Fiscal responsibility and Your Job Search

posted by Bob Waldo on ERE Exchange on May 27, 2009

Well, as is often the case, my own personal circumstance has resulted
in the subject for today's email on job search advice. Call me a
hypocrite if you will, but I will pass this along as the result of some
recent mistakes I've made on the financial front that have resulted in
a rocky month from the standpoint of my limited finances.
 
When
living on a fixed income such as unemployment and/or your rainy day
nest egg, I can't tell you how important it is to remain fiscally
prudent, and know how to prioritize your bills and cut back on
expenses, no matter how necessary and basic some expenses may be. Here
are a few examples of do's and don'ts that you might want to consider:
 
1)
DO call all of your creditors and explain your circumstance. often,
your credit terms may have a provision for loss of income which may
enable you to minimize and in some instance forgo, your installments.
Take advantage of this when you can. In the worst case, at least you
have advised your creditors and are in contact with them to make
favorable payment arrangements should you get to a point where
something can't be paid for a month or two.
 
2) DO pay off
credit cards or loans that have minimal balances and don't use those
lines of credits unless it is an emergency situation.
 
3) DO cut
off or minimize luxury expenses. yes, you may need cable TV, but do you
REALLY need all of those premium movie channels, and the extra
converter boxes in the guest bedroom and the kitchen? Look closely at
your cell phone usage, and make adjustments to your plan downward, when
applicable.
 
4) DO take advantage of some of the competitive
plans going on between telephone, cable and cell phone providers. There
are some unbelievable deals to be had out there that can minimize your
cost and maximize your coverage at the same time.
 
5) DO look at
your car insurance, homeowners insurance and other policies and see if
they are up for renewal. When they are, give careful consideration to
your coverages. be sure that if your automobile or house are financed,
that you at least have the minimum coverages needed in accordance with
your loan terms.
 
6) DO NOT think about that vacation to the French Riviera. I don't care if you think you deserve it. You can't afford it.
 
7)
DO NOT give into the kids who are constantly nickle and diming you for
everything they "need". They need to understand the economics of the
situation, in accordance with their age and ability to comprehend. You
certainly don't want to scare them into thinking you're going broke,
but let them know that things will be tight for a while. have your
teenage children sit with you one night when you pay the bills. That's
a real attention grabber.
 
8) DO NOT spend money on unnecessary
things for yourself in order to make yourself feel better. Yep, that
32" HDTV is a great price, but you also need to put food on the table
and keep the lights on in the house next month.
 
9) DO NOT take
the family out for a nice dinner like you always do. Plan a gourmet
meal at home, and get the family involved in it's planning and
execution. It's less than half the cost of eating out, and the family
bonding experience is priceless.
 
10) DO NOT take out additional credit in order to make ends meet. Be creative with what you have, and use it wisely.
 
I
know all of the above is very over-simplified, and each of us have our
own set of circumstances we must deal with. Use the above suggestions
as exactly that. Suggestions. While many of us are already doing most,
if not all of the above, it's always a good idea to remind ourselves
that we can get by with less than we think we can.
 
I myself
live a pretty austere lifestyle, and lately I got sloppy by spending
money on a few things I shouldn't have, and it has cost me money that I
could have used on more frugal purchases and necessities. Please don't
put yourself and your loved ones in this same precarious position. If
you live within your means now when things are tight, when you finally
get back to a more reasonable income, these habits will stay with you
and you'll find that your new income will stretch that much farther.
 
Peace!
 
Bob