If you'd discoveed that you might be made redundant would you cancel things immediately or wait and see?(50 Posts)
Found out this week that I might be made redundant. This will be a disaster for us since I am the breadwinner and I have a six figure salary. DH does also work but his salary alone won't cover our outgoings.
I won't get more than a couple of thousand redundancy pay.
We are not frivolous with our money at all but we have a large mortgage and school fees and then bills for the running of the house. We have savings but they won't last long. We have lots of equity in the house but large houses are not moving quickly around here.
Its not confirmed but I have been given a tip off that even though my figures are the highest in our team and I make the most money for the team, since I am also paid the most and have a stand alone role it is likely to be me selected.
My inclination is to cancel everything i.e cleaner, sky, gym etc just in case since over the next few weeks we could save a fair bit this way. However there is a chance that I'll keep the job. What would you do?
Cancel them, save the money and if you keep your job you can start them all back up again
Explain to the cleaner your position and terminate the contract, if things turn out ok then she'll be more likely to come back.
Cancel everything else and batten down the hatches so to speak. Money you save now could help you out in the long run.
Update your cv and begin speaking with some recruitment agencies.
I would ditch sky and the gym anyway as both are usually an almost total waste of money. Also check if your mortgage payment protection covers redundancy, as that will take care of a major outgoing cost.
Update CV just in case, and look at reducing food costs, usually nobody notices if you get one brand cheaper on most products and put them in the more expensive packaging.
Consider the savings you may have in childcare costs, as they will certainly be more than cleaner costs.
Also, take note of big clients' contact details, contractually you cannot usually steal them for a year, but they may come in useful a year on in a new place.
Take out a salary insurance NOW
As long as you haven't had formal notice if redundancy you'll be ok
I took mine out a year ago and was made redundant June this year
Whilst I haven't claimed on it yet (was paid 3 mil) andvi have got some contract work, it gives me the comfort zone if knowing it's fine if I don't work for a bit
and redundancy money Chipping, yes I'm fine and I've got contract work for 6 months but if I didn't have that insurance to fall back on I wouldn't have the luxury of being able to consider tempoary work.
The insurance is about £70 a month to give me £1500 a month
Personally I would...
- Take out redundancy insurance ASAP (if you haven't already got it)
- See if it's possible to go 'interest only' on your mortgage or take a 'mortgage holiday'
- Start looking for another job - pronto
- Keep the cleaner until you know for sure (good ones are hard to find)
- Cancel Skye (it's shite anyway)
- Consider the gym (Are you using it? How much notice do you have to give? How much is it?)
- Look to see if it's worth downgrading anything - such as your cars
- See if you have anything you could sell - antiques/jewellery etc - you don't have to do it, just know what you have.
- Speak to the school at the first opportunity. Let them know what you know and ask them what can be done. They may let you 'give notice' but keep your places until you know.
- Be mindful of the money you are spending on absolutely everything - including food shopping, uniform, general clothes, coffees/lunches out etc
When will you find out do you think?
<Prepare for the bashing that stating you earn a 6 figure salary but are worried about money usually gets you on here>
Dolly - how does it work with your insurance? You have been made redundant but haven't claimed, you are now doing temp work so wont be made redundant again... how long do you have to claim on your redundancy?
I cancelled some things when I knew, my cleaner would have been the last of them!
Good advice from Chippingin above, you'll be surprised at some of the stuff you can cancel, without even really noticing.
And if you're earning a good salary now, chances are you'll find something else. I don't know what you do, but when I had my cv done properly I was inundated with calls from agencies. There is work out there.
I would immediately start to act as if you only had your husbands salary with regards to extras like gym/sky/cleaner/very nice food. Apart from school fees (I'm sure they're a massive chunk of your budget - start applying for bursaries NOW).
You could save a couple of thousand a month (maybe more?) if you did this. Also, good advice about the redundancy insurance. You could probably buy it today online.
If you're good with money then perhaps apply for a couple of extra credit cards - look at mse for the ones with the best deals (ie. shopping cashback etc) as you then have those to fall back on.
Also, try to change your mindset slightly about your equity - you can take a much bigger hit if you're realistic about what it will sell for and see it as not real money (but just instead as part of some giant Ponzi scheme over the last 15 years). Say for example you had a fake 500k in equity but a real figure of 300k - you could still buy a perfectly nice house 30 minutes from London with it (in Hertfordshire or Buckinghamshire) where the state schools can be good too. I'm 26 minutes from Euston here and the school is good enough to not have to pay school fees.
I couldn't claim til sept as I've been paid til then really.
So if my 6 month contract isn't renewed I claim then, I'll have to give them the details of the contract and my previous employment.
I'll have to sign on too, just to prove I'm unemployed.
I've spoken to the insurance co all the way along and checked.
Chipping's advice is very good.
I would cut everything you can asap, even if you aren't made redundant now it will help to know how you could manage if it happens in the future.
Can you find out what the school's policy is in this situation, you won't be the only family to facing this.
I don't understand why you will only get a couple of thousand in redundancy pay if you earn over £100k - are you sure that's right?
Could you talk to someone informally and ask whether taking a pay cut may protect your job? If you are making the most money for the team, it is probably only your higher pay that is making you more vulnerable to the redundancy.
It's not ideal, but it may buy you some time to find another job without the threat of a huge drop in incomings.
Thanks everyone. Didn't sleep last night at all worrying but trying to stay positive.
I have offered to go part time but if that doesn't work then I will offer to take a pay cut. Any money is better than no money even if it only buys me a few months to find another job.
Unfortunately it is right about the redundancy pay. I've been with my company for ten years but they only pay statutory redundancy so it would be about £4k. Ok its not nothing at all but it is less than a month's take home pay and so it won't last long. They might pay me in lieu of my notice but they are not obliged to.
Have called the bank this morning about switching to an interest only mortgage and have cut back the cleaners hours but not cancelled her completely since I'm very conscious that its her livelihood too.
I will definitely have a look at the redundancy insurance since I thought that as soon as I had a whiff of redundancy I'd be ineligible. If I can take it out right up until the point at which I'm formally put at risk then its definitely worth doing.
Take it out now
You can't claim until you've been insured fir at least 3 months so best to get it now.
Thanks Dolly that's really helpful I'll have a look now
Have a look at [[http://www.moneysavingexpert.com/mortgages/payment-protection-insurance this]
I wish you all the luck in keeping your job.
I think any insurance cover you take out now would not be valid depending on how you found out that you may be made be redundant. I would be very careful as it may just be a waste of your money. Claims very early on in a policy would be scrutinised very carefully and if found to be fraudulent could leave you unable to get other insurance such as car insurance.
There is usually a 3 monto qualifying period for these insurances but if you haven't had a formal notice of redundancy you are fine.
I took mine out when I thought it was a distinct possibility and I'd had notice of going 'on the bench'.
But that isn't formal notice as it's entirely possible you'd get another job at the same co.
Obv best to read the small print to make sure you'd be legible but I'd say unless you've had a formal notice, which firms part of any redundancy process, you're fine.
* spellings courtesy of iPhone, sorry!
I don't sell insurance btw!
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