DGS--Fire drill!

iVillage Member
Registered: 11-14-2008
DGS--Fire drill!
10
Wed, 02-13-2013 - 11:36am

Well we have not had one of these in awhile...thinking of you Lil!(I think that is who used to give them??!)

The purpose of a fire drill it to just see where you are at financially and how you would handle a life changing event were it to happen.

So this is your drill story:

You have lost your job and it will take 3-6 months to find another one. How will this affect your day to day, long term finances and how would you handle this situation. Give us a 3 and 6 month answer.

Well for me since I own my own business and have been not working due to having a baby since June we are living on one income. I suppose we always have or we wouldn't have been able to pay off the amount of debt we have so far.  I do not receive unemployment benefits. We worked it out and paid off so many things that we were able to do this. However, if my husband lost his job we would probably be ok for 3 months. Not as to say we would be in great shape but we would survive without credit.

Now 6 months is a different story. I could go back to work early though. That job is sort of waiting for me. My staff is doing this as a favor to me working more so I could go back with no problem. My salary is the lesser of the two though so it wouldn't meet all out needs. But hopefully I would go back sooner than the 6 months and we could limp along. Plus I suppose we could stop all retirement contributions for this period to add to the cashflow before using credit. Towards the end though you never know. This is one of the reasons it is important to have cash and sinking funds to fall back on. The efund would not quite cut it here, especially not for that long. Oh and we have the option of skipping a mortgage payment once a year if need be so if we were getting down there that is an option. 

I'm not big on asking for help from family...I'd like to think we could do this one our own but I would ask if I was really desperate. 

I can't wait until we pay off our truck to have that payment gone. Oh and having my store on better footing wouldn't suck either! Oh in time it will all come together. I would hate to have to use retirement savings in this situation but I would if I couldn't feed my family. 

This would not be a good situation. I think we would be ok but it wouldn't be easy and very stressful. 

Tell your story if you want to!

iVillage Member
Registered: 11-14-2008
Wed, 02-13-2013 - 11:48am

Oh the day to day would be full of worry and trying to cut back. I'm sure my husband would be looking for work daily and would take a job that wasn't what he was trained in or used to. 

In the long term...honestly we just started saving for retirement in the last couple of years so that couldn't even possibly take a major hit but I would hate to lose what we have and it would be especially be horrible to lose the good habits we have so recently acquired. 

iVillage Member
Registered: 10-01-2008
Wed, 02-13-2013 - 3:20pm

I would have to come up with 2 -3 weeks of $518 payments to the BK Trustee until I could get an emergency court date to get my payments lowered to our newly adjusted income.  Since I could quality for $275 week unemployment, I expect that would be the rage of my next payment.  I'd take a hard look at my cable bill and probably change some things.  DH would just have to live with it.  I'd go back to my previous cell phone and drop the data charge from my plan.  I would probably be able to lower the food bill by simply being home to cook me and think about saving money by growing a nice big garden from seeds.  I'd also start some craft projects to sell on the side.  I've been wanting to make some homemade purses.

We only have one year plus one week to go in our BK payments.  I'm hoping I can hold onto this job for one more year.  Then, I've already made plans to start looking for a job closer to home or from home.  DH agrees, he wants me off the road on this daily long commute.  

One year, one week to financial freedom.  One pound away from loosing 10 lbs. in 5 weeks. And one day away from my sweet husband being off the road from his most recent trip to Atlanta. 

LIFE IS GOOD!

iVillage Member
Registered: 10-17-2010
Wed, 02-13-2013 - 4:07pm

Hmmmm... If I lost my job we would be fine.  My income is extra for spending and extras, so we would do fine without it.

If DH lost his job due to cutbacks he would receive a severance package and that would get us by comfortably for 3 months.  It would be roughly 30k.  We would have to tighten up and not spend extra to stretch it for 6 months.

iVillage Member
Registered: 12-31-2010
Wed, 02-13-2013 - 8:55pm

It would not be easy for us, but if it were me, I would get unemployment and DH can pay the rest of the bills.  If it were him, he would get a severance and fortunately he gets calls weekly for job opportunities, so he would probably find something even better.  But if he did not, we would have to dip into our savings, which we are just starting to build up.  That is not a good thought, so let's just go with us both working! ;)

#Marie
iVillage Member
Registered: 04-10-2003
Wed, 02-13-2013 - 9:43pm
It would be tough but I think I could make it. I would have 6 weeks of severance so I would immediately ome home and cut cable, cell, gym, cleaners etc etc. If I didn't have those things and put a hold on the snowballs and sinking funds, I would be able to stretch the 6 weeks into 8-10 weeks. Once that was up I would have to use sinking funds and Efund. The good news is that I'm always being recruited so I would *hope* that I could find a job quickly so that it wouldn't do serious financial damage.

Bex -

iVillage Member
Registered: 04-08-2008
Wed, 02-13-2013 - 9:46pm

Hmm...that is a question!

Our efund would cover us until the unemployment kicked in. We would probably sell the car after 3 mos when I still hadn't found work. DH only works 10 mins away and can use a bicycle or scooter.

With the savings in childcare, eating out, children's sports, etc we could make it work with unemployment. I also have a PT job that I ramp up to earn another $100-200/month.

Dee

Avatar for poorboy2011
iVillage Member
Registered: 10-02-2011
Wed, 02-13-2013 - 10:31pm

If I lost my job, that would probably mean either I've exhbited egregious dereliction of duty or committed a crime, or I'll be suing my employer for breach of contract. By egregious, it's gotta be really big. I mean, so many of my colleagues sleep with students and they're still here. I'm actually a pretty straight-laced guy, so I'm pretty safe. If I committed a crime, I guess I'd end up a "guest of the state," as mobsters would say. Three squares, and maybe time off for good behavior. It's even less likely. As for the third possibility, I don't have money for lawsuit, unless it's a cheap one that I can put on credit card.

I am insured against short term disability. Up to three months, I think. 

If I lose my job because my university collapsed, I don't expect to find another job within 6 months, because that means government would be nearly insolvent. I don't know what I'd do. Maybe "go off the grid," as seen on TV: pack up my hunting gear and disappear into the woods, wondering when I'll have to go to the dentist again.

Speaking of my job, I'm tendering my resignation. The effective date is quite far off, as I plan to serve out the term of my contract. I hope I'll have a job before then.

Community Leader
Registered: 08-25-2006
Thu, 02-14-2013 - 2:53pm

I had to re-read the question.  It infers that we WILL find another in job in 3 to 6 months.  

If that was the case, I would receive unemployment.  But even with that (2/3 of current salary???) and no health insurance, I would pretty much be scr*wed.  

In reality, my SO isn't going to let us go without food and utilities, but I don't think he would take up that much slack.  He still has to make sure he has prudent reserve for his business.  Guessing although SO would do what he could for those 3 to 6 months, we would probably cut back on cable and my cell phone.  And review the vehicle situation.  

I have unforntuately learned the poverty dance, and could do it for several months, but health insurance would be the real kicker here.  I suppose that 2/3 my current salary may qualify me for our health plan here.  

Serenity
Avatar for turtleemom
iVillage Member
Registered: 07-25-2007
Fri, 02-15-2013 - 10:58am

If DH lost his job, we would be fine.  Our only monthlly bills are rent and utilites and unemployment would cover that plus food.  While work currently pays DH's cell and internet, we pay upfront and the reimbursement checks go into savings so really no more money spent than now, just less money saved. The added expense we would have to delve into savings for, would be to Cobra our health insurance at about $1000 a month. Any incidentals extra classes for DS, gifts ,etc that fell during that time would come out of short term savings.  We wouldn't need to touch our EF.

 DH is well regarded in his field and would have options.  Serious Illness would be life changing. This would simply be job changing. 

Community Leader
Registered: 08-25-2006
Fri, 02-15-2013 - 1:24pm

((((Speaking of my job, I'm tendering my resignation. The effective date is quite far off, as I plan to serve out the term of my contract. I hope I'll have a job before then.))))

So glad to hear, PB.  

I know you are discouraged, but so glad to see you can find humor in it all.  Always love your posts.

Serenity, CL Making a Second Marriage Work

Serenity