Advice for someone with uncertain job situation

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mps1
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Advice for someone with uncertain job situation

Postby mps1 » Mon Aug 13, 2012 1:59 pm

Hi,

Would appreciate your advice on my situation. I'm 31, earning $53K/year, married (wife is training for a job but not earning at the moment). Debts are $39K in student loans (<2% interest) + $3.5K car. Savings are ~$20K in an ING account + $8K in an investment account through my employer. I'm currently able to save about $1-1.5K/month.

The problem is that my employment propects may change next year. I have been told that next year (spring/summer) there will be layoffs and I may be among them, being less experienced than my coworkers. If I get laid off I am not sure how long it will take to find another job. With that in mind, what would you recommend is my best course of action? I was planning to just continue putting savings in my ING account but wanted to get some advice. Thanks

fantasma
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Re: Advice for someone with uncertain job situation

Postby fantasma » Mon Aug 13, 2012 2:13 pm

Start cutting unnecessary costs now! Look refresh your resume and start looking for another job now!

You could also look for a part time right now....
Be what you want to attract.

DoingHomework
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Re: Advice for someone with uncertain job situation

Postby DoingHomework » Mon Aug 13, 2012 2:23 pm

Do what Fantasma said:

1. Immediately start cutting out all unnecessary expenses
2. Save as much as you can and keep it in cash
3. Start sending out resumes and looking for a new job.

It is always easier to find a new job when you already have one. Don't wait to get laid off before you start looking.

Tightwad
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Re: Advice for someone with uncertain job situation

Postby Tightwad » Mon Aug 13, 2012 2:35 pm

When will your wife start bringing home a paycheck?

I agree with the others...be proactive on all fronts!

Savarel
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Re: Advice for someone with uncertain job situation

Postby Savarel » Mon Aug 13, 2012 2:53 pm

Yep. Hoard cash and look for another job.

What are the prospects of getting another job? Do you have marketable skills or are you probably looking at long unemployment?

Capo
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Re: Advice for someone with uncertain job situation

Postby Capo » Mon Aug 13, 2012 3:25 pm

DoingHomework wrote:Do what Fantasma said:

1. Immediately start cutting out all unnecessary expenses
2. Save as much as you can and keep it in cash
3. Start sending out resumes and looking for a new job.

It is always easier to find a new job when you already have one. Don't wait to get laid off before you start looking.


I agree with HW's points. I'd add #4 as "Wife starts looking for a job ASAP." I would start cutting my budget now as well, do not wait until you lose your job. Save as much as is humanly possible and keep it liquid.

Once you land a new job (hopefully before you get laid off), you can then readjust your budget. But the others are correct, you have a much better chance at finding a job if you already have one.

LjnBai
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Re: Advice for someone with uncertain job situation

Postby LjnBai » Wed Aug 15, 2012 6:44 pm

Hi, have you read Robert Kiyosaki's book? There is no such thing as job security anymore.
In the meantime of looking for a job, you should start something for your future.

mps1
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Re: Advice for someone with uncertain job situation

Postby mps1 » Fri Jul 18, 2014 8:27 pm

It's been almost 2 years since I first posted here. I figured I should post an update.

The good news is, I wasn't let go from my job (although a lot of people around me were). In fact, they offered me a full-time position and I've been there since, and even got several raises. I'm now debt-free - I paid off my loans with a chunk of my savings, which probably wasn't the smartest thing to do since the interest was so low, but I *really* wanted to be debt free. Woo hoo!

The downside is that life hasn't been all roses. Work has gotten increasingly stressful due to changes in management, and it seems the threat of getting fired/laid off is still there. I suffered several health issues over the past year and one could be potentially serious. My wife hasn't been able to find steady work, although she has been able to freelance from time to time.

I feel like I'm at a crossroads. I could take the risk and quit my job. Or I can try to continue the course and save more money. The thing is, I don't really know what I'm saving for anymore. I'm not saving so much that I feel I have a lot of options. Buying a home seems like the next logical step but I really have no interest in living here long-term. I don't think we're ready to have kids either. What I fantasize about doing is quitting and traveling around the world, but that would wreck the savings I have and I'd have no job when I get back. I'm not even sure what I want to do with the rest of my life.

I guess this is more than just a personal finance issue, sorry :)

RayinPenn
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Re: Advice for someone with uncertain job situation

Postby RayinPenn » Sat Jul 19, 2014 3:16 am

I am not sure what you do for a living but,
1. Pretty much anyone who works for a corporation and is non union faces the prospect of being laid off every year. My firm has merged 3 times in the last 20 years and I never knew for certain if I would survive the associated cuts. I learned to distinguish myself from the other workers by developing additional skills. They rarely fire the rain maker.

Ask yourself do you want to deal with the threat of layoffs for another 20 years. Perhaps you should think about developing your own business. Of course there would still be risk but you might be more the master of your own destiny...
RayinPenn

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jpham540
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Re: Advice for someone with uncertain job situation

Postby jpham540 » Sat Jul 19, 2014 9:03 am

You know the best advice I ever got is “the best time to look for a job is when you have one already.” I have done several jobs like that and it seem like it work out for me. That way you know you still have your old job but you can always look for better opportunities. Just don’t let your employers know :D , from this day I still look even though I have a good job, but I have turn down many in the past.
Since it seem like you paid off most of your debt, how does your retirement outlook?
Rule of thumb normally is:
1) Contribute to 401k up to match.
2) Max Roth/Ira.
3) Max 401k.
4) Invest in taxable, I like vanguard index funds.
Hope this help.
http://www.theexpatinvestor.com/

Tax-Volunteer-Mike
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Re: Advice for someone with uncertain job situation

Postby Tax-Volunteer-Mike » Sat Jul 19, 2014 10:55 am

What I fantasize about doing is quitting and traveling around the world,...


The best way I know how to do that is to control spending and build wealth in retirement accounts to the point that you could live for 1 year off of no more than 4% of the value. Keep the funds invested and it will keep up with inflation and it could sustain you indefinitely.

When I was still in college I was working for a small business and the owner gave me the advice: "Go into business for yourself as you can make money that far exceeds being employed." ( I have not done this yet as I consider it a big risk and I'm the sole bread winner. Maybe after the investments are big enough that we can live off of them.)

smithson1
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Re: Advice for someone with uncertain job situation

Postby smithson1 » Sat Jul 19, 2014 2:36 pm

In reply to jpham540, can you elaborate on your statement about always looking for better opportunities. Do you pump out resumes every week or more strategically?

moneysma
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Re: Advice for someone with uncertain job situation

Postby moneysma » Mon Jul 21, 2014 6:21 pm

I got laid off from my job last September. I had no clue it was coming. For what it's worth, I would save everything you can in a savings account. Don't worry that you are earning around 1%. The money is safe and you need all the money you can get your hands on. Ideally you won't need it, but it's better to have it there than have to reply on credit cards to get by. That will just make a stressful situation much worse.

On top of that, review your budget. Find ways to cut back now. Stop eating out so much. Negotiate your cable/internet bills. See if you can lower your insurance premiums. I'm not suggesting you cut out all of the fun out of your life, but you should get used to living a more basic life. Again, it's better to be safe than sorry.

I was lucky that we had a nice emergency fund set up already. Within my first few days we started looking for ways to cut expenses. It helped us get through the stressful situation intact. Losing a job is stressful enough. No need to add money worries to it as well.
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DoingHomework
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Re: Advice for someone with uncertain job situation

Postby DoingHomework » Wed Jul 23, 2014 2:33 am

jpham540 wrote:You know the best advice I ever got is “the best time to look for a job is when you have one already.” I have done several jobs like that and it seem like it work out for me.


I totally agree. Even though it shouldn't be this way, look for a job while you have one


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