DH may lose job in 3 or 4 mths. WWYD to plan?

[calendula]

DH's company is not looking good. It's a v.small business and if they don't get new clients in the next month they will fold. They say they are OK until the end of the year but I don't think they'll last that long. But for argument's sake let's say I have 3 or 4 months if the worst were to happen.

We are a family of 4 reliant on DHs income. I am a SAHM.

I don't know how much detail to give out here but are there any pieces of advice or suggestions that would be good for anyone to follow in this situation?

My general plan is to cut back as much as poss and bank any surplus money from this. If we can come up with another months mortgage in the form of savings so much the better.

With that in mind I have cut down automatic transfers to college funds to the bare min. I am going to really scrimp at the grocery store, and just overall be very aware of what we spend. We haven't been paying enough attention the past few months (Summer=lots of outdoor projects which have cost quite a bit) so I am sure I can save a few hundred dollars a month.

We have an emergency fund but it's only funded to about 3 months.
But I am looking for any other ideas of how to plan for the worst.
TIA

[HydeParkB]

I would assume that he will be eligible for unemployment. I would research how to apply in your state and be ready to do that. You may want to research any other assistance.

I would try to research what your options would be for health insurance. (I know about COBRA in the event one is laid off, but I don't know about what happens if a company just folds.)

I would try to cut everything to the bone - no cable, no cell beyond what is really necessary, review everything from magazines to memberships.

Do you have things you could or want to sell. Four months from no will not be prime garage sale time. Maybe take the opportunity in the next couple months to see about ways you can earn money if DH is out of work.

It sounds like you own your home. If you have a mortgage that could be refinanced to a lower level, now would be the time - while you still have good income and good credit. (We refi'ed to right before my DH became a SAHD). Of course, that is dependent on the value of your home and what banks are willing to do these days.

[lalaland42]

All that plus revamp DH's and your own resume. It takes a little while to get your resume to the point it is ready to send out and having it done before he is laid off will help. Join Linkedin and connect with as many people as possible because IME, connections are the way to get interviews.

Do two detailed budgets, one barebones budget and one with things like new clothes and eating out factored in.

Discuss all the possible combinations for if your DH isn't hired right away. When I was laid off, DH was a grad student and we talked about both of us finding jobs and what that would mean for childcare. Eventually we decided either I would find a job with no travel involved so he could SAH and finish his PhD or he would find a job and I would SAH. He found the job first.

Above all else, be flexible. and GL.

[1growingsprout]

DH needs to start looking for a job NOW and you need to start looking for a job NOW, if you have to work opposite shifts for a while then thats what you need to do. Unemployment is notorious for being slow to pay in our state, and companies are fighting it right and left...

i would also gather the info for family assistance and see if you will qualify. Also take inventory of what you have in the house, pantry etc.... When my DH lost his job we cut grocery spending to bare minimum and I was so thankful we had a huge stockpile. I also took on extra daycare clients.

[Sarah W]

Originally Posted by lalaland42

All that plus revamp DH's and your own resume. It takes a little while to get your resume to the point it is ready to send out and having it done before he is laid off will help. Join Linkedin and connect with as many people as possible because IME, connections are the way to get interviews.

This was what I was going to say. Start looking now, just in case.

Others have made great points, such as tightening up on non-essentials and sticking to a budget.

I know you said you are a SAHM, but is that negotiable? Even if you took something part time, while DH was home with the kids it could be a tremendous help. Even if you brought in $200 a month or so, that's almost an extra $1k, depending on when he's let go (if he is). It might make the transition easier and doesn't have to be permanent.

[Warpedmom]

If I new it was coming and almost inevitable, I would cut out sending money to college funds and put it all into savings. Giving that the months you are going to get hit are not high produce months for cheap for produce and prices tend to go up, I would make a 3 month menu plan of things that you all will eat so that you are not wasting, I would then start buying food now that would make that menu possible (all on sale). If you can cut your grocery bill later by adding a little bit at a time now, you will come out ahead. Also research how to make your own cleaners. I now make my own laundry soap, dishsoap and cleaning supplies not to be green but because we have been ultra broke. This Summer hit us hard with two in daycare, two birthdays, our mortgage went up and my husband's car died. If I would have prepared our groceries better, we would have been better off. I was lucky in that my freezer was stocked and is just now getting to the very bottom. We made it through but barely. Cut out any and all extra's (eating out, unessential shopping) now so you are not hit so hard in 3 to 4 months. Try to start asking yourself if this is a true need or a want. If it is a want or you can go with out it for 6 months, then don't get it.

If you have kids, buy winter jackets at thrift stores now as they will be gone in a month or so and you will be paying higher prices for jackets. If they need winter boots, go a size up and buy them now during hte back to school shopping season.

[Marisol]

This thread has some excellent suggestions:
http://www.mothering.com/discussions....php?t=1030924

Also, if you use a winter heating method such as propane, oil or wood, make sure you've stocked in the season's supply of that before your income evaporates.

[Norasmomma]

Originally Posted by 1growingsprout

DH needs to start looking for a job NOW and you need to start looking for a job NOW, if you have to work opposite shifts for a while then thats what you need to do. Unemployment is notorious for being slow to pay in our state, and companies are fighting it right and left...

i would also gather the info for family assistance and see if you will qualify. Also take inventory of what you have in the house, pantry etc.... When my DH lost his job we cut grocery spending to bare minimum and I was so thankful we had a huge stockpile. I also took on extra daycare clients.

Yeah I also would drop the additions to college funds, I know that's not what you want to do, but that's the future this is now. I'd be putting that money into my savings or emergency fund. I also would be starting a stockpile and not cutting to the bare minimum on groceries-for now.

We have had lean times and I have learned that it is best to make a stockpile to feed the family. I would be learning about couponing and sales shopping(hotcouponworld is great for that). Personally I'd be thinking of getting a job myself to help cover the bases. I'd be looking into different social services just in case.

For me my biggest thing is food. I have a large stockpile and yes we have had to live on it a few times. The worst was when DD was a little baby, I remember having to just get super creative and make food out of what little we had. That sucked. Since then I have made a large stockpile of pretty much everything and anything needed for our household. I've got dish soap, laundry soap, diapers, health and beauty supplies, lots of food and a freezer full of meat, milk and other stuff. We are prepared if worse comes to worse. Plus most of it was bought for less money than I would have spent before.

[siobhang]

FYI - if the company goes bankrupt, your cobra disappears. COBRA is contingent on the company still having the same account with the same insurance company (I worked for a company that went bankrupt and lost my COBRA as a result).

Also unemployment gets tricky if the company is bankrupt. When my company went bankrupt, I had a dispute with the labor dept over my eligibility and basically found out that b/c my company was gone, the state was paying the unemployment and they were desperate to get rid of as many people as possible, so were fighting every claim they could (this was in NYS during the dot com bust). I ended up losing my unemployment two months early.

Your dh should jump ship as soon as he can. Does he have any opportunities for freelance or temp work? Do you? Tell everyone you know you and he are looking for something new.

ETA: more advice

Also, he should take all his vacation and PTO now. Depending on the state, vacation is not "paid out" if the company goes bankrupt (my "vacation pay" was a laptop). Also, he should make sure he has any expenses reimbursed asap, and DO NOT LEND THEM MONEY - i.e. fronting travel or other expenses.

And he should keep a close eye on his paychecks and make sure he is being paid. Employees back wages are the first to be paid in bankruptcy court, but you cannot get blood from a stone.

We nearly didn't get paid for our last pay period - AND the big bosses didn't pay for three months of health care premiums (which they took out of our paychecks, thank you very much, but didn't pay) and in that case, we would have been on the hook for all care given to us by the insurance for those three months (we finally forced them to pay those premiums by holding a check hostage - yeah, it got THAT bad).

The biggest thing is to get out now. Sinking ship and all that.

[goldfishkate]

Don't forget to get yourself, husband and kids to the doctor, eye doctor or dentist before you could possibly lose benefits. Refill those prescriptions too.

[nichole]

Originally Posted by goldfishkate

Don't forget to get yourself, husband and kids to the doctor, eye doctor or dentist before you could possibly lose benefits. Refill those prescriptions too.

Ooh that's a good one. I agree with not contributing to the college fund for now.

I like the idea of stockpiling. I have been doing this. For example, every week my husband buys a six pack of peanut butter crackers for $4 to take to work. Well when they are marked down to $2 I buy several packs, and if I have coupons all the better. I love hotcouponworld!

Depending on how worried you are, getting a part time job and cutting back on cable, cell phones, etc would be a good idea.

My husband got a good new job by using a headhunter.

[Mama2Bug]

If you have pets, don't forget to stock up on food/supplies for them. If you end up needing assistance of any type, pet supplies are very, very rarely included. Food pantries occasionally have some, but WIC, food stamps etc. don't help with that kind of thing. They also won't help with things like household cleaners, tp, toiletries, personal care products or OTC medications (like pain reliever or vitamins).

[leavemealone]

I would do a lot of what others are suggesting, but I would also start cutting things now just in case. Do you need a cell phone? Can you lower the plan and just not use it as much? What about cable? Home phone? That kind of thing. I would also be sure to have prescription medicine on hand, visits to the dr/dentist/etc and stock up on a few non perishable groceries. I wouldn't go nuts, but I would start now just in case. If you don't end up needing it, then you won't have to spend the money later.

Also, I would honestly start networking now. Not just for your DH, but also for you. If you have a talent that others can use (music lessons, sewing, scrapbooking, whatever), start letting others know you will be available. Even if your DH doesn't lose his job, it might be worth it for you to pick up a little extra money anyway to put away in the emergency fund. You can still stay a home and make a little extra money.