Trimming expenses for job loss

[twowhat?]

I am going to be losing my job sometime next year. I make almost as much as DH. We just bought a new house. Without my salary, our mortgage will be 53% of DH's GROSS pay. So I am sure we will be dipping into savings if I don't quickly find another job that pays at least what my current job does. Thankfully we have no other debt.

Just looking for ideas for trimming expenses. We already cut cable. We keep landline because we feel like we need that for emergency use (911), but we keep only the most basic package. We do CFLs, run fans, etc.

We have a Costco membership; I'm very careful to only buy what we absolutely need.

Anything big that I'm missing? Obviously I'm doing what I can to use coupons, grocery shop vs eating out, etc.

Any BTDT advice on managing stress, etc also appreciated!

[misshollygolightly]

I'm so sorry, and wish you luck with your job search. Sounds like you've covered some of the basics already, but here are a few thoughts that may or may not work depending on your lifestyle:
-if you have more than one car, either sell one (if you must) or just stop driving it as much as possible (to save on gas, maintenance, etc.)
-let unnecessary memberships and subscriptions expire (magazine subscriptions, gym memberships, zoo/park/entertainment memberships, Netflix, etc.)
-look for monthly/recurring expenses you can minimize (maybe cheaper phone or internet plans, maybe a smaller garbage bin so you pay a smaller garbage fee, hold off on dry cleaning clothes, etc.)
-plan a couple of meatless meals each week (beans and rice, egg-based casseroles, etc.)
-cook and plan meals from your fridge and pantry (use up what you already have)
-cut back on gifts, holiday purchases, etc.
-use the library (free entertainment and books, etc.)
-look around and see where you're money is going...any places that it really shouldn't be, at least while you're going through this (hopefully temporary) pinch?

[elbenn]

I'm not sure how recently you bought your house, but it's totally worth looking at refinance rates because they are so low right now, and you can refinance now since you have your job. You can check rates at amerisave.com.

[ncat]

I moved savings into higher interest accounts and renegotiated our phone and internet package when my employer was in danger of going under.

[citymama]

Twowhat?, I could have written your post! I'm in the same boat, most likely. I've been hesitating to post about it here, but literally, the same situation. We'll be going from 2 salaries that are roughly equal to one, and we just bought a house. It could happen as early as the spring, although most likely a year from now, and of course I'm hoping the job loss won't happen at all. I'll be watching this thread!

[zag95]

If you have kids in preschool or daycare, calculate those expenses as going away (i.e. pull the kids out or severely trim back if you need this in place to job hunt)

Will you qualify for unemployment? that may help.

[niccig]

In addition to all of the above, wait on making any purchases. I've found that I was in the habit of getting something, but if I waited and tried to make-do with what I had, turns out I don't need the item after all.

Can you put all of these into practice as much as possible and get more savings as a buffer?

Good luck on the job hunt, hopefully something comes through quickly.

[KrisM]

Call around for lower insurance rates.

Downgrade your cars. This might save on insurance as well as free up some cash.

Wait to buy things and shop the thrift stores for a bit to see if you can find it there. I've been really happy with the clothing selection and spent only about $150 on 3 kids for fall/winter. I only need snow pants for DD and maybe boots for her and I'm done.

I hope you keep the job or can find another quickly!

[Clarity]

I'd ditch the home phone too. You have two cell phones, right? I know plenty of people who do just fine without a landline. Don't renew magazine subscriptions, cancel the paper. Cancel the housekeeper and the lawn service. Make your own coffee and carpool with someone if you can.
:grouphug: to you and citymama. I thought my job was recession proof but it's not. Hopefully, the mandatory furlough time that we're being given will be enough to save our jobs. I'll be sending as many pt's as I can.

[kbud]

Ditch the landline but get ooma. We've had it for several years and it's great. If you shop around you can get the equipment for about $150 and have no phone bill at all. The service is just as good as a traditional landline (except no phone if the power is out). 911 works just fine with it, I've used it for 911.

http://www.ooma.com/

[AnnieW625]

Honestly I would sell the house you just bought if you can (IE: no 2 yr. pre payment penalty) and downsize to a mortgage that is only 1/3 or your DH's income. All of the little things like no land line will help too, but nothing will make a bigger impact than having a smaller mortgage.

[twowhat?]

Honestly I would sell the house you just bought if you can (IE: no 2 yr. pre payment penalty) and downsize to a mortgage that is only 1/3 or your DH's income. All of the little things like no land line will help too, but nothing will make a bigger impact than having a smaller mortgage.

This crossed my mind too but a couple things keep us from doing that (at least right now): we have enough of a savings buffer to last us more than a year - nearly two - if we're careful with spending and assuming DH keeps his job. I am assuming job loss will be temporary (could be a bad assumption, but theoretically I'd get another job at some point), my company is currently trying to see if they can reposition people within the parent company (so it is possible I'd still have a job if they can reposition me), we'd lose a chunk of money by selling the house we just bought in real-estate and closing fees, we bought the house a MONTH ago and we'd have pre-payment penalties. I hope we don't have to resort to this (as it's a last resort at this point). It's scary to think about.

Thanks for all the suggestions so far! I'm making a list...

Really, this STUPID economy!!!

[HonoluluMom]

Didn't read through all the previous posts, so they may be repeats:

- Look closely at your insurance policies to see whether you need them, if you can increase your deductibles, get better rates, etc. For example, I used to have a jewelry rider on my homeowners' policy, but I put the insured pieces in my safe deposit box and canceled the jewelry rider. On your auto policy and homeowners' policy, you should consider increasing your deductibles (but be sure you can cover the deductibles).

- air dry laundry

- not sure of the energy/cost savings, but hand wash dishes rather than run the dishwasher.

- cancel gym membership, newspaper and magazine subscriptions, club memberships, etc.

- look at your cell phone plan to see if you can get a better deal.

- of course, cut back on discretionary spending significantly such as eating out at restaurants, going to Starbucks, going to the movies, etc.

[brittone2]

Can either of you consult or do PT evening/weekend work to build up a buffer or take the heat off right now? That could perhaps lead to networking or leads on other jobs or a move into another field? Do you have a network in place, and if so can you start working on nuturing some of those relationships just in case? Do you have a professional organization with area meetups or conferences/continuing ed that could give you networking opportunities? That's IMO probably the best use of your time right now and may be more beneficial than cutting coupons, kwim?

It sounds like you are already doing a lot to save. I'll echo PPs and say when we were pinching pennies with DH in grad school (and even now, we do a lot of this out of habit and to stretch our income)
-library DVDs and hulu in lieu of cable, and of course books ;)
-minimize food waste. Make sure you aren't throwing stuff out (easiest way to save money IMO vs. couponing
-consolidate errands to save gas
-DIY holiday gifts whenever possible, ask if anyone in your family would prefer to do a name exchange, consider agreeing to not exchange gifts w/ siblings if you think they'd be up for it, etc. That type of thing really depends on family dynamics but now is the time to discuss it IMO, and you have a reason for wanting to reduce a bit there. Maybe consider setting a modest gift amount w/ DH for your gifts to one another, or deciding to not give a physical gift to one another this year. If friends/family are the type to ask what you want for a gift, maybe suggest GCs for gas, groceries, etc. (more practical things). If someone asks what your kids would like, I wouldn't hesitate to name needs (clothing for example) if you anticipate needing to buy certain items over the next few months.
-consider shopping more unusual sources for food savings-ethnic markets, meat markets, etc. vs. standard grocery store (but not if this is going to require tons of schlepping all over town negating the savings)
-buy 2nd hand clothing if you need anything, particularly for the kids
-cell only
-cheap or free entertainment-our library puts on short plays for kids, they have family movie nights, etc. Look for free festivals or other inexpensive entertainment options
-optimize your insurance (like PPs said, perhaps increase deductibles if you have the cash to cover them if needed).
-if you have off peak power rates (this is being phased out where I live now, and we didn't have it in the last house I lived in, in a different state) try to time your routines so you are running the dishwasher, dryer, etc. at times to take advantage of off peak rates. Once you settle into that routine it is an easy way to shave a bit off of your electric bill.
-keep thermostat set to minimize energy costs. Even a few degrees cooler/warmer can make a bit of a difference, and once you get used to it, no big deal really.