What would you guys do if you got laid off next month?

[Anonymous]

I'm trying to keep my eye on the prize taking good financial steps so I can buy a house in 2 years. This is ultimately what led me here. I'm great at saving money, the job market I'm in however is really volitile. I'm a Senior Web Designer at a mens fashion retailer, there was just a merger a few weeks ago, and nobody else seems to see the clear transfer of operational control with the other company.

So what would you guys do if you got laid off next month?

Would you ask for CLI on your cards now?

Or reduce the CL on your cards?

Get more cards?

Apply for a personal loan?

Or payoff any debts now?

[youdontkillmoney]

pay off debt to reduce financial pressure/stress

[Kenny]

Pay off debts now.. completely. Ask for CLIs if they aren't HP and just in general tend to your affairs the best way you can to set yourself up for success if the worse should happen.

[CreditDunce]

Pay off debts.  Don't make any new big purchases.  If you are willing to move to a new city assuming the worst, don't sign long lease extensions.  You might want to consider going month to month.

No more CC's.  At least none that require spend for a bonus.  It may cause you to buy stuff you don't need get the bonus.  If you don't have a low interest CC, I might consider getting one from a CU.  Or getting a CC with a 0% intro rate.  But I wouldn't activate the card right now. 

I don't think CLI's are important if we are talking about reward cards / high interest rates.   High interest rate CC's with high limits can get you in trouble quickly.

Get any medical/dental care taken care of now assuming you have good insurance.

Do some networking just in case.  Maybe try to find a side gig (assuming your company allows side gigs).   You are fortunate to be in a field that allows you to do contracting work from your home.

Also, relax.  You are in a good field.  The merged company will probably need your services.  If not, you will be able to find a new job quickly.

[jamie123]

I've been there in the past and disagree with some of the other posters.

CASH IS KING!

You should be building a nestegg of emergency cash in a credit union or savings account somewhere for just this reason. This should be a place that you can readily have access to the cash in an emergency and pay your bills if you lose your job. As this account grows and when you feel that 2 months?, 3 months? or 4 months of emergency funds is enough, take the excess and invest it where you can get better returns but might not have as easy access to it.

If you lose your job:

1. Pay only minimums on your credit cards. (Now is not the time to worry about your credit scores. Nobody will lend you money as an unemployed person anyway!)

2. Charge as many everyday expenses as possible, groceries, gas and utilities.

3.Stop ALL uneeded spending! No more restaurants, Starbucks and entertainment.

You want to husband your cash and use your credit. You can live your "almost" normal life for much longer using your credit now and only paying minimums on your cards. Once you run out of cash you are in a world of hurt and this plan allows your cash to last the longest.

[Anonymous]

I don't think this will happen immediately. Maybe 4-6 months actually. We are approaching XMAS season, and starting from scratch with a new direct team would be moronic and drive the business into the ground. They historically do layoffs January-March, which wouldn't be terrible, I'm miserable anyways but the pay is good enough to not quit without a job lined up like I would have in my earlier years...problem is I've been worked into the ground and am too exhausted every day to work on my portfolio. If it happened in March it wouldn't be bad, I have a spree planned in Feb, and I wanted to get a personal 5k loan then too to update my computer hard wear and software anyways. I am a pro at the ups and downs of freelancing, but I've wasn't saving for a house before before so maintaining  what I 've got will be an extra challenge.

[CreditDunce]

It is tough putting aside extra when you are putting in so many hours.  It is too easy to trade paying more to save time.

When I first read your post, I thought they would be looking to do any moves (if they do anything) around x-mas or just after the new year.  But there is also a good chance any job losses will be minor.  It is getting harder to find good, experienced IT staff.  They may want to keep the team they have in place. 

Still, I think it is important to start looking around just in case they decide to offshore everything, etc.   It doesn't have to be big, but it is important to be prepared.

If you are saving for a house, that is perfect.  Just keep saving for the house.  It will give you a bigger emergency fund in case you need it.  If it turns out you don't need, then you have a down payment ready for your new house.

Good luck.

[Anonymous]

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@Anonymous wrote:

I don't think this will happen immediately. Maybe 4-6 months actually. We are approaching XMAS season, and starting from scratch with a new direct team would be moronic and drive the business into the ground. They historically do layoffs January-March, which wouldn't be terrible, I'm miserable anyways but the pay is good enough to not quit without a job lined up like I would have in my earlier years...problem is I've been worked into the ground and am too exhausted every day to work on my portfolio. If it happened in March it wouldn't be bad, I have a spree planned in Feb, and I wanted to get a personal 5k loan then too to update my computer hard wear and software anyways. I am a pro at the ups and downs of freelancing, but I've wasn't saving for a house before before so maintaining  what I 've got will be an extra challenge.

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I know you asked for some advice on the financial areas but I could not let this one comment slip by.  I know you are tired but you need to find time to invest in yourself.  You have a head start in that you know this is coming.  Work on that portfolio so when the time comes, you are ready to go.  Think of it this way - the money you saved can be used for vacation, a new car, a new home because you have a new employment opportunity already lined up.

[Anonymous]

Thanks Mixem, I did start working on my new website portfolio almost immediatly after this thread. Along with a few other things my mantra right now is Invest In Yourself. Why give the best part of yourself to people that are just working you into the ground, and might fire you. Probably will. I don't really care anymore. They started this puppet show of demoting people a few weeks ago. My boss. One of my immediate coworkers was given an offer letter from the HR director for position 2 steps down from where she is now. When she asked about it everyone pretended like it didn't happen. Somebody changed there mind or spilt the beans too early. I'm just going to continue to do what i have been. Save for a House. Start saving for retirement. Get my portfolio done. 

[Anonymous]

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@jamie123 wrote:

I've been there in the past and disagree with some of the other posters.

CASH IS KING!

You should be building a nestegg of emergency cash in a credit union or savings account somewhere for just this reason. This should be a place that you can readily have access to the cash in an emergency and pay your bills if you lose your job. As this account grows and when you feel that 2 months?, 3 months? or 4 months of emergency funds is enough, take the excess and invest it where you can get better returns but might not have as easy access to it.

If you lose your job:

1. Pay only minimums on your credit cards. (Now is not the time to worry about your credit scores. Nobody will lend you money as an unemployed person anyway!)

2. Charge as many everyday expenses as possible, groceries, gas and utilities.

3.Stop ALL uneeded spending! No more restaurants, Starbucks and entertainment.

You want to husband your cash and use your credit. You can live your "almost" normal life for much longer using your credit now and only paying minimums on your cards. Once you run out of cash you are in a world of hurt and this plan allows your cash to last the longest.

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I don't see why one wouldn't be doing this anyway.