Illustration by Polly Becker
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Web Exclusive…
Financial Survival Tips for the Newly Laid Off
By Sacha E. Cohen, January-February 2004
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In the weeks after you've lost a job, you'll have to take a cold,
hard look at your finances. What can you afford to cut from your budget? How
long will your savings last? Can you refinance your home? Certified financial
planner Kay Shirley says you need to determine your bare minimum cost of living
(rent or mortgage, health insurance, transportation, utilities, food, etc.),
and discipline yourself to spend no more than that amount. And if you have
severance pay, use it as your transition to your next job, or pay off your
consumer debt.
Anything that is not included in your definition of "bare minimum cost
of living" should be on the chopping block. Here are some additional
recommendations from Shirley for how to pinch pennies:
- Don't eat out as often.
- Don't buy clothes, except what is necessary for employment
opportunities.
- Re-adjust your home thermostat to lower utility bills.
- Re-assess your need for long distance telephone service and/or cellular
services. Consider the purchase of low-cost, pre-paid long distance calling
cards.
- Plan days so that you can consolidate chores into fewer automobile
trips—the cost of gasoline is ever rising.
- Start doing your own yard work, car washing, house cleaning, etc.
- At holidays and special occasions, instead of an expensive gift, offer
"free" gift certificates for baby or pet sitting, cutting grass,
cooking a meal, baking cookies, etc.
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