Job Loss WWYD-Update pg 2

[gottalovepluto]

Being diligent about grocery prices helps for sure. Also take the time to review the coupons from your store for the weekly ad and online offers. Couponing can be a never ending black hole that encourages me to buy things I don't need but by confining myself to the store's offers it's helped my budget. If the store has a rewards program sign up and pay attention to the offers. We go to Target armed with our coupons and use the Red Card for the extra 5% off. We almost always get better prices than at our local Save Mart unless the item is on sale.

And I second signing up for unemployment pronto. In some states I know it's barely a drop in the bucket but every drop counts!

 

[tapplebapple]

January 4th, my boss gave me the heads-up that my role was on the cutting block and she thought it would happen in March/April. I am a single mom with one teenager so I immediately went into conserve mode and job search mode. I immediately cancelled HuluPlus, reduced my cell phone plan as much as possible (basically told my daughter she couldn't use data until I had a new job and I only used it when I had to), started playing around with using less electricity and heat, only let myself go out to eat once/week and all other meals were prepared at home (I was really shocked at how much of a cost saving this was). I also delayed the annual eye exam and dental cleanings as my insurance didn't cover these and neither were absolutely necessary at that time. I also traded my nice, luxury car for a very inexpensive leased vehicle that saved me $300/month. Honestly, I really am liking the new car

I also moved to a cash only basis instead of using my debit card for everything. I gave myself a budget for the week that included groceries, my one meal out, gas and whatever other expenses I had for that week (prescriptions, doctor copay, pet supplies). Using only cash also made me much more diligent about not overspending. I treated it as a game to see how I could make the money in my wallet stretch so I didn't feel like I was denying myself anything. It did work.

Every extra penny went into my emergency savings and I was psyched to watch it grow!

Beyond money saving, I also attacked my job search. I decided that I didn't have to make a change yet, but it didn't cost me anything other than time to job search. I figured I could interview as much as I could and I wouldn't have to made any decisions until I had an offer in hand. That made the whole job search feel less scary. It was more like an adventure to see if the grass may be greener elsewhere because I really did love my job. I started applying to job ads I saw on Indeed, Monster, LinkedIn, CareerBuilder and CraigsList. I also posted my resume on those boards minus CraigsList. It felt good to have people reach out to me saying they liked my background, even if the job was not something I would ever consider. Lastly, I researched who the other companies were who had the types of roles I did and I wrote an email to the owners of those companies, basically saying "don't you want to hire someone like me?" Of course, my email was much better than that, but that was the gist of my message.

What happened, was that one of the companies I proactively reached out to called. We chatted, had an interview, had a second interview and then an offer came early March. This really forced me to make a pro/con list for the new opportunity and my current job, and I surprised myself by deciding I was ready for a new challenge and I accepted the new job. I can't wait to start on Monday!

I ended up saving quite a bit of money and will leave some in my emergency fund and the rest will go toward some credit card debt. I also plan to continue with many of my new frugal ways as I found that I actually like saving!

Hope there are some nuggets here that may help/inspire you

 

[aquabone1109]

This is why it's always important to save up at least 6 months of income in case of a layoff or medical emergency where you may be out of work for an extended period of time.

 

[teller80]

If you're not locked into a cell phone plan, look into Straight Talk or Total Wireless. We have TW and its $30/month for unlimited talk & text and 2.5 gigs of data. I've never come close to using that much data, I use wifi most of the time.

 

[crisi]

On insurance, if it comes in high check out your state exchange. You can usually get something high deductible for less than your COBRA payments. In fact, I got better insurance for less through the exchange. We don't get a subsidy.

 

[leebee]

Thanks for the advice everyone. I am really hoping that none of this will come to pass, but better to prep a bit.

The insurance was one thing that totally slipped my mind because I never think about it. According to cobra it's the full cost of your plan plus 2% so that would be about $600/month for me.

I cook from scratch as it is, but I could definitely be more diligent on shopping sales.

Remember with COBRA, it's the full cost of what both you AND your employer pay for your premium, plus 2%. We only pay about $500 a month, but DH's employer pays almost $1500 a month for us. COBRA was going to be over $2K per month for us. We rolled the dice and went without... we knew it was only for three months, so we crossed our fingers and took the chance. This was before ACA, so there weren't really any other options.

 

[crispychicky]

Make sure you have a complete, up to date list of your co-workers/clients/suppliers/etc and their contact info.
Make sure you have a copy of your latest performance appraisals.
Make sure you have a copy of your last pay statement.

 

[TheRustyScupper]

I've thought of so far
-Cut cable, Netflix, etc. (I'll need to keep Internet for job searching) (YES)
-Cut maid service (YES)
-No more eating out (YES)
-Freeze on all non-essential purchases (YES)

Basically, if you do without it, cut it until a new job appears.

 

[needsadvice]

Update! Thanks for all of your advice! You definitely thought of things that I didn't!

It seems like we're looking at a whole departmental ordeal so the good news is it's likely to take longer than if it's just my one position.

I've made all my yearly appointments plus one dental for a tooth in the next few weeks. That way if I end up with catastrophic only (or ridiculously high deductible) I'm not missing anything routine.

I have assessed my "extras", which I admit there are quite a few, to determine when I will cut them (based on cost and value to me) if push comes to shove.

Other than that I am actively looking and going to continue plugging along.

I am not yet making any changes to my daily living. I will continue to keep an ear on the situation and re-evaluate as I go.

Any other thoughts, ideas, etc. is more than welcome. This is my first experience with something like this.

 

[Livvie]

Update! Thanks for all of your advice! You definitely thought of things that I didn't!

It seems like we're looking at a whole departmental ordeal so the good news is it's likely to take longer than if it's just my one position.

I've made all my yearly appointments plus one dental for a tooth in the next few weeks. That way if I end up with catastrophic only (or ridiculously high deductible) I'm not missing anything routine.

I have assessed my "extras", which I admit there are quite a few, to determine when I will cut them (based on cost and value to me) if push comes to shove.

Other than that I am actively looking and going to continue plugging along.

I am not yet making any changes to my daily living. I will continue to keep an ear on the situation and re-evaluate as I go.

Any other thoughts, ideas, etc. is more than welcome. This is my first experience with something like this.

I would make changes now, so when the time comes, you have that extra money set aside to avoid the situation that started the thread in the first place.

 

[starry_solo]

I would make changes now, so when the time comes, you have that extra money set aside to avoid the situation that started the thread in the first place.

Agreed. Keep what you save by not having those extras.

 

[needsadvice]

I would make changes now, so when the time comes, you have that extra money set aside to avoid the situation that started the thread in the first place.

I guess I don't really understand this. How would I avoid the situation? If you have no more income it would seem the only prudent thing would be to trim the extras, which is what I was seeking advice or ideas on.

Yes, I could cut all that stuff now but why do that on an if? To me its do you want to sacrifice now or later. I don't see the difference other than preference.

 

[Livvie]

I guess I don't really understand this. How would I avoid the situation? If you have no more income it would seem the only prudent thing would be to trim the extras, which is what I was seeking advice or ideas on.

Yes, I could cut all that stuff now but why do that on an if? To me its do you want to sacrifice now or later. I don't see the difference other than preference.

If you don't understand why you should cut out all those unnecessary things now since you will be losing your job eventually, nothing I say will make a difference.

 

[needsadvice]

If you don't understand why you should cut out all those unnecessary things now since you will be losing your job eventually, nothing I say will make a difference.

That seems a bit harsh. I guess from what I found out today about timing that I have high confidence that I won't have a gap in income. But if I did then I could cut where I can to conserve money and then continue to make small adjustments to re-supply once I have income back.

Is there something that wrong with this thinking?

 

[piccolopat]

I guess I don't really understand this. How would I avoid the situation? If you have no more income it would seem the only prudent thing would be to trim the extras, which is what I was seeking advice or ideas on.

Yes, I could cut all that stuff now but why do that on an if? To me its do you want to sacrifice now or later. I don't see the difference other than preference.

Do you have an emergency fund of at least 6 months of income saved already? If not, that's the reason to cut non-essentials out now. You want to be as prepared as possible if you lose your job and if you luck out and that doesn't happen, you will have the savings for when something else happens like unexpected car repairs. Having extra savings in the bank can help reduce the stress of being out of work.

 

[TwoMisfits]

That seems a bit harsh. I guess from what I found out today about timing that I have high confidence that I won't have a gap in income. But if I did then I could cut where I can to conserve money and then continue to make small adjustments to re-supply once I have income back.

Is there something that wrong with this thinking?

Jobs don't always come when and where we want them for the income we want them at. My family has had folks out of work over 2 years before (the higher your current job and salary, the harder it seems to get hired - funny that)...and we've had folks out of work for only 2 weeks. It's the uncertainty of that timeline that causes many folks (including me) to encourage you to cut out some extras NOW and to save more. Most unemployment is only 2/3 of salary for 6 months and then nothing...having extra savings in the event you were unemployed which would enable you to weather a financial storm that might be longer than that time can only help you in the long run.

I mean, as an example, maid service is something most folks dream of...and isn't an "extra" that would cause a substantial change in life enjoyment, but would start getting you substantially more savings very quickly and very easily.

 

[piccolopat]

That seems a bit harsh. I guess from what I found out today about timing that I have high confidence that I won't have a gap in income. But if I did then I could cut where I can to conserve money and then continue to make small adjustments to re-supply once I have income back. Is there something that wrong with this thinking?

I'm not sure I understand your thinking. Just because it may now be the whole department and not just you doesn't necessarily mean it will take longer AND it may also mean more people competing for the same types of jobs once the layoff occurs. Why do you think you won't have a gap in income? Not only could it take longer than expected for you to find a new job, the jobs that are out there might not be at the same salary or benefit level. You might even have to settle for part time work temporarily. People are trying to make you understand that it is highly unlikely that you will leave one job on a Friday and have a new, better job on Monday. The more savings you have, the easier it will be for you to get through the difficult times. If you don't have a good emergency fund, just cutting out a few things may not be enough for you to get by until you find a new job. Good luck!

 

[needsadvice]

I'm not sure I understand your thinking. Just because it may now be the whole department and not just you doesn't necessarily mean it will take longer AND it may also mean more people competing for the same types of jobs once the layoff occurs. Why do you think you won't have a gap in income? Not only could it take longer than expected for you to find a new job, the jobs that are out there might not be at the same salary or benefit level. You might even have to settle for part time work temporarily. People are trying to make you understand that it is highly unlikely that you will leave one job on a Friday and have a new, better job on Monday. The more savings you have, the easier it will be for you to get through the difficult times. If you don't have a good emergency fund, just cutting out a few things may not be enough for you to get by until you find a new job. Good luck!

Thank you for explaining a bit further. It's not just the whole department that may be reshuffled that makes me think I'll have no gap in income, but that the timeline is much longer than I was afraid of last week. I'm obviously actively searching already.

I think as well that part of the confusion may be because the Dis ate one of my posts (or way more likely I typed a response and closed it out before hitting send). I thought I had responded on the first page when the 6-month emergency fund was initially brought up.

If I don't change anything about my current habits I have way over 6 months of living expenses in my long term savings that I could use. It's not necessarily ear marked for emergency but it's not for anything else. I also have my short term which is about a month and a half that's generally for car repairs, wedding gifts that come up out of nowhere, etc.

I would like to use as little of my money pot that I have to in the event of income loss. I do see you point that I could live really lean now for even more though. I'm not generally super frugal so it's tough for me to make those decisions when I don't have to (obviously I save $x for long term and short term funds plus retirement, etc.)

 

[needsadvice]

Jobs don't always come when and where we want them for the income we want them at. My family has had folks out of work over 2 years before (the higher your current job and salary, the harder it seems to get hired - funny that)...and we've had folks out of work for only 2 weeks. It's the uncertainty of that timeline that causes many folks (including me) to encourage you to cut out some extras NOW and to save more. Most unemployment is only 2/3 of salary for 6 months and then nothing...having extra savings in the event you were unemployed which would enable you to weather a financial storm that might be longer than that time can only help you in the long run.

I mean, as an example, maid service is something most folks dream of...and isn't an "extra" that would cause a substantial change in life enjoyment, but would start getting you substantially more savings very quickly and very easily.

This is a really good point. Nobody likes to think that they could be in limbo for so long, but it does happen.

My plan going into this has been to give it about 6 months to find the right job and the reasses after that as by then it may be more important to show something.

 

[crazelion]

I would start now looking for a job. I would keep my options wide open and consider a whole new career. I have been layoff a number a times. I never consider getting my CDL at all. I went work for Greyhound. They teach how drive a bus everything. I now make much money when I was working in computers. Way more than I was teaching. They is really need drivers bad to.