[USER]

We haven’t shared with family about our one income family experiencing a lay off yet…

would appreciate some tough love and perspective from you all on how to hammer down our new budget;
Monthly income until Aug 1; (in aug lump some severance 3.5months)

$9400
$7k bills & wants:
Mortgage; $2400
Phones; $115.75 (Verizon unlimited + two iPhone payments)
Internet; $40
Water $66
Sewer; $46
Garbage $25

Energy $60 a month summer $175 winter
Debt: home remodel gone rouge
Solar loan $220 ($31k 5.0 in)
Home improvement loan $500 ($23k 5.5in)

Cc $15k (no interest till Oct 2026) $250 payment
Gas: $250 a month
Groceries $1300-$1600

Subscriptions $100 (gym $79 includes babysitting)
Lifestyle: kids activities, fun money, bday parties, home stuff, trips, holidays, car registering, snacks, doc appts
$1400 +/-
Savings each month
$2400

Insurance for cars Is paid every 6 months, due in December $700 (2 paid off cars with liability)

Pre tax retirement contributions until August
$600 per month w/ 40% match

Estimating $1k health insurance per month in Sept via Marketplace

Preschool will be $650 per month starting in August
In CA, 2 adults 2 kids, no savings, partner is in tech and leaving his company after 10y.

I’m prepping my resume as he is anticipating a longer job hunt in this current climate. Oh and retirement numbers;
Retirement & stocks;
$150k inside of 401k, iras
$5k 529
$5k RSU

[Cris]

Ah, yes. I lived this nightmare 18 months ago. Basically the same numbers but we have 3 kids, a $50k emergency fund, more in retirement (which didn’t matter) and there was no severance payment.

Husband was out of work for 10 months and then finally got a job that paid $45k less than his previous one.

In the meantime, I immediately got hired for $22-25/hr (full time & part time, working 60-70 hours a week) which kept us afloat as we burned through our savings.

The plan was to quit when he got hired and we had a little bit of emergency funds scrapped back together but when he got hired at a significantly lower rate I still need to work 2 jobs to keep us going.

We are hopefully moving out of state soon to somewhere more affordable. I’m burnt out and missing my babies cause I work too much.

We cut everything we could, sold the second car, and I learned how to not sleep anymore.

California sucks and I can’t wait to leave forever. Oh and we qualified for MediCal after a few months, look into it, you might also.

[Sue]

Sorry about your situation. Can your spouse stay at his job? Will he get any severance or unemployment?

If he is leaving voluntarily, he needs to get any job asap whole applying for a job within his field.

If preschool is at a private school, enroll your child in public school.

Cut expenses as much as possible, sell anyything possible, maybe rent out a room? Good luck.

[Wildt]

That groceries $1300-1600 need to be pruned.
Get ready to lose the 2nd car.

So, the 9.4K will still run till end
July + severance of 3.5 months.

– what’s gonna happen in Dec??
Are yall panicking? By the time he leaves the job it’s almost quarter 4 (holiday season) where job openings are scarce.

Y’all have to be prepared to be without cash inflow for at least 6 months.

[Dawn]

Keep the gym, especially with daycare- make it date night and you need to stay physically and mentally strong.

Start DoorDash/Instacart/Uber and selling non-essentials now, nix savings/lifestyle, reduce food costs for now.

Stay focused and realize this too shall pass.

Do not borrow or use that 401K/IRA. Once back employed, #1 focus should be 3-6mo emergency fund.

Hang in there, it will get better.

[Henry]

I’m sorry you’re going through this. You say that you have $2,400/mo set aside for savings, yet you have no savings?

You need to cut your food and extras budget as low as possible for the next few months – no extras at all, insisting the gym.

If he’s not anticipating getting another job within the 3 months severance that he’s getting then you’re in big trouble after that without an emergency fund.

Can you have a garage sale or find things to sell in FB Marketplace to get a small cushion?

[Stef]

You can get health insurance quotes now. Cobra may be cheaper than marketplace. It is for me. Best to check, don’t assume.

Agree slash expenses now. Food seems high. Gym is not necessary.

Both parents need to be job hunting hard now (him) or by July (you) if he doesn’t have something yet.

I would not put a child in preschool with both out of the workforce, you can’t afford it.

[Knee]

Time for finding new tech job for August- update resume. Tech is huge scope. Cyber? Program writing? Auditing?

Lockheed, Apple, Raytheon, McKesson, Delta Dental….

Lots of choices with remote jobs… budget- all the fun stuff for June and July need to be put on hold and that $$ in savings!

[Kristin]

I agree with others to cut now. Groceries should be number 1 to look at. Shop sales, use rebate apps. Buy expensive items less frequently or not at all.

Cut the subscriptions completely.

Everything in lifestyle needs cut except car registration and doctor appointments.

Try shopping around for car insurance to see if you can save on that, even mid policy, because you’ll get a refund on the unused portion of the current policy if you can find a cheaper one.

Job seeking around the US holidays is a tough time.

[Rick]

Asking for thought love? That is like a bat signal for some. And I would be part of the some.

You were never saving money monthly. You were borrowing at the rate of your personal debts (solar, renovation, credit cards) to put money in savings. Yes.

You were paying to pretend like you had savings.
Now that liquidity is not all bad.

It is probably helpful now with the reduction in income. But you need to see it for what it was. Paying to save. And commit to not do it again when this chapter of your life is behind you.

But you are overall in solid shape. You have options. You have fat in your budget to cut. Pause, take a deep breathe, and acknowledge you have a position that can and will handle this.

If you get serious.
Cut those expenses to the bone. Get ruthless. Unless both of you say it is a must have, it is not.

I bet you come out of this with a much leaner and stronger budget. You will decide to crush the debt and then being real savings.

You are in a good spot for this type of life curveball. Get started on making it a positive pivotal moment for your family.

[Gigi]

Get rid of gym. Lifestyle cut in half until you find a job. You mention 2400 savings but mention no savings at the end.

Does that mean you will start saving?

[Author]

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