In 2008 when the economy crashed people were being laid off by the thousands, and it seemed no one's job was safe. My husband's employer cut its staff by nearly half, and the remaining half were forced to take two-week rolling layoffs, which meant every two weeks a different set of employees were out of work and out of pay. Luckily, through it all my husband managed to keep his job, and we managed to stay in out of financial trouble.
In early 2012, things seemed to be improving, and have been going well until recently. Not long ago employees were informed that there would be rolling two-day layoffs, and just a week later the entire plant was informed of a three-day shutdown. This is how the three-day layoff will affect us, and what we are doing to prepare for more layoffs in the future.
How the layoffs are affecting us
Due to changes in the unemployment rules for our state, my husband will not qualify for unemployment benefits during his layoff. The impact of my husband not being paid for three days is going to be quite painful for us financially. Add in the recent string of bad luck we've had since purchasing our first home that includes some plumbing issues and a costly air conditioning repair, and our finances are strained to the max.
How we are preparing for further layoffs
We have no way to know the real reason for these layoffs, but we are erring on the side of caution by preparing for the worse. The first thing I decided to do was cancel the data plan I recently added to my wireless phone plan. Cutting that expense will save us $30 a month or $360 a year. We are also canceling a trip we had planned. We will lose some money on cancellation fees for the trip, but over all it will save us around $100. Lastly, we are cutting our entertainment budget by $50 a month, which will save us another $600 a year.
I learned some lessons from our earlier experiences with layoffs, so I'm a little more prepare to fight it this time. All told, these little changes will save us $80 a month or $960 a year. I can't be sure that it will be enough to keep us afloat if the worst case scenario happens, but it's a start for sure.
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