Unemployment rate is rising. What steps are you taking ahead of time to save money?
Many people are losing their jobs in recent months and the prospect of more is real. What have you done, even if you still have a job, to save extra money and prepare in case you are laid off? Wondering in Indiana - I like the idea of stocking up on food while the money is available. That would eliminate the fear of starving or going to a soup kitchen.
Public Comments
- When things started the downturn last year, I started getting wise about purchases. I started looking for sales on necessities. I stocked up on canned goods. Flour, sugar and other items are plenty in the basement storage area. I bought a freezer (extra) and started buying my beef and pork in bulk at a locker plant (slaughter house). That's the easy part. Now, I assume a price for everything I use and while I had a bigger deficit at the beginning of the year, I have a huge surplus of money. The only reason it worked was because as I used items, I made an approximate on what I would normally pay for the items and put it into the account I started for buying the bulk. My start was $2000. It drained down to $790. By the end of last year, it was over $3000. I am already doing the same this year and while food prices have gone up somewhat, I am still in the black over my previous start last year. Secondly, since I have a background in the markets, I started watching the gas futures to see if they were going up or down and buy my gas accordingly. Guess what else is cool. I actually cook more when someone comes over instead of going out all the time like I used to. The funny part is, women appreciate it, at least more than my buddies do, lol. I've probably saved more in that aspect than I have in the buying of goods.
- I knew my job was ending last year at the end of July so I stashed every penny. I didn't spend any unnecessary money. Also, I noticed my 401k from my previous company was losing about $100 a month. There wasn't a lot there so I closed the account and paid off my car. That was one major bill I didn't have to pay while unemployed and I stopped my losses in my 401k. Also, I got a roommate to help pay the bills and put a little extra cash in my pocket to supplement my unemployment. I also cut back on going out. I only go out once a week with friends and we go to places that have cheap happy hour drinks. And, of course, I eat first so I don't order food and I don't drink very much because I'm full. I also lowered my thermostat in the house and asked my roommate to only use the dryer at night when we are home so it will help warm the house. I also cook at home now instead of eating out. I always took my lunch on my last job. That help me put extra money in the bank.
- Technically, if I work full time I earn about $300 per month less than I spend. But between having a room mate (who will be moving out soon) and running a small hobby/business from home - I am able to put a little in savings every month. I am also trying to use my income tax return wisely. Here is what I have come up with: Pay off all debts that are not student loans first. I want my credit card empty and my credit in good standing if I loose my job. (which I am usually pretty good at, but last year was hard so I owe over $600) I figure an empty credit card could come in handy if I get a job that requires a nicer wardrobe. 50% of what's left after that is going to a bank account that I don't have easy access to. Hopefully things will be looking better by August and I can use part of this money for car insurance and my daughter's school stuff. If not - I will try not to touch it until necessary. ... If I have it figured out right, we should be able to get by for at least 3 months on this plus unemployment. The other 50% ... I am still trying to decide. There are some investments I would like to make for my home business. There are things my daughter and I want. And there's always the idea of taking a big chunk out of my highest interest student loan. ... I know that $700 will go to my car. (insurance) The rest ... Probably make an extra big student loan payment, a cheap scanner for the home business, and stick some in savings for whatever comes up. For stuff that isn't dependent on my income tax return: Trying to resist the urge to go out to a nice restaurant once a month. Reminding myself how yummy (and cheap) a baked potato can be for dinner. Resisting the netflix membership I want. Didn't renew our zoo membership last year. Almost no extra driving. Going to the gas station I don't really like because it's like 5-10 cents a gallon cheaper. ... Pretty much just avoiding the extras I was hoping to splurge on this year. I really hope that I don't get laid off. But I am sure that if I do, it will be turned into a positive. I make like 3x more money (per hour) doing freelance work anyhow. But I am afraid that with so many people watching their money - it would be hard to find a steady stream of clients.
