Disclaimer: I am not a lawyer. I am
only publishing my interpretation of my situation. You should seek your
own legal representation for your own particular
situation. Do not rely on my
opinions or statements for your own purposes as state
and local law varies as do individual circumstances.
I was laid off last month. Fortunately, my ex-employer
provided me with a hefty severance package. It was a lump-sum
payment which I received the last of May. It was a very generous
severance package. Of course, I can
already
see how fast it will disappear. Therefore, I have been
making changes to my lifestyle and my expenses. For instance, I
ate Raman Noodles today. I have not done that since college
maybe twenty years ago. They are not that good compared to
eating burgers and steaks and such, but they are enough.
A budget is something
that I have not sat down and put on paper or in a spreadsheet. I
doubt I do that although it is a good idea. I just do not think
that I have the patience for it. I am, though, working on
lifestyle changes and cutting expenses. I am cancelling
memberships to things such as AOL which I have been paying for
since I started using email back in the early 90's. I will lose
some pictures and some web pages, but I will still get to use
the same email address that I have had since my very first
email. The air conditioning is not set as cool as it usually has
been. I am not eating out... as much. I am not going to buy a
new iPhone (just as long as my current phone keeps working). I
am going to pay my car insurance in installment payments whereas
I usually paid it in full every six months. I am not driving as
much as I have in the past... and the list goes on and on and
on.
The prevailing themes are
to not make any purchases that I do not have to make and to
spread out payments on what I do have for as long as I can
spread them out. For example, I usually payoff my American
Express credit card in full each month. This month, I will be
paying only the minimum. Plus, I will be using up the rest of
the credit on that card (at least as long as they have not
cancelled the card). While revolving a balance on a credit card
is usually not a recommended practice, it is a very recommended
option when faced with a slowly declining and non-replenishing
checking account balance.
I am working on another
theme - make more money - but that is slow going at the moment.
I am looking for work (not a job) doing consulting work similar
to what I have done for the past eight years. I am confident
that I can make money doing this, but it takes time to promote
myself. The BIG question is whether or not my severance package
payout will last me through the promotion time and until I
actually get paid for doing some consulting work.
If you still have a job,
hang on to it; but prepare for the worst. Not everyone who gets
laid off gets a severance package. I count myself extremely
lucky. With no severance package, you are left with credit and
savings to keep you fed and sheltered until you get your next
job. Stash away some cash while you can so that you will have it
when you need it. Keep your credit balances low while you have a
source of income so that you can use that credit for food and
shelter when you do not have a source of income. Plan ahead.
|
