Laid off and looking for some suggestions (Sorry, long)

[snafu]

laid off

I'm guessing you're in Ont. You're life is about to change in a drastic, unpleasant way. Without an EF, you & DH will need to be aware of every penny spent and weigh which NEEDS will be covered and which will fall by the wayside. He needs to get with the program PDQ.

You've been given great advice though there are a few modifications for Canucks. Does your project extention include EI benefits? Apply for benefits on your 1st unemployed day as you will have a waiting period + any vacation accrual. How many weeks of benefit are available in your region?

I suggest you call your MP's office and have them explain EI benefits. You need to know the Rules before applying as ignorance will you lose you weeks of benefits which will not be added at the end of your benefit period. If you don't like that idea, research on-line or at the library. If you are denied any benefits, Appeal! It's a simple process and most claimaints win.

Have you updated your resume? Create a list of business contacts that might know of jobs. Send out resumes to everyone you know. More work is obtained through contacts than any other means. You obviously have special skills. What other type of employment has the counselor suggested your skills apply?

EI benefits extend to training programs. Ask if you are eligible for any. You are in a horrid job market so learning new skills helps retain child care, gives you a breather, allows you to meet new sources etc.

FICO scores are an American system. 19% APR is low for here, some are going to 28%. Once laid off - call your creditors and request they stop interest charges and reduce the debt.You might have to beg, plead, grovel, be polite but persistent. There is a provincal service called "Orderly Payment of Debt.' Get information from MPP's office. Their debt counsellors can call your creditors and negotiate for no cost of credit and a lower balance. Be careful that you are not joining a For-Profit debt counsel service. They charge fees for doing what you can do on your own.

What can you do to bring in more money? Can you rent a room to someone who can no longer afford an apt.? Can you offer child care? Do you or DH have any skills that can earn income?

I'd choose to retain basic Cable and Internet. However, internet is available for free at every library. If you're not a member, join the library and rent their DVDs for entertainment. They have lots of tot programs. Go to any interview practice sessions you can find, likewise job fairs even if it feels like a cattle call.

There are several grocery discount stores, look in the Yellow Pages for Liquidators. Find out where the nearest Foodbank is, you may need to go there. Schools offer beauty culture where well supervised students offer hair cuts, perms, color, manicure, pedicure, facials for the cost of products.

Meal planning is the most effictive way to cut food costs. wwwCooks.com is merely one site that you can search Budget Dinner. You need to know what food you have on-hand and what is needed to make up healthy meals.
Consider canceling your land-line and revert to cell for job search and Skype for conversations even world wide. You will need to get regular excercise to keep up endomorphs. Look for freebies

[Fizgig]

It sounds like you intend to continue using your "employed" budget until your four month project runs out. I think you should move to your "unemployed" budget right now, with the additional cuts suggested, and use the surplus to HORDE cash in preparation for your layoff. I hate saying to pay only minimums on debt, but that's probably the right thing to do so you can build a stockpile.

People have made excellent suggestions for your budget and I just want to add my vote to a few of the really good ones:

- Do pack lunch for your hubby. It'd be nice if he took the initiative himself but since he's resistant and you're already packing your own, it can't be that hard to pack another to make it a little easier for him.

- Living without cable is EASY. I dropped mine and went to antenna about six months ago just out of principle, because Comcast service is lousy and I didn't want to give them money anymore. Keep the internet connection and you can watch everything you want online (legally), but there are great shows on network anyway. The antenna cost $30 and my picture is clearer than ever.

- You say the daycare people need 3 days/week or you'll lose your spot. If you explain the situation to them, they might be more accommodating than you think. People understand that these are unusual times and many will be compassionate.

- Gym/WW. It's a great move for your health but that's a steep price. Maybe try to find a supportive, free online community and exercise at home and outside. It'll be important for stress relief but if I were you the bill would CAUSE stress!

Best of luck to you - you'll get through.

[Lindahfx]

Suze Orman's advice:

A Change in Credit Card Strategy


If you have an unpaid credit card balance and not much saved up in emergency savings I need you to listen up. My advice has changed.

I want you to only pay the minimum due on your credit card balance and instead make it your top priority to build as much of an emergency cash fund as you can.

Let me tell you why I am now telling you to do this. With rising unemployment, having a big emergency cash fund is vital, even if it means curtailing your credit card repayment strategy.

The sad reality is that the credit card industry is taking actions to protect themselves with no regard to your needs or how good you have been about paying your bills on time. The problem is that most credit card companies are either reducing your credit limits, raising your interest rates and are even paying you to close down your account. Many of you are even finding that when you do finally pay off your credit card debt that the issuing credit card company of that card is closing that card down as fast as they can so you cannot ever charge on it again. You did everything right, and yet still you could have your credit limit reduced, which can have a negative impact on your credit score.

So here is the problem. If you do not have a stash of cash in an emergency fund and you have been using all your extra money to pay down your credit card debt and they keep closing your cards down—what are you going to live on if you lose your job? Chances are you may not have any available credit, or too little credit, to use in the event you are laid off. Nor will you be able to get a new card if you are unemployed.

That’s why I am telling you to pay just the minimum required on your card each month and then use every extra penny you have to build up your emergency savings fund. You want to have a fund that can cover your living expenses for up to eight months.

If you revert to paying just the minimum on your credit card there’s a chance it may indeed hurt your credit score. But as I just explained, even if you do pay it down there’s a chance your credit score will be hurt if the credit limit is reduced.

I want to be very clear: I still believe getting out of credit card debt and making sure your FICO score is as high as possible is incredibly important. For those of you with a fully-funded emergency account please make it a priority to pay off any credit card balances as soon as possible. My new advice is solely for those of you who do not have an emergency savings account, or too small of an account. The single most important Action to take in this severe recession is to build savings so you and your family will be able to have money to cover your basic necessities if you lose your job. As you have heard me say before: Hope for the Best, Prepare for the Worst. And right now we all need to be redoubling our preparation efforts.

Thanks! This is great information. That's exactly what we need to do. I just put out $450 extra out on my ccs. Too bad I hadn't saved that. But I will do it for now on. Great article.

[Lindahfx]

You have a lot of 19% cards -- is there any way to apply for cards with a better rate while you are still employed and do a balance transfer?

Tell your DH to suck it up and take his lunch until you find a job. To make sure he does it, you may have to pack it for him. You can make sandwiches, hot soup in a thermos, leftovers, or find cheap things like burritos that he can take and reheat (if he has access to a microwave)

Actually, I just received a letter from one of my cc's offering a 2.99% APR until Jan. 2010 on transfers (with a 1% transfer fee). I was thinking that I would use that if we weren't going to pay off our cc's which is looks like that's what we will now do.

Also, I agree... he is going to suck it up. I don't care if he doesn't eat at all... as long as he's not spending our $$.

[Lindahfx]

What is House Insurance - $71/month? Seems high if you're talking about home owner's insurance. Especially since you have a home security system. Or are you in some high risk disaster area?

Yes, it is home owner's insurance. Is that high? I'm not sure... we don't live in any high risk disaster area. Hmmmm.... I will ask around with my friends and see what there's is to see if we are in the same ballpark. Thanks.

[Lindahfx]

My only suggestion is if he cant catch on the the situation then take everything for him on that budget and move it to a big fat goose egg "$0.00" I agree with the suggestions thus far, there are a lot of ways to cut down from going over the list. I didn't have internet and cable when I got my job, you can get rid of that all together. I am not sure about Canada but a lot of places in the US are really trying to work with unemployed consumers right now. You need to call everyone you owe money to and explain the situation, maybe you can work out some differed payments that will save your credit and at least buy you some time. Also I don't know about the unemployment situation in Canada but I know here in California I can live off my unemployment for a year.

I would rather get rid of cable than Internet as that is a big way to job hunt. But if worse comes to worse we'll have to consider that too. We are eligible to collect employment insurance for 50 weeks. It's just keeping expenses within that.

[Lindahfx]

Sorry to hear about your lay off. The times are tough and there are a lot of people, very qualified and those that didn't deserve to be laid off, in the same situation.

You're doing the right thing by asking for advice here and I agree with most of the advice given here so far. I am of the school of thought that at the end of the day when all is said and done what you really need is a roof over your head and food on the table. Again:

Roof over your head and food on the table.

So with that said, what you need to do is make sure that you can pay your mortgage and related expenses and food. Make sure that at least 6 months of these expenses are in your savings. In the meantime cut expenses as hard as you can to accelerate the savings rate. This could mean lowering expenses by spending less, negotiating better rates for mortgage and other debt, negotiating payment deferment etc. Definitely look into 0% balance transfer options. Also look into part time work. I understand about the child care, it's hard to take care of the kids every single day and in most cases it's better to have a day or two to yourself but perhaps a family member can help with that which may allow you to save $300 a month.

Goodluck and keep us posted on how you're doing.

Thanks Russell for understanding. I agree... roof over our head and food on the table. We are definitely going to focus on savings now. My concern about taking her out of daycare all together is that there are often 12 months plus waiting lists to get in to new daycares so when I do get a job, I won't have anywhere to put her during the day. I will keep you posted

[Lindahfx]

I am in a similar boat so I understand and am sorry!

First, I listened to the advice others gave me on my post and just deferred my student loan. See if you can do that as soon as you get your UI benefit verification. That will be $310 that can go toward your EF!! Monthly, wow!

Second, hair cuts. I have long hair and bangs and can go a long time without a cut, your mileage may vary. But this is my new strategy, I am waiting for an interview before I get a haircut. I have been looking since NOVEMBER. YES, NOVEMBER and got laid off in JAN and still no interviews. It's rough and my hair has seen better days. If you color, try and do it at home and go one color all over, leave the fancy highlights for AFTER you get a job (if you do that sort of thing...)

Third, food. I've found that there are some surprising expenses that have went up since I've been home that were previously covered by work (unknown employee benefits!!) Toilet paper, tissue, water, electricity, breakfast (we had oatmeal packets that I ate daily), coffee, coffee, coffee! Be aware of those things and budget for them or adjust elsewhere. I now drink regular ground coffee (like Yuban, Maxwell House...) instead of my beloved Trader Joe's Dark Espresso Roast.

Fourth, cable, etc.. Now, my family tends to be nerdy internet people so we rely on that connection. We have completely eliminated cable/satellite from our lives. You know what, you might not NEED WW after that! Really! Get outdoors, go to the library, go to the gym/YMCA/community center, run around with your kid, hit the park, etc. Use Skype for long distance calls from your computer (you will need headphones with a mike...) But everyone is different so maybe you can't give it up, I would at least try it. You might end up liking it! I realize it's cold where you live (yikes-heating bill!!!) but I grew up in upstate NY so I know there is stuff you can do outside even in winter! For free!

Fifth, birthdays/gifts. I am trying to eliminate my gift budget too. My kid makes home made cards (and NO ONE has complained yet!) Saves $3 a bday and they are cute! That is the cost of construction paper from Big Lots and time.

Sixth, kids clothing. I shop now at thrift stores and Children's Orchard. They often have dept store brands for pennies on the dollar. $4 dresses and Orchard has a fill-a-bag for $5 event. You wouldn't believe what I got for $15!!! Check mom's groups and see if there are resale shops in your area. Kids go thru clothes too fast, don't spend a fortune on them! Now I realize even Target is too much unless it's on super-clearance.

I do hope this helps. It's been hard for me because I was making good money (I made almost as much daily as my entire weeks' UI check...) so this is a reality check for me. And I'm trying to get on track and STAY THERE! Yay!

Thanks and good luck!!!!

Re. deferring student loan - I wonder if they would do it where it's my DH's student loan and not mine? It is definitely worth checking in to though.

I like your idea of hair cuts. I will only worry about it when I have a job interview. And even then, go cheap. Good idea.

Good point about the added expenses of being at home. I have a $150 credit at a drugstore (that carries all kinds of household items) so I am going to be stocking up this weekend as it will be worth $170. I'll be getting tp, paper towel, shampoo, toothpaste, etc.

As I mentioned in a previous post, I am definitely willing to give up cable. My DH and DD may not agree though But it is on the list to at least cut back some of the extra channels and if need be, cable all together. I agree about getting out to lose weight. Now that the weather is getting better, I would love to spend my time outdoors and lose weight that way.

I already have my DD make some b'day cards but I am going to have her do all of them for now on.

We have a used clothing chain around here that I used to frequent but haven't recently. I will definitely go there again and reduce that budget.

Thanks so much for your suggestions. And good luck to you too.

[Lindahfx]

me in socal, those are some good down-to-earth tips and observations. When you are really in the grips of a situation, you can be very helpful to the next person. Good goin'!

Yes, I agree. The tips are very useful!

[Lindahfx]

I don't want to restate what others have said, but these are things that totally jump out at me. You've listed a slew of luxury spending at the same time that you've listed consumer debt with sky high interest rates. Those two facts just don't add up. I've got not problem with enjoying the finer things in life IF you can afford them. Right now, you can't. You need to cut things way, way back, and your notes do indicate that you're moving in that direction, but it sounds like you need to get much more dedicated to that goal.

I agree... there are still lots of areas of improvement. That's why I've come to you guys. I agree... we were living a bit high on the hog because we could. Now we need to come back to reality.

As I read your post, you are spending $750 on groceries PLUS $180 on lunches PLUS $100 on dinners. Is that correct? That comes to over $1,000/month on food. Sorry, I don't care where you live. That's simply insane. There was just a thread about eating for $100/month. Good Morning America did a story last week on a woman who ate for $1/day, so $30/month. I'm not advocating that. I think that's really extreme, but you can absolutely eat a decent, varied and healthy diet on $150/month/person. That would be $300 for the 2 of you plus money for your child, so maybe $400 for the month. That would save you over $600/month.
I agree that our groceries/meals budget is very high. However, I should state having visited the US several times, that our grocery prices here are much higher than in the US. My DH is a big meat eater and I find that that adds up. Also, I find that eating healthier as I am trying to lose weight is expensive. We will definitely be cutting back and extras and i'll be making more basic meals. I am a coupon user but I also find that we just don't get the same deals in coupons that you guys can get there... unless I'm missing something. But I'm going to be very frugal for now on. Some day I would love to compare grocery prices with some people on here because I am always amazed at what people say they spend on groceries for a month.

Cable TV is a LUXURY. It is not a need. People often forget that. We have limited basic cable - $10.76/month. I'm not sure what your options are in Canada but you need to call and cut back to their absolute cheapest service. For phone, cable and internet, we pay about $70.

I agree. As I mentioned above, I have no problem cutting out cable tv. i'll be checking in to it this weekend.

$30/month for clothes for a 3-year-old is a lot. Are you buying new or used? I'd be hitting the thrift shops, ebay, craigslist (if you have that there) and friends and family for hand-me-downs.
Again, this was a budget... i certainly don't spend it every month. But I do buy new - although I tend to go for sales and cheaper options. Although I love looking at eBay, I find that with the exhange rate and shipping that it's about the same as buying new. But as I mentioned in a previous post, we do have second hand stores here and the kijiji website (like a Craigslist) that I could be buying used clothing

Hair can be cut to $0. My wife and I both cut our own hair and have for years. I bought a $15 electric trimmer for myself. She does hers with a scissors. If you aren't that brave, go somewhere like Hair Cuttery where it is $15.
I would not trust to cut my own hair but I will definitely go to a cheaper place. And I liked the idea above of only getting it cut when i have an interview.

There is more than enough fat in your budget to get rid of CC#1 and #2 within the next month or two. You absolutely need to be building your cash reserve. Otherwise, what will you live on when your job ends?

Exactly. That's why I like the idea of just paying the min. pyments and building up our savings. Thanks!

[Lindahfx]

When I got serious about my finances, I sat down and wrote down my expenses from most important to least. I made the list with necessities and wants.

Depending on the urgency of your situation, you should cut all wants and find cuts in the needs. Do not assume you will regain your income, plan for the worst. After you have made deep cuts, go back and cut more.

You should look at what can be sold. I would mow lawns to avoid touching my EF.

Very good suggestion. In some ways, my list of expenses is in order of importance. But you are right - review and cut, review and cut. I have some things to sell on eBay/kijiji. I've already sold a few things. Thanks!

[Lindahfx]

I'm guessing you're in Ont. You're life is about to change in a drastic, unpleasant way. Without an EF, you & DH will need to be aware of every penny spent and weigh which NEEDS will be covered and which will fall by the wayside. He needs to get with the program PDQ.
Actually, I'm in Nova Scotia. I agree... we need to get down to bare tacks and he needs to dial in.

You've been given great advice though there are a few modifications for Canucks. Does your project extention include EI benefits? Apply for benefits on your 1st unemployed day as you will have a waiting period + any vacation accrual. How many weeks of benefit are available in your region?
Yes, I am still paying in to EI. We have 50 weeks of benefits. As for a waiting period, I didn't receive a severance so that won't affect the waiting period but I will have about 1 + weeks of vacation.

I suggest you call your MP's office and have them explain EI benefits. You need to know the Rules before applying as ignorance will you lose you weeks of benefits which will not be added at the end of your benefit period. If you don't like that idea, research on-line or at the library. If you are denied any benefits, Appeal! It's a simple process and most claimaints win.
Thanks for the information. I have been researching EI on the net. I should give my MP a call as well.

Have you updated your resume? Create a list of business contacts that might know of jobs. Send out resumes to everyone you know. More work is obtained through contacts than any other means. You obviously have special skills. What other type of employment has the counselor suggested your skills apply?
My resume is well up to date. I've applied for jobs... sent it out to headhunters... contacted my contacts... contacted our EAP program at work. I have some meetings coming up to discuss potential opportunities. I am looking for a career change so I am applying for several jobs for which I have the skill set but not all of the experience requested. I'm hoping that if I can get in for an interview that I can show them that I can do the job.

EI benefits extend to training programs. Ask if you are eligible for any. You are in a horrid job market so learning new skills helps retain child care, gives you a breather, allows you to meet new sources etc.
I have looked in to some of the training programs... most of them are trades related and I am a professional but I need to talk to someone directly in the HR dept.

FICO scores are an American system. 19% APR is low for here, some are going to 28%. Once laid off - call your creditors and request they stop interest charges and reduce the debt.You might have to beg, plead, grovel, be polite but persistent. There is a provincal service called "Orderly Payment of Debt.' Get information from MPP's office. Their debt counsellors can call your creditors and negotiate for no cost of credit and a lower balance. Be careful that you are not joining a For-Profit debt counsel service. They charge fees for doing what you can do on your own.
Does this just apply to cc's? Or could you do it for student loans and mortgages?

What can you do to bring in more money? Can you rent a room to someone who can no longer afford an apt.? Can you offer child care? Do you or DH have any skills that can earn income?
I could certainly work part time. I am prepared to do what it takes.

I'd choose to retain basic Cable and Internet. However, internet is available for free at every library. If you're not a member, join the library and rent their DVDs for entertainment. They have lots of tot programs. Go to any interview practice sessions you can find, likewise job fairs even if it feels like a cattle call.
Good suggestions. I am a member of the library.

There are several grocery discount stores, look in the Yellow Pages for Liquidators. Find out where the nearest Foodbank is, you may need to go there. Schools offer beauty culture where well supervised students offer hair cuts, perms, color, manicure, pedicure, facials for the cost of products.
All great suggestions. We have a foodbank. I'll check out the beauty schools.

Meal planning is the most effictive way to cut food costs. wwwCooks.com is merely one site that you can search Budget Dinner. You need to know what food you have on-hand and what is needed to make up healthy meals.
Consider canceling your land-line and revert to cell for job search and Skype for conversations even world wide. You will need to get regular excercise to keep up endomorphs. Look for freebies

Again, lots of great info. Thanks for all of the suggestions.

[reptile411]

I don't want to restate what others have said, but these are things that totally jump out at me. You've listed a slew of luxury spending at the same time that you've listed consumer debt with sky high interest rates. Those two facts just don't add up. I've got not problem with enjoying the finer things in life IF you can afford them. Right now, you can't. You need to cut things way, way back, and your notes do indicate that you're moving in that direction, but it sounds like you need to get much more dedicated to that goal.

As I read your post, you are spending $750 on groceries PLUS $180 on lunches PLUS $100 on dinners. Is that correct? That comes to over $1,000/month on food. Sorry, I don't care where you live. That's simply insane. There was just a thread about eating for $100/month. Good Morning America did a story last week on a woman who ate for $1/day, so $30/month. I'm not advocating that. I think that's really extreme, but you can absolutely eat a decent, varied and healthy diet on $150/month/person. That would be $300 for the 2 of you plus money for your child, so maybe $400 for the month. That would save you over $600/month.

Cable TV is a LUXURY. It is not a need. People often forget that. We have limited basic cable - $10.76/month. I'm not sure what your options are in Canada but you need to call and cut back to their absolute cheapest service. For phone, cable and internet, we pay about $70.

$30/month for clothes for a 3-year-old is a lot. Are you buying new or used? I'd be hitting the thrift shops, ebay, craigslist (if you have that there) and friends and family for hand-me-downs.

Hair can be cut to $0. My wife and I both cut our own hair and have for years. I bought a $15 electric trimmer for myself. She does hers with a scissors. If you aren't that brave, go somewhere like Hair Cuttery where it is $15.

There is more than enough fat in your budget to get rid of CC#1 and #2 within the next month or two. You absolutely need to be building your cash reserve. Otherwise, what will you live on when your job ends?

2 adults, 2 kids and a dog. Grocery's add up to about $300 per month in our house. I have a hard time figuring out not only this but other threads on how some people pay so much for food.

[Lindahfx]

It sounds like you intend to continue using your "employed" budget until your four month project runs out. I think you should move to your "unemployed" budget right now, with the additional cuts suggested, and use the surplus to HORDE cash in preparation for your layoff. I hate saying to pay only minimums on debt, but that's probably the right thing to do so you can build a stockpile.

People have made excellent suggestions for your budget and I just want to add my vote to a few of the really good ones:

- Do pack lunch for your hubby. It'd be nice if he took the initiative himself but since he's resistant and you're already packing your own, it can't be that hard to pack another to make it a little easier for him.

- Living without cable is EASY. I dropped mine and went to antenna about six months ago just out of principle, because Comcast service is lousy and I didn't want to give them money anymore. Keep the internet connection and you can watch everything you want online (legally), but there are great shows on network anyway. The antenna cost $30 and my picture is clearer than ever.

- You say the daycare people need 3 days/week or you'll lose your spot. If you explain the situation to them, they might be more accommodating than you think. People understand that these are unusual times and many will be compassionate.

- Gym/WW. It's a great move for your health but that's a steep price. Maybe try to find a supportive, free online community and exercise at home and outside. It'll be important for stress relief but if I were you the bill would CAUSE stress!

Best of luck to you - you'll get through.

You are right... we need to move to the new budget NOW. I'm going to implement it this weekend. My daycare worker should be fairly flexible (at least I hope so). She just lives one street over and so it's a more informal environment. She was easy going with another family whose mother was laid off int he past... She should be with me as well. I think you are right... I need to at least quit WW right now. The gym is helping me to destress and get fitter. Hmmmmm...

[DebbieL]

2 adults, 2 kids and a dog. Grocery's add up to about $300 per month in our house. I have a hard time figuring out not only this but other threads on how some people pay so much for food.

You must not be in Canada. They are a lot more expensive here. Linda's bill seems high to me, but I do agree with her that we have higher prices (and we don't get the coupon deals that I hear people talking about from the States).