I recently got cut and I am in a 'savings mode' right now - I've cancelled my cable, downgraded my cell phone plan, stopped eating out (almost completely) - I'll continue to manage my finances aggressively until I find a new job. I wanted to see if someone would like to chime in with ideas about potential savings tactics and strategies as it relates to laid off people.
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Just a quick comment to the poster who advised not to file for UI benefits until severance and savings exhaust - please check your local (state) regulations about unemployment benefits. Most states have an eligibility or qualifying period; if you wait until severance or savings is exhausted, you could find yourself i the unfortunate position of no longer having "earnings" to qualify for the benefits. Agreed with the person who suggested having 6 months to 1 year of savings but that unfortunately isn't always possible for different reasons. I know emotionally it is difficult. Let's do our best to support each other and not judge why someone is or isn't in a good situation. Good luck to all.
RE: Unemployment benefits. It depends on your state. In my case, I was able to get it with my severance package and added it to my savings. I would have missed out on some of the money if I had waited. There were rules/limitations related to employment dates, etc. Other states had opposite rules where you could not get unemp benefits until after you exhausted your severance package. Every state is different. Check the rules in your state as soon as you get cut!
I am the OP, thank you all
Best advice already offered (emergency fund). Next: don't sign-up for unemployment benefits until severance and liquid savings exhausted.
Oh, and Walmart family plan for mobile, cheapest around and it works fine in our area. And we cook in almost all of our meals, eating out is way to expensive and you dont know where the food comes from. Eat in, eat healthy, and eat with your family.
If your taking these 'drastic' cuts only 'after' you get laid off then your not very smart... and probably deserved it. I hope you didnt work in finance.
You should always have at least 6 months to a year in 'cash' available as an emergency fund to fall back on if you get laid off. Cable is so 90s, cut the cord and get a Comcast business plan, costs around 70 bucks in my area, more speed then we can use, 2 adults a mid teen and a tween. Netflix, Amazon and Hulu are the only subscriptions we use, and just cut Hulu because its to slow.
I did not get cut..but I always keep a plane of what I can do without, then eventually what I should get rid of that has any vale, and in what order (hardest to replace last). I try to keep 1-1.5 years of expenses in the bank as well--I've been laid off before and know how it is.
You're doing the first things I would do. Next I'd look at what I could sell (toys-boats, motorcycles etc), then can I get rid of my car, and finally my house and where I would live next. In between that if I couldn't find full time 'real' employment, what I can do to get by--wait tables, tend bar, construction, side/odd jobs. And start networking like nobody's business.
Good luck--it sucks.