc. I just wonder if I should start stocking up on food or things like that. I have no idea but while I have the money coming in, I would like to prepare as much as possible.
     
  6. snarlingcoyote

    snarlingcoyote <font color=blue>I know people who live in really

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    This is something someone on the budget board posted a few years ago that I've never really followed up on - I saved the link in case I ever needed to earn some pin money or just got that nostalgic for teaching. (Actually, I'm about there some days!)

    These are the people that give the SATs, I think, and also do a lot of testing - they use remote scorers. If I can think of anything else, I'll let you know.

    http://www.pearsonassessments.com/pai/ai/about/careers.htm
     
  7. ekatiel

    ekatiel DIS Veteran

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    Could your husband set up some kind of "football camp" for local younger kids for a week during the summer? Or give private lessons to kids who want to beef up their football skills? Both of those could be pretty good sources of income. --Katie
     
  8. snarlingcoyote

    snarlingcoyote <font color=blue>I know people who live in really

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  9. bababear_50

    bababear_50 DIS Veteran

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    I am in the teaching profession and am off for two months every year-no pay.
    Take a look at the Pantry and write a 1 month stock up list
    --now multiply that by three and get busy stocking up now.
    I have a summer time saving account that each month I stock pile money into.

    Best wishes
    Hugs Mel
     
  10. Kae

    Kae DIS Veteran

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    Maybe he could look for another Teaching and coaching job. I don't know how many Districts are close to you, but maybe there is a better place for him. Coaching is a tough job.

    Kae
     
  11. snarlingcoyote

    snarlingcoyote <font color=blue>I know people who live in really

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    What part of Louisiana are you in? I can think of a few things, but they're geographically oriented. There are Angel boxes, where you pay XYZ and get a box of predetermined food - it's not a charity, it's a frugalty - but not every community has them, so you'd have to look online and see if it's done in your area. In some of the cities, there are summer daycamp jobs for teachers - EBR Parks and Recreation apparently hires a bunch of teachers for that purpose.

    Oh, most of the schools have summer tutoring for the kids who didn't pass their EOY or LEAP tests - I've got family members who do that every summer and make a nice chunk of change.

    Or will your DH still have work this summer, just not next?

    Do you shop the thrifts and Garage Sales for clothes and such? That can be a huge money saver, even if you live out in the country. I have friends who live out in nowhere who go into the bigger "bedroom" communities to garage sale on pre-selected weekends and save a LOT of money by doing so. (If you live anywhere near Fort Polk, that is the place to go on the one weekend of the month they have garage sales.)
     
  12. shortbun

    shortbun <font color=green>Peacenik<br><font color=purple><

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    I would figure out what my monthly reduction was going to be and start saving for that now. A $2000 cut annually less deductions might actually be doable if you make a few cuts now and start squirreling money away a little at a time. Cancel the NFL package from cable now...shop for a cheaper phone and internet plan. I found last year that I could easily reduce our monthly by $140-easily-and painfully get another $50 off the monthly expenses. I had a yard sale and made $700 by opening boxes I hadn't opened since our move and getting rid of a few pieces of extra furniture-so glad I did, it was getting cluttered. Your 12yo could babysit or be a mother's helper for their own expense money. Look over your grocery receipts. I always find something on there I splurged on-stop splurging until he finds a way to make up the difference. Do you eat out once a week? Cut out one dining out a month, you'll hardly notice. I'm not normally a fan of store brand items but I tried several and found that about half were really good and saved me money weekly. I've been trying to focus on the reuse of the three R's instead of recycle. I buy bulk cheese now and grate it myself-big savings! I cut back my Christmas spending by $10 per person-saved over a 100 dollars in December.
     
  13. descovy

    descovy DIS Veteran

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    We were in a similar situation in '04.

    I did not stockpile food, clothes or anything like that. I did however, hold onto all my money... spending as little as possible.

    Now in my world, we have a pretty full pantry/freezer all the time anyways. I wasn't in fear of starving. What I was in fear of was a car breaking down or other unexpected bills. You can't pay the mechanic in frozen pork chops! So if I honest to goodness didn't need it, I didn't buy it.

    Since you will have some income coming in... #1 priority is to rework your budget. Total the money you will have coming in and compare it to the "fixed" expenses. Adjust the variable expenses (like food) accordingly. In my world, I am willing to be pretty ruthless when it comes to internet, phone, entertainment, etc... I love these things, but in tough times, yes I will cancel/cut out everything not necessary. I know that isn't for everyone though.

    Live on that reduced budget NOW and stockpile the excess money until the layoff.

    Anyway, good luck... been there and made it out the other end...
     
  14. MomToOne

    MomToOne DIS Veteran

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    The obvious answer is for your DH to get a temporary job over the summer.

    Yes, I know that's easier said than done ;)

    But have him look into things like summer day camps, etc. I know some like to hire teachers as the counselors. Places like the YMCA might be a good fit for a P.E. teacher since those camps tend to be more activity focused - my daughter has gone to one there for years, and has had several counselors that had Master's Degrees in teaching.
     
  15. crisi

    crisi DIS Veteran

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    Hosting a Day Camp (i.e. Day Care for middle school age kids) might be an idea. There aren't a lot of options for supervision for middle school age parents and that is the age at which a lot of them get into trouble left to their own. A "Boys Camp" for kids that age run out of your home or a community center might be something your area needs. He could probably even do it in cooperation with other teachers.
     
  16. nugov2

    nugov2 DIS Veteran

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    So you are looking at a pay reduction of $8,000 a year so that that would be about $667 less a month. Can you switch any of your providers? Phone, cable etc. We just did that and are saving $70 a month on our phone and internet. Maybe eliminate home phone all together and only have a cell phone. Can you do without cable until you can supplement? I guess it is hard to say b/c every family has different needs. Those are things I would cut out first. Next I would cut from our food budget. Another thing is how do you have your pay check taxed? Can you change that withholding less as long as you won't owe. If that wouldn't be enough I would cut the kids activities or at least some of that.
     
  17. cmwade77

    cmwade77 DIS Veteran

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    Ok, here are some things to consider:

    Do you have cable? If so, cancel it and get a Roku Box and Hulu Plus. If you want movies get Amazon Prime or Netflix. Average cable bill is $80 per month around here or $960 per year. Even of you got all three services, you would end up at about $280 per year, but you most likely wouldn't need all three.

    Do you have a land line and cell phones? If so, ditch the landline. Where we live, the cheapest landline is about $40 per month. This adds up to a savings of $480 per year. Also, check for the most current cell phone plans and make sure that you aren't over paying. You should be paying no more than $35 per line for unlimited talk and text or $45 per line for unlimited talk, text & web. Do your kids have cell phones? Many companies will now let you have two phones on the unlimited plans and the others with something like 500 anytime minutes, unlimited text, night & weekends and mobile to mobile for around $5 per month.

    Are you shopping the clearance items at your grocery stores? You can have very large savings by doing so. If the items are on it because they are about to expire, remember most items can be frozen for a month to a year. In many cases its on here because the box cutter they used to open the case cut into the product, but the inner seal is still sealed. You can also combine these days with coupons. For those that love in an area with Fresh & Easy markets, they don't accept manufacturer's coupons, but sign up for their friends card and make sure you put what you are going to buy on as bonus items. They will also send you coupons for something like $5 off of $20, the exact amount varies each time. Additionally if say something is normally $6.99 each or 2 for for 10, you would normally get $1.99 off of each one of you bought 2 of them. Of they are on the clearance rack for $1.00 and you buy two of them, you will still get $1.99 of of each one, essentially resulting in an overage of $1.98 that you can use on other items in the store, the system won't usually give you cash back though. By using this technique, I have walked out with four shopping bags filled with groceries for $0.10. You can usually do similar deals with coupons at other stores.

    Shop for unprocessed, GMO free foods. While slightly more expensive to start, you will find that you will end up eating smaller portions and being full faster, causing you to eat fewer calories. This will reduce healthcare costs as well, not just because of the weight loss, but because of eliminating the GMO foods. Also, look at whole grains that are high in protein, such as Quinoa, Amaranth and don't forget other items like Flax And Chia seeds. You can use these items to reduce your meat costs, increase nutritional value and reduce fat an cholesterol. But make sure the whole grains are GMO free, this is especially true for wheat. You can also mix things like Quinoa in with you meat to stretch it if you family doesn't like the flavor it's self. Overall by doing these things, you will probably save around 35% of your current food costs and reduce your healthcare costs by about 50%, as you will need fewer medications, doctor's visits, etc. but dot forget your fresh veggies. If you can't get fresh, flash frozen is ok as long as there are no additives and it is GMO free. But fresh is always better.

    Out here we have a seconds store that sells stuff that the box got damaged, the product is fine but because the box is damaged, the regular stores won't sell it. I figure I am going to throw the box away anyway and then I can buy these items at a fraction of the cost. Look for similar stores near you.

    For everything else, if you have a smartphone download an App called Redlaser and scan everything you are thinking about buying, it will tell you if there are local or online stores with a lower price.

    When buying online, use Google Chrome and install an extension called Invisible Hand as well as one that will tell you if coupons are available for the site you are on. I do this and always start with Amazon.

    Sign up for cash back sites like BigCrumbs or fatwallet and use them whenever possible.

    Also sign up for the automatic cash back sites like iDine, Plink, UPromise, etc. that you can simply enter your credit card number and it will automatically track your purchases and give you cash back on qualifying purchases.

    Use a rewards card like the Disney Visa rewards card for all purchases, but do not charge more than you can pay off each month and pay it off each month.

    Never purchase something just because it is a good deal. Only purchase what you need.

    Recycle your cans and bottles by taking them to a recycle facility that pays you instead of putting them in your recycle bin.

    Sign up for RecycleBank and get rewarded for your other recycling as well as that of your neighbors. The more people in your neighborhood that sign up, the more you will get.

    Use Swagbucks instead of google. You get pouts for your searches and they can be redeemed for Amazon gift cards. I average about $300 a year in gift cards. They will also give points for shopping and their sites are different than other rewards sites.

    These are a few things that you can do to reduce expenses. There are many, many others that can be done as well.
     
  18. cjstarr

    cjstarr DIS Veteran

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    To the OP I would do away with the house phone if you have cell phones for starters. If you use cell phones I would look at the cost. We went to Stright Talk phones found at Walmart. These plans can be as little as $30 a month for one phone with a 1000 minutes, 1000 text, and I think 3mb's of data or $45 for unlimited of each. If your cell phone is a AT&T or T-Moble phone you can have it unlocked and use it by getting a sim's card from ST. (no this is not an add for stright talk nor do I work for them.)
    We droped our cable plan and just kept the internet service (we have a son that just started college so it is needed) this alone saved us $180 a month and added NetFlix for $8 a month for movies.
    Another thing I might look at would be to pay off the car loan with any savings I have now. This in the long run would save you that extra payment each month.
     
  19. North of Mouse

    North of Mouse DIS Veteran

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    Budget ;)

    Write down everything you spend, *think* before you buy (do I really need this?)

    Set aside money each paycheck, and don't touch it!

    Do you eat out often? Cook at home instead. We did that many years (except for VERY special occasions) and it's amazing what you can save there. Put that money (for each time you *would* have eaten out) in a separate acct. with your *set aside* money from each paycheck.

    Buying additional clothing - most of us can well do with what we have, instead of always needing/wanting the latest.

    We saved in the ways above when we really needed to save fast - *and it works*.

    Good luck!
     
  20. Marionnette

    Marionnette <font color=deeppink>Wishing On A Star<br><font co

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    Losing that kind of income is going to hurt and there are no two ways around it. If your budget is already tight, I don't know where you can do your cutting. Stocking up on groceries now is not going to change the fact that once those groceries are gone, you're going to have to replace them, and you'll do it at prices that are much higher than they are today! Stockpiling alone is not going to make up a $600+/month deficit in income.

    Someone will have to get a job that comes close to closing the gap. Since teachers traditionally do not work summers and weekends, your husband may want to look toward seasonal employment for the summer and something for the weekends the rest of the year. If he's certified as a lifeguard, he might be able to get a job working at a pool. If he has a background in a core subject like English or math, he can work as a tutor.

    In the meantime, keep adding to that emergency fund instead of stocking up on groceries. If anything should happen during the lean times that are ahead of you, you'll be glad that you have cash in the bank instead of cereal on your shelves.
     
  21. SnowWhite607

    SnowWhite607 DIS Veteran

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    Thank you for the replies. I will attempt to answer a few questions.

    Hubby has a cell phone that runs about $45 - $50 a month. I have a Tracfone that I add minutes to when needed (once every 3 months or so I guess).

    A few months ago I looked at our eating out - we spent over $500 in November! So we have cut that down but are still spending about $200 a month.

    Now obviously if we took a $600+ monthly pay cut, we would petition to get the child support down (I know, not gonna be very popular with some people here at the Dis Boards but if we dont have it, we dont have it). We pay about $700 a month in child support so if we could even get that reduced a couple hundred, that would help.

    We are in South Louisiana, close to New Orleans for the person who asked. And yes, we have Angel Food boxes.

    He never works during the summer but all the idea about some sort of camp are good ones. He has actually thought about doing that for softball before since he is a softball coach as well. He gets a paycheck during the summer but I do not. However we will be okay until July, I think thats when his pay is reduced.

    He said the promise of a new job looks good but it will still be a couple hundred bucks a month less than what we have now.

    I like the pantry stock up idea as well!
     

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