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Unread 02-05-2009, 08:37 PM
 
Location: Memphis
948 posts, read 2,281,531 times
Reputation: 509
Default What do I do if I lose my job?

What do you do if you loose your job and you don't have enough money to pay your bills? What do people do.
I work retail and my husband is in the airline business. Right now we make just enough to pay all our bills and debt and have a little bit left over for food but what if one of us loses our job? What do we do then? Live on the street? File bankruptcy?
Does anyone here have an experience you would like to share?
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Unread 02-05-2009, 08:44 PM
 
Location: Virginia
931 posts, read 2,424,130 times
Reputation: 423
Don't you have a savings account? How long would you be able to live off your savings?
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Unread 02-05-2009, 08:49 PM
 
6,589 posts, read 15,042,901 times
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Use savings, use credit cards, use 401(k), borrow from family, move in with family, sell things, get new jobs - not necessarily in that order, except using savings first. You do have some savings, right?
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Unread 02-05-2009, 09:01 PM
 
Location: La lune et les étoiles
14,449 posts, read 8,009,565 times
Reputation: 14582
Pay yourself first - each time you and your husband get your paycheck, add YOURSELVES to your list of bills and make sure YOU are your top priority in being paid.

Even if you only pay yourselves $25 or $50 each paycheck you will easily beef up your savings.

Start saving your money. Start budgeting. Start living below your means. Stop living paycheck to paycheck.

Take your credit cards(and debit cards) out of your wallets. Start using cash to pay for the essentials. Psychologically, you tend to spend less when you use cash vs credit/debit cards.

Cancel your cable. Start planning your meals for the week ahead and shop accordngly (use coupons while you're at it)

Take control of your financial life and don't live in fear!
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Unread 02-05-2009, 09:41 PM
 
Location: SE MO
209 posts, read 335,635 times
Reputation: 132
Quote:
Originally Posted by FarNorthDallas View Post
Use savings, use credit cards, use 401(k), borrow from family, move in with family, sell things, get new jobs - not necessarily in that order, except using savings first. You do have some savings, right?
This may not be the best possible answer. Your actions will need to be divided into two categories. Things that you should do now and things that you can do later. Things you do immediately 1) file for unemployment 2) tell the mortgage company you are unemployed and ask for suggestion on how to deal with the mortgage 3) do an honest accessment of your financial situation 4) cut expenses to the bone 5) retain cash-pay no bill before its due. The list goes on. Keep in mind that just becasue you lose your job, it doesn't mean you will be thown out of your house the next day. You will have several months to deal with the mortgage company if you engage them early. If fact, if losing your job is a very real possibility, call them now. Find out what they can do and if they will work with you. You will not be the first person to call about your situation.

Raiding your 401(k) is the absolutely last thing you want to do because of the pentalties and taxes. The first choice with the 401(k) or IRA is to convert to a Roth IRA. You will owe the tax but with your income reduced, the tax may be significantly reduced. See your tax planner. The second thought would be to convert your Roth into low cost, high-yield bond mutual funds to create monthly income. A $100k investment in Vanguard's (VWEHX) will currently yield 10.17% or about $800/month in tax free income. There are obstacles to this plan. See your financial advisor or CPA for details. But for folks who have had a Roth account for 5+ year this might work.

Longer term planning might include some the things oleo mentioned like moving, finding a new job, selling stuff and etc. Using credit cards is another last choice option because you will still owe the money, plus the very high interest rate. Borrowing from family would be the first choice. The best option is to talk with your CPA or financial advisor as they should be able to provide a checklist of first, second and third steps you can take. My 2-cts worth.
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Unread 02-05-2009, 09:49 PM
 
3,842 posts, read 7,515,450 times
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You live in your car or you live on the streets.

and what do you mean pay your bills? Are you talking about credit cards? If you have over 10k cc debt, just file for bankruptcy. So much easier. Especially if you have no assets that can be seized it is a no brainer.

Quote:
A $100k investment in Vanguard's (VWEHX) will currently yield 10.17% or about $800/month in tax free income.
Until you adjust for inflation. Remember those are dollar based assets meaning they don't adjust for inflation like an asset backed security would.
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Unread 02-05-2009, 10:07 PM
 
Location: Some place very cold
5,503 posts, read 12,719,382 times
Reputation: 3868
Quote:
Originally Posted by redwine View Post
What do you do if you loose your job and you don't have enough money to pay your bills? What do people do.
I work retail and my husband is in the airline business. Right now we make just enough to pay all our bills and debt and have a little bit left over for food but what if one of us loses our job? What do we do then? Live on the street? File bankruptcy?
Does anyone here have an experience you would like to share?
If you are already teetering on the edge, it doesn't take much to push you over. Does it?
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Unread 02-05-2009, 10:18 PM
 
Location: So. of Rosarito, Baja, Mexico
4,963 posts, read 8,730,402 times
Reputation: 3577
I'm retired (widower) and can understand your situation.

I did have 7 kids to feed when the wife and I had to budget ourselves. I was the sole provider and she had a job every so often to help make ends meet.

Key thing is to stop shopping without absolute necessity.

I have a bad habit of buying things I do not have to have in todays market.

I make a list of possible things I would like to have or maybe need (ego I guess) to make myself happy.

I go to a store like Walmart and just look at the items on the list...thinking that "do I really need this junk"? Naw...end up buying only the basic items that make my day.

Leave the Credit Cards at home...as they are the incentive to grab things without using any logic.

Living from paycheck to paycheck is a pain. I have been there so do understand.

Relax a little and stay away from the "What do I do if I lose my job" anxiety.

Make a list of all your weekly/monthly obligations that exist as the first priority...then keep the remaining funds in a small kitty box for any emergency...no frill purchases...maybe a small treat for the kids once a week that they will look forward too. (my kids did)

Wish you well and take care. Steve
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Unread 02-05-2009, 10:32 PM
 
Location: SE MO
209 posts, read 335,635 times
Reputation: 132
Quote:
Originally Posted by killer2021 View Post
Until you adjust for inflation. Remember those are dollar based assets meaning they don't adjust for inflation like an asset backed security would.
You missed the point. Inflation is a future issue and not relevent if a person is currently unemployed. Having current income is relevent and having current income is the primary objective when one is unemployed.
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Unread 02-05-2009, 10:39 PM
 
Location: MI
1,069 posts, read 1,846,591 times
Reputation: 549
Well most important is to have good cable tv , you'll have a lot of time to watch, and if you had any problems before navigating your tv,dvd,cable box-worry not you will quickly become an expert.

Don't answer the phone for any reason, unless it's your immediate relatives,(like your mom or dad that you want to speak to). It's a 99.9% chance that it's a bill collector, your initial reaction is that it's a job offer, you'll quickly learn.

Most importantly....be positive and learn how to make the best of a situation, be happy, keep mind and body healthy...read a book, do some pushups...life is hills and valleys..
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