How much would you cut back?

[bluelikejazz]

DH got laid off 3 weeks ago. He's still waiting for the first unemployment check to come through. From what I understand it will be back-paid once the claim is fully processed.

With his unemployment checks, our budget can remain in-tact if we eliminate our addition to savings. Once unemployment comes through, we won't need to touch our e-fund (full budget for about 10 months, Bare-bones budget for 12-14 + some mutual funds DH has had since he was an infant that could be used in a dire emergency (we are currently counting it as retirement).

If you were us, would you still attempt to put money into savings?

Happy to answer any questions!

[countthestars]

How are his job prospects? Since you have such a nice efund, I probably wouldn't cut back too much unless you are spending tons of money on stuff you don't need.

[megs193]

I would start to cut back on some luxuries if your DH is in a field that can be hard to find work in. My FIL works in IT and he has been out of a job for almost 2 years. I wouldn't start eating rice and beans but I would try to eat out less, buy less clothes and other things like that.

[Deleted]

Yes, I would cut back. DH has been unemployed a few times and as long as he was unemployed I considered our finances to be unstable.

At this point, I wouldn't cut down to eating beans and ramen or anything like that, but I think it would be good to look over the budget and see where you could easily cut out luxuries.

[DazeyDee]

My answer is heavily influenced by the situation DH & I are just barely crawling out of, so keep that in mind.

I would cut back now. DH got laid off 2 weeks after we closed on our house, 2 months before DD was born. With his UE, we were fine, and I still had my job so NBD, right? Until he still hadn't found something a year later, and then I got laid off too. He just started a job 3 weeks ago after 2 years of UE, and I'm applying for 20+ jobs a week with no luck. I wish we had cut back more in the beginning so the end wasn't so damn scary, because it was absolutely terrifying for a couple of months. We ran through everything we had just to keep our house, and for a while even that was questionable.

The market here is really weird right now - tons of jobs are posting, but hiring companies are flaky. And it seems like, more then ever, it's a game of who you know. Because of that and because of the horrific job searches DH & I have had, I am much, much more conservative then I was 2 years ago.

[pamela]

I would cut back because you don't know for sure he'll find a job in the current location and you may need that money to move.

[definitelyO]

I would start tightening up the budget - stopping with luxuries, maybe cutting back cable, eating out, but not eliminating entirely. but definitely being more conscious of where the $$ are going.

[chessie]

Cut down to barebones. Have him start networking the market for jobs, get his resume and name out there. At the UE office, do they workshops, etc? I know in my state some are pretty helpful for you to prove your looking for a job so you can continue to collect. Have him start looking at jobs, so when he has to submit what jobs he has been applying for he won't come up empty. Biggest factors, network, be willing to look in other areas?, I wasn't sure- but are you working as well? If not, you could assist in the meantime.

[gt7301b]

I'd probably just stop eating out, going to Target, and ordering things from Amazon.

[cheese]

I would cut back too. Even though you have a nice e-fund I would be nervous if he doesn't find something and unemployment runs out. Better to be safe than sorry.

[Ashley&Scott]

Ditto everyone else, I would cut out luxuries now & extra spending now. (eating out, entertainment, unnecessary shopping, etc)

Personally I would rather limit my spending & still save it at all possible. You have no idea how long he'll be without a job.

[bluelikejazz]

Thanks ladies! To answer some questions/comments:

-We don't have cable, but could cut DH's data plan (would only save $10 month though).
-I plan to not buy any clothes/home stuff/etc
-Eating out can easily be cut

-I am working, and if we cut to super bare-bones (including me reducing retirement contributions) we could live on my income alone and bank the unemployment.

-He's had one phone interview and didn't get a follow up. He should have another (in-person) interview in the next few days. Job prospects look decent (he's a mechanical engineer), and I'd be willing to move if needed, but I don't think he is.

Thanks again!

[sjh722]

May 17, 2012 10:34:16 GMT -5 bluelikejazz said:

Thanks ladies! To answer some questions/comments:

-We don't have cable, but could cut DH's data plan (would only save $10 month though).
-I plan to not buy any clothes/home stuff/etc
-Eating out can easily be cut

-I am working, and if we cut to super bare-bones (including me reducing retirement contributions) we could live on my income alone and bank the unemployment.

I would keep your retirement contributions intact, if you can, and cut back to bank as much unemployment as possible to stretch your e-fund.

We've had a few friends in the situations described above (very healthy savings, unemployment ran out, unemployed for way longer than they thought) and it's a scary situation. In retrospect, they wished they would have cut back sooner.

[dexteroni]

full budget for about 10 months, Bare-bones budget for 12-14

This makes me think that your "bare bones" isn't that far below your full budget. Because of that, I would go to almost bare bones right now. I would hate to see you really screwed in a year when there's no more money and nothing else to cut back. Because you aren't in dire straits, you can probably allow an occasional extra treat - a dinner out, a movie night, etc. but nothing huge.

-I am working, and if we cut to super bare-bones (including me reducing retirement contributions) we could live on my income alone and bank the unemployment.

Don't adjust retirement contributions unless you absolutely have to.

Good luck to your DH in finding a job!

[heygrey]

i'd cut back naturally because any big change makes me gun shy with spending. even if we have the room for fluff right now, i'd rather bank that in case the rainy day does come and if it doesn't - we'll be having a party :-)

[bluelikejazz]

May 17, 2012 10:45:54 GMT -5 dexteroni said:

full budget for about 10 months, Bare-bones budget for 12-14

This makes me think that your "bare bones" isn't that far below your full budget. Because of that, I would go to almost bare bones right now. I would hate to see you really screwed in a year when there's no more money and nothing else to cut back. Because you aren't in dire straits, you can probably allow an occasional extra treat - a dinner out, a movie night, etc. but nothing huge.

-I am working, and if we cut to super bare-bones (including me reducing retirement contributions) we could live on my income alone and bank the unemployment.

Don't adjust retirement contributions unless you absolutely have to.

Good luck to your DH in finding a job!

Good point Dexteroni! We don't really spend a lot on "extra's" and I'm cheap when it comes to clothes (Sadly, a lot of my clothes come from stuff my mom buys, decides she doesn't want, and gives to me because she's too lazy to take it back) and the like. Our budget is pretty bare now. Our "date night dinner out" is usually chipotle or take-out chinese.

DH's last job didn't offer a 401K, so I am putting in about 30% of my income right now. Which is why we could live on my income if we cut this back (I'd still keep 5% because of company match).