Thursday, November 13, 2008

Layoffs are happening...

very close to home. I posted about this a bit prematurely the other day . ... apparently it wasn't known yet, and on the off chance that someone recognizes me in this blog, it would have been bad....

But today is the day my husband's firm is letting go of 10% of its attorneys and staff...

It is sobering to us because for the last 12 years it has been nothing but prosperity. The scary fact is that we could be next. His job didn't get cut this time, but with the economy the way it is, there is still a chance. We can't believe how unprepared for this we really are.

I'm a fan of Crown Financial Ministries, and found this link. Although it is Christian based, everyone could benefit from the financial advice given. Our problem is that all of our money is tied up in retirement accounts (and we all know how they are doing) and in the equity of our home. We have less than 1 mos. emergency savings. If this isn't a wakeup call, I don't know what is.

There are a few things we can do to prepare now:

1. Update resumes (including myself, as I would have to go full time)

2. CUT unnecessary expenses

3. SAVE cash quickly! (Christmas will be pared down)

4. Research health insurance plans to be prepared to purchase one while looking for work

5. SELL stuff NOW for a cash boost

I will not feel "safe" unless I have at least 8 mos of an emergency savings. So, that is our next goal. Although I would love to focus on paying off the HELOC, I will choose to save cash.

Any other suggestions? Anyone going through this now? What did you do? I would love to hear from you!


Giraffe Spender said...


I'll be praying for you.

You asked if anyone else is going through this... funny thing (if I laugh, I won't cry...) Hubby has the possibility of a strike in April.

Your list is great!! I'll be checking out that link! Thanks!


jpkittie said...

Glad to hear that your dh is safe this round. That is a good thing. I am with you on tring to get stuff together - but at this point, I am a little too late - right now it is just about survival... if things get any tighter for me, I will have to make some major adjustments (cable/internet/phone/cells) Things are dire at this point, but I have them on deck just in case.

CT Mom said...

Well, you saw how increases were cut for next year. The day after we were reorg'd. No layoff in my department or at CT Dad's company yet, but I don't take anything for granted.

So I'm building up our emergency fund - we have 2.5 months expenses if we both lost our jobs, 4 months of one of our salaries. Still not enough. Also paying off remaining debt - love our stonework, but now we're paying the piper (literally!). Luckily that debt is at 0%.

But we're still doing riding lessons and having some fun - saw Madagascar in iMax on Tuesday and had a great time.

So, like you, we're preparing and taking things one day at a time. Hang in there!

Jennifer said...

Hi Sharon,

While there is not currently any talk of layoffs at my husband's work, we realize that the possibility does exist. I am VERY nervous about this. This is our 3rd month of not paying extra on our Equity Loan and instead putting that money into savings "just in case". I would feel MUCH better if we had savings of 6 months of expenses.

Sounds like you're preparing as best you can. I will be hoping for the best for you.

Canadian Saver said...

Best of luck Sharon, I'll be praying for you guys too {{{hugs}}}

Grace. said...

As far as I can tell, my job is safe--probably more so since the election as I work at a non-profit dealing with low-income folks which was a favored Republican target for years.

But like you, I have neglected my emergency fund--just got my baby steps $1000 locked in a few days ago. I am so behind on my retirement funding that I have funneled every saved dollar into that--necessary, but not helpful if I were to get laid off.