Downsize your costs in 4 weeks
Ablang
By Lora Shinn • Bankrate.com
Highlights
* Layoffs can mean going from two incomes to one overnight.
* Reacting quickly and staying proactive are key to economic
survival.
* If small savings steps don't work, you may need to make bigger
moves.
If your family -- like so many others -- just received word of a
sudden layoff, it's important to take stock of your situation and
immediately make changes.
"All progress starts by telling the truth," says Louis Barajas, a
Santa Fe Springs, Calif.-based financial adviser who primarily
counsels working families.
Sit down as a family and discuss the job loss. Express feelings of
anger, sadness or worry. Once you've done so, get down to the business
of saving money.
Here's how to right-size your financial life in one month.
Week 1: React quickly
It's important to react quickly once you've been laid off. Denial can
be your undoing, says Barajas, author of the book "Overworked,
Overwhelmed, and Underpaid."
He's seen clients tell themselves, "I'll find a job in a month."
Meanwhile, the family doesn't cut expenses promptly as the shell-
shocked worker goes through the job-hunting motions.
"They're walking zombies," he says of laid-off clients.
That's a recipe for disaster, particularly as family savings dwindle
or bills start to go unpaid.
“I don't care if you've never cracked a cookbook in your life, you can
eat for pennies on the dollar at home.”
Instead, take a proactive approach. Apply for unemployment right away,
says Steve Economides, who, along with his wife Annette, wrote
"America's Cheapest Family Gets You Right on the Money."
When Steve was laid off, he waited a week and a half to apply for
unemployment -- only to discover that unemployment isn't retroactive.
"It starts the day you apply," he says.
Week 2: Adjust the family budget
In the second week, Barajas suggests creating a financial plan. Write
out the next three month's unique expenses -- everything from regular
monthly bills (e.g., mortgage, utilities, auto expenses) to occasional
payments (e.g., annual property tax and insurance bills, school
supplies).
Once you've listed these expenses, immediately drop the nonessentials,
such as music lessons or gifts.
The Economideses -- who are raising five children while dispensing
frugal tips from their Web site -- suggest tallying what you have to
spend in food, recreation and clothing. To pay for these expenses, use
cash instead of relying on cards or checks.
"If you have money in your hand, you'll spend less," Annette
Economides says.
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Creativity makes the money last, she says. For example, a family that
limits itself to spending $15 per week on entertainment and dining out
might limit itself to a $1 bargain movie, dinner at an inexpensive all-
you-can-eat Chinese buffet, or hot chocolate and dessert at a coffee
shop.
Unemployment could last a few weeks -- or several months. Barajas
suggests creating a list of financial resources you can tap in an
emergency. List any credit, equity, savings or retirement funds on
which you can draw.
Week 3: Work inside the home
While the laid-off spouse is undoubtedly trolling job Web sites, it's
imperative that he or she also take on a new daytime job -- lifestyle
change expert.
"Any good business always has an accounting department, and someone's
watching the money," Steve Economides says.
The stay-at-home spouse can help track spending, set a budget, clip
coupons or watch for grocery sales, and cook.
"I don't care if you've never cracked a cookbook in your life, you can
eat for pennies on the dollar at home," Annette Economides says.
An easy dinner like barbecue chicken, baked potatoes and frozen green
beans can feed a family of four for $3 per person. That's a big
savings over $10 entrees in a restaurant.
The thrifty duo also suggest the laid-off spouse get on the phone and
negotiate with those who must be paid monthly, including credit card
and insurance companies.
Week 4: Consider bigger changes
Sometimes, cutting corners and making smaller adjustments don't add up
quickly enough to make an immediate difference, the Economides say. If
there's a $1,000 budget gap at the end of the month, small steps won't
scale the mountain of expenses.
In such situations, you may have to make bigger changes to keep the
family afloat, Annette Economides says.
"You've got to survive," she says. "But you want to survive with your
family intact. So you've got to make changes."
The Economides suggest renting a room, such as an unused guest
bedroom, a basement room or a child's room (if two kids can bunk in
one room). Depending on your location, rooms could bring in an extra
$200 to $600 per month.
Establish criteria, screen prospective tenants and set ground rules,
Steve Economides says. With careful planning, a rental can make a big
dent in a monthly mortgage payment.
To cut more deeply into monthly expenses, sell extra vehicles and go
from a two-car family to a one-car family, the Economides suggest.
Learn local bus routes or negotiate car use with your partner.
Maintenance and car insurance can cost hundreds every month, Annette
Economides says.
Making ends meet may mean putting away pride and finding a job that
pays less, but still covers the essentials. A few weeks ago, Barajas
visited a restaurant. His waiter was an ex-mortgage broker.
According to Barajas, he simply said, "I gotta do what I gotta do to
feed my kids."
Rod Speed
> Downsize your costs in 4 weeks
> By Lora Shinn � Bankrate.com
> Highlights
> * Layoffs can mean going from two incomes to one overnight.
Must be one of those rocket scientist eejuts.
> * Reacting quickly and staying proactive are key to economic survival.
Nope, most obviously for those who can get another job easily.
> * If small savings steps don't work, you may need to make bigger moves.
Must be one of those rocket scientist eejuts.
> If your family -- like so many others -- just received word of a
> sudden layoff, it's important to take stock of your situation and
> immediately make changes.
Nope, most obviously with those who can get another job easily.
> "All progress starts by telling the truth,"
Mindlessly silly. Plenty of progress starts in other ways.
> says Louis Barajas, a Santa Fe Springs, Calif.-based
> financial adviser who primarily counsels working families.
Who clearly doesnt have a fucking clue and so is
the last person who should be 'counselling' anyone.
> Sit down as a family and discuss the job loss.
> Express feelings of anger, sadness or worry.
Wota fucking wanker.
> Once you've done so, get down to the business of saving money.
Makes a hell of a lot more sense to get another job instead.
> Here's how to right-size your financial life in one month.
Wont work for hordes.
> Week 1: React quickly
> It's important to react quickly once you've been laid off.
Even sillier. That depends entirey on how easy it is to get another job.
Anyone with even half a clue should be able to handle
times between jobs because they have made adequate
provision for what is absolutely inevitable for almost all of us.
> Denial can be your undoing,
And it may not be too.
> says Barajas, author of the book "Overworked, Overwhelmed, and Underpaid."
> He's seen clients tell themselves, "I'll find a job in a month."
And plenty of them do too.
> Meanwhile, the family doesn't cut expenses promptly as the
> shell-shocked worker goes through the job-hunting motions.
And that works fine when they do get another job.
> "They're walking zombies," he says of laid-off clients.
Hordes of them are nothing like that.
> That's a recipe for disaster, particularly as family savings dwindle
Thats no disaster if you do get another job.
> or bills start to go unpaid.
Only fools are that stupid.
> �I don't care if you've never cracked a cookbook in
> your life, you can eat for pennies on the dollar at home.�
Yes, but whether it makes any sense to do that is another matter entirely.
> Instead, take a proactive approach. Apply for unemployment right away,
No thanks. Some of us make our own provision for time between jobs.
> says Steve Economides, who, along with his wife Annette, wrote
> "America's Cheapest Family Gets You Right on the Money."
Who is clearly a pathological liar.
> When Steve was laid off, he waited a week and a half to apply for
> unemployment -- only to discover that unemployment isn't retroactive.
Irrelevant if you do get another job quickly.
> "It starts the day you apply," he says.
That varys with the country.
> Week 2: Adjust the family budget
> In the second week, Barajas suggests creating a financial plan.
And I suggest he takes his suggestion and shoves it where the sun dont shine.
> Write out the next three month's unique expenses -- everything from
> regular monthly bills (e.g., mortgage, utilities, auto expenses) to occasional
> payments (e.g., annual property tax and insurance bills, school supplies).
Cmplete waste of time if you are likely to get another job quickly and plenty will.
> Once you've listed these expenses, immediately drop the nonessentials,
> such as music lessons or gifts.
Completely stupid if you end up with another job quickly, and thats what happens with plenty.
> The Economideses -- who are raising five children
> while dispensing frugal tips from their Web site --
It would have made a hell of a lot more sense to not have so many kids.
> suggest tallying what you have to spend in food, recreation and clothing.
You dont have to spend any of that.
> To pay for these expenses, use cash instead of relying on cards or checks.
Mindlessly stupid to do without the rewards when you are short of income.
> "If you have money in your hand, you'll spend less," Annette Economides says.
More fool that stupid cow. I dont.
> Creativity makes the money last, she says.
More fool that stupid cow.
> For example, a family that limits itself to spending $15 per week
> on entertainment and dining out might limit itself to a $1 bargain
> movie, dinner at an inexpensive all-you-can-eat Chinese buffet,
> or hot chocolate and dessert at a coffee shop.
Makes a hell of a lot more sense to do none of that unless its affordable.
> Unemployment could last a few weeks -- or several months.
Must be one of those rocket scientist eejuts.
> Barajas suggests creating a list of financial resources
> you can tap in an emergency. List any credit, equity,
> savings or retirement funds on which you can draw.
Dont need to list them. Anyone who has made sensible
provision for time between jobs knows that stuff already.
> Week 3: Work inside the home
Makes a hell of a lot more sense to look for more work instead for most.
> While the laid-off spouse is undoubtedly trolling job
> Web sites, it's imperative that he or she also take
> on a new daytime job -- lifestyle change expert.
Wrong, most obviously with those who get another job quickly.
> "Any good business always has an accounting department,
Wrong again, most obviously with the smallest good businesses.
> and someone's watching the money," Steve Economides says.
Depends entirely on how good the business is.
> The stay-at-home spouse can help track spending, set a
> budget, clip coupons or watch for grocery sales, and cook.
It makes a lot more sense to look for another job instead and dont stay home doing that.
> "I don't care if you've never cracked a cookbook in your life, you can
> eat for pennies on the dollar at home," Annette Economides says.
Yes, but whether it makes any sense to do that is another matter entirely.
> An easy dinner like barbecue chicken, baked potatoes and
> frozen green beans can feed a family of four for $3 per person.
> That's a big savings over $10 entrees in a restaurant.
Only fools do much of that last.
> The thrifty duo also suggest the laid-off spouse get on
> the phone and negotiate with those who must be paid
> monthly, including credit card and insurance companies.
GREAT way to see them jack up the interest rate you are paying.
> Week 4: Consider bigger changes
Consider hanging yourself or selling the more saleable kids.
> Sometimes, cutting corners and making smaller adjustments don't add up
> quickly enough to make an immediate difference, the Economides say.
Must be one of those rocket scientist eejuts.
> If there's a $1,000 budget gap at the end of the month,
> small steps won't scale the mountain of expenses.
Must be one of those rocket scientist eejuts.
> In such situations, you may have to make bigger changes
> to keep the family afloat, Annette Economides says.
Must be one of those rocket scientist eejuts.
> "You've got to survive," she says.
Wrong again.
> "But you want to survive with your family intact.
It might make more sense to get rid of the parasites.
> So you've got to make changes."
Not if you get another job quickly.
> The Economides suggest renting a room, such as an unused guest
> bedroom, a basement room or a child's room (if two kids can bunk in
> one room). Depending on your location, rooms could bring in an extra
> $200 to $600 per month.
No point if you get another job quickly.
> Establish criteria, screen prospective tenants and set ground rules,
> Steve Economides says.
More fool Steve Economides.
> With careful planning, a rental can make a big dent in a monthly mortgage payment.
Hordes of us dont even have a monthly mortgage payment, stupid.
> To cut more deeply into monthly expenses, sell extra vehicles and go
> from a two-car family to a one-car family, the Economides suggest.
Stupid approach if you end up with another job quickly, you just waste the transaction costs that way.
> Learn local bus routes
Thats easy, there are none.
> or negotiate car use with your partner.Maintenance and car insurance
> can cost hundreds every month, Annette Economides says.
Only if you are terminally stupid. Mine doesnt even cost hundreds per year.
> Making ends meet may mean putting away pride and finding
> a job that pays less, but still covers the essentials.
Must be one of those rocket scientist eejuts.
> A few weeks ago, Barajas visited a restaurant.
> His waiter was an ex-mortgage broker.
> According to Barajas, he simply said, "I gotta do what I gotta do to feed my kids."
So why doesnt he sell his arse ?