handling finances when you're between jobs

[Anonymous]

Anonymous wrote:Two tips from when we went through a tough period of unemployment:
1. We started going to the library all the time. It became the thing we did when we needed to get out and go somewhere, because there is no risk of spending money there. You can get movies, music, books and sometimes other stuff like museum passes.

2. Eggs. They’re good and quick on the nights when you are so tired and would’ve otherwise ordered food. Meal planning is great but you also need realistic meals for the nights everyone is too exhausted or busy to cook.

Add to your eggs, cabbage

Cabbage is so cheap. Paired with rice, onions and eggs, cabbage can stretch for 2-3 filling, tasty meals.

[Anonymous]

Anonymous wrote:OP I’m confused. You said you are something like $5K short a month, but you also said you have a lot of savings. What is it? If you have savings, you don’t need to cut back so dramatically immediately unless it’s 6+ months and you aren’t having any luck finding a new role.

Our income for the month will be 5K less than our average monthly expenses.

And yes, I can cover the difference with savings for a little while.

But I'm trying to lower that 5K delta so that our savings can last longer if needed, and so I don't have to pull as much out.

We're not in a bad position financially, but I still think cutting costs is the right move for us right now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why does he still own another house? Now is not a great time to sell a house, but you might want to consider selling.

Also I'm confused, you said you get 2500 a month from the house but it also has a mortgage? What is the math on that? Are you actually netting 2500 a month on the house, after insurance, taxes, mortgage, etc? Or is that just the rent?

If we need to sell the house we will, but as you noted it's not a great time to be doing so.

$2500/mo is the rent we receive. The mortgage is $1500/mo. It may not be the best investment but given the housing market we're going to try to hold on to it for now.

I’d sell the house in a heartbeat. The housing market isn’t that bad and while you may think you’re pocketing $1000 a month I assure you’re it’s less. Having the equity in your bank account would be huge.

[Anonymous]

OP, your situation sounds very similar to ours and reading the suggestions on this post has been helpful. My husband was the breadwinner and he lost his job. Severance ends soon so we're buckling down. This is what we've done so far that has had the biggest impact...

-My industry is not as volatile as his so I got a better paying job with better benefits that will cover the family during any gaps. My new salary cannot cover the costs of our current life but everything helps. I'm working more and have less flexibility but my husband is picking up the slack where he can while still actively searching for a job.
-File for unemployment when your severance ends. It's not much but it's something.
-We stopped using Amazon and online shopping in general as much as possible. Huge savings here.
-We cut activities for the kids minus what was already purchased. Also a huge savings here.
-We have great credit so opened a zero interest cc we can use in case of unexpected expenses and will plan to pay the balance asap once he gets a job.
-Cut back on eating out, delivery and any specialty food items. The stress is real and despite really wanting to order delivery on multiple occasions, we threw something else together for dinner instead.
-Took an inventory of subscriptions and cancelled nearly all of them
I'm hopeful that something will come along for my husband but the job market is tough to say the least so we are planning accordingly...
-We do not want to take out a home equity line of credit but will consider doing so if things get bad
-We also have a rental property, the market is not great. We will try to hold onto it for a variety of reasons but would sell it if necessary
-He is actively looking for contract or temporary work. Since we're under my benefits this is doable and something is better than nothing.

This is really hard to go through but I'm grateful that we have some savings and options. It's been extremely stressful though. I'm scared that our retirement is f#*ked but I'm attempting to take it day by day instead of spiraling into an anxiety stronghold. Good luck to you, I hope you're able to find something quickly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP I’m confused. You said you are something like $5K short a month, but you also said you have a lot of savings. What is it? If you have savings, you don’t need to cut back so dramatically immediately unless it’s 6+ months and you aren’t having any luck finding a new role.

Our income for the month will be 5K less than our average monthly expenses.

And yes, I can cover the difference with savings for a little while.

But I'm trying to lower that 5K delta so that our savings can last longer if needed, and so I don't have to pull as much out.

We're not in a bad position financially, but I still think cutting costs is the right move for us right now.

Yes that makes sense. And just getting a handle on what your big snd small spending categories are and where you can cut is a smart thing. Good luck OP. Hopefully you find something soon

[Anonymous]

I'm not telling you what to do, but here's what I did:
Never had a 401k offered at work. I funded my Roth IRA, learned to invest and now I get 5-10% return a month. 401k is holding you back as someone else is doing the investing and got you into slow moving mutual funds with fees most likely.
I sold my three properties, put money into the market, where it did 5x.
I have free ex employers calling me to come back to work. They are raising the salary with each call.
I never had the services and expenses you do. It's almost like you started from top down, not bottom up.
401k is nothing like Roth IRA. I'd stop it now.
It's a shame that you saved instead of learning all about the markets and investing. The last 16 years have been great. The dips were all buying opportunities.
For a job, dog sit, babysit, or apply at any restaurant.

[Anonymous]

Anonymous wrote:What is a composting service?

Compost in your backyard! Just buy a big composter (or a little one). It’s easy and you can use the soil in your garden.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Two tips from when we went through a tough period of unemployment:
1. We started going to the library all the time. It became the thing we did when we needed to get out and go somewhere, because there is no risk of spending money there. You can get movies, music, books and sometimes other stuff like museum passes.

2. Eggs. They’re good and quick on the nights when you are so tired and would’ve otherwise ordered food. Meal planning is great but you also need realistic meals for the nights everyone is too exhausted or busy to cook.

Add to your eggs, cabbage

Cabbage is so cheap. Paired with rice, onions and eggs, cabbage can stretch for 2-3 filling, tasty meals.

And pancakes. You can do pancakes with eggs and milk in the batter for some protein. Or you can make a frittata with sweet potatoes and some cheese. I ate a ton of eggs and rice in grad school and also leaned on carrots a lot for veggies. You can mix rice up with chicken stock if it gets boring. Trader Joe’s is usually less expensive, so you may want to look there. I would also try to eliminate as much single serving stuff as possible since it’s more cost effective to buy a big carton of yogurt than like 6-8 little yogurts. If portion size is important you can measure things out.

[Anonymous]

Do not sell the house. Get a part time job, even a delivery service while you look for work. Cut back on all expenses.

[Anonymous]

If you can’t survive a few months off work, but can afford composting services, then you were clearly living beyond your means.

[Anonymous]

Anonymous wrote:If you can’t survive a few months off work, but can afford composting services, then you were clearly living beyond your means.

+1
Way too much overspending especially on frivolous things .

[Anonymous]

Learn a trade

[Anonymous]

Adjust husband's tax withholding. He should be able to take home more. Also, he can dial back his 401K to the match, but not completely.

[Anonymous]

You have a large amount of discretionary spending. Like a weird amount for someone who is worried about finances.

[Anonymous]

Anonymous wrote:If you can’t survive a few months off work, but can afford composting services, then you were clearly living beyond your means.

Totally! Actually makes me think this is a troll. So clueless.