Day 115 Surviving a Lay Off PT 2

Now that we've briefly reviewed some of the very real emotions you might go through because of a lay off, it is time to get practical.

In the most basic of realities, a lay off means a reduction, perhaps drastic, in income.  You may qualify for unemployment insurance based on a number of factors, but the truth is that the payment(s) you receive from this source will not equal what you earned at your job and it may not be as timely as you'd like.

If you are fortunate, there might be a severance package available to you. Unemployment takes this into account and will delay any payments to you based on their internal calculations.


Being older, health insurance comes into play as well. Perhaps you will qualify for federal financial assistance; perhaps you have a spouse who can add you to their plan at the appropriate time; and perhaps, you have to purchase COBRA coverage.  All these options will reduce your decreased income further.

It helps to think of your financial status in three categories. Take a piece of paper and make three columns. Label one "Save," a second, "Earn," and a final category of "Give."

Therefor, it is vitally important that you take a look at all your income and have a good handle on how much you are actually earning.  Then look at your essential expenses such as housing, car payment, gasoline, utilities, food and internet.  Know how much each is costing you.

Then look at the extra expenditures you have. These would include credit cards, entertainment, dining out and things of that nature. At this time it is essential to have a true picture of all your expenses and see when you stand against your income.  If you come up short, then it is time to start adjusting so that you have a positive balance when essentials are paid. 

If you have credit cards, you can't ignore paying them. It might be difficult to pay the minimum monthly payment, however. Call each card company and see what arrangements you can make, arrangements that won't impact your credit worthiness.  If you are successful with making a new arrangement, place the difference between the old and the new in the "Save" column.  For instance, if you have a monthly bill to Discover that is $100 and you create a new arrangement where you pay them $40, then put the difference, $60 in the "Save" column.

If you are used to having a $4.00 coffee every morning, cut down the number of times you get that coffee and put the savings in your "Save" column. Movies and dinner once a week?  That's an easy $50 if not more.  Rent a movie from Red Box for $1.50 and put $38.50 into the "Save."

One of the ways I am cutting expenses is by not eating out so often.  I've prepared a planned menu for C and I and when I adhere to it, I easily save $60 a week.  C really enjoys eating fried rice.  Recently, his brother taught him how to make his own.  At a cost of approximately $9, we are easily saving $7 if not more.

Need additional training to become more valuable in the work force? Be sure to visit your local librarian. S/he will be able to point you in the direction of free classes to pump up your skills in all sorts of areas like accounting, payroll, data entry, warehousing, Microsoft Office titles like Excel and Powerpoint.  You will be a more viable candidate for a job, and you will save hundreds of dollars for the education.

In the "Earn" column place all your current sources of income and the amount you get from each source.  Then, figure out a way that you can earn an additional $1 a day (average) - an extra $30 a month.  This may come in the form of a little side job such as mowing a neighbor's lawn or walking their dogs.  Some people have offered to clean out garages for $10 and then haul away smaller items the owner no long wants.  Some have done this and taken those same items and sold them on E-bay or Craig's List or perhaps in their own garage sales.  

Many a lucrative side business has been uncovered this way, and some of them turned into full time, self-owned businesses like lunch carts, lawn maintenance and junk removal. Many of these people uncovered something they truly loved because they were forced to get a little creative.

Other ways to earn a little extra include user testing and mystery shopping.  A few years ago, I mystery shopped for Starbucks.  It didn't pay a lot, $5 - but I got my coffee reimbursed and made a little extra. It also got me out of the house and exploring my neck of the woods. Overall, it was a winning combination.

In your "Give" column think of the organizations you give money to.  Now would be a great time to give of yourself rather than your wallet.  Animal shelters, soup kitchens, hospitals all rely on volunteer support in addition to financial donations. Just today, I received notification that a city run garden needs volunteers, green thumbs or not, to help two hours a week with planting, mulching and weeding.

Of course, this is a really simple way of looking at your current financial situation, and one size doesn't fit all.  However, this was a different way of  viewing personal finances during tough times that was presented to us at a special seminar and that I found useful. I hope you find my take-aways useful as well.

Here's to filling all those columns with things that will make your budget work.