Losing income in 2018. Anyone else? What's your plan?

[Ann.without.an.e]

UP DATE  in Post #122

 

 

 

 

Edited January 7, 2018 by Attolia

[Hilltopmom]

Sorry you guys are going through that.

Can you increase your work hours enough to really help?

 

We just had a big increase in expenses and I’m so glad I went back to work part time this fall. I had originally agreed to work 2 days but am doubling my hours after the holiday break to help pay bills.

But I’m not really homeschooling anymore this year and have my mom to watch my little kids so it’s possible.

Can you hold off on the teen driver? I didn’t get my license till

I was an adult.

Edited December 28, 2017 by Hilltopmom

[Lang Syne Boardie]

I'd go ahead with the teen driver, if you are working more (outside the home but also doing the frugal stuff that takes time), it'll help a lot for him to be more independent. Our boys have all worked for their insurance and gas; a lot of kids do.

[JIN MOUSA]

Have you recently checked with your service providers (internet, cell phone, insurance, etc.) to see if you're currently getting the best rates?

[frogger]

My DH took a pay cut last year to move to a new company. I wasn't particularly happy. Then this year the old companay announced an 8% paycut across the board until they realized that government contractors and some unionized people couldn't get a pay cut so everyone else has to make up for theirs. It could be >12%. So he took a pay cut last year so he didn't have to this year. I guess he dodged that bullet because I don't see that company being a lot better off for a few years.

[JustEm]

Dh would be looking for a new job if his salary got cut that much for no reason.

[Pegasus]

*ouch* So sorry to  hear about the pay cut; that is significant!  Is DH otherwise happy with the job? Sounds like it may be time to look for something else. The biggest pay raises are almost always achieved by changing jobs.

 

Take a hard look at your car insurance needs and current coverage. Our costs actually went DOWN when we added teen drivers because it forced us to really consider the coverage options. We increased our deductibles and dropped collision/comprehensive on our oldest vehicle. Also ask about discounts.  Our DDs get discounts for being good students and having completed a simple online driving education course offered by the insurance company.

 

Also consider if any automatic savings into retirement or HSA's need to be adjusted until you can get a grip on the new lower cashflow.  

 

Good luck!

[Carol in Cal.]

I'd run the new tax numbers and see whether you're really behind by the full $20K.  You might be among those who will do better in the new plan, it's hard to say.  If that dropped the deficit to, say, $16K instead, that would be good to know.

 

I agree that he should start scouting out new opportunities elsewhere.  This is kind of a warning flag, really.

 

Is your parttime job expandable, and can you work a little more without driving yourself crazy?  Or are there seasons of the year where being more available would be valuable to them, and when you can count on getting more hours/pay?  Might you be due for a raise, and should you ask for one?

 

How old is your teen?  I think that asking him to wait 6 months might be reasonable.

 

Have you been paying on your mortgage for a long time?  If so, you might look at refinancing into a lower payment.  This would extend your loan for longer, so I wouldn't do it lightly, but if your back is to the wall financially it might be really helpful.  Also, (after you decide on this and take action one way or another), you might look at arranging a HELOC as a back up.  I did this when DH got a layoff notice some years ago, and although we ended up not needing to use it during his unemployment, it did give us a reliable fallback that was nice to know was there.

 

Beyond that I would say, scrutinize your expenses and try to knock them down, starting with the biggest ones.  Like, is your homeowners' insurance available at a much better premium elsewhere?  

 

Do you have a room or inlaw quarters that you could rent out?

 

Books to read:  "Your Money Or Your Life" and "The Complete Tightwad Gazette".

 

[creekland]

Out of curiosity, is the CEO also taking a major pay cut?  How are the dividend payments to stockholders (if publicly traded)?

 

I'd be encouraging my guy to look for a new job to replace the old - not quitting and looking, but looking while still working.

 

Sounds like this is one business that is not only (likely) getting tax cuts, but figuring out they should grab their workers' cuts for themselves too.

[MedicMom]

My husband is taking his dream job and will be initially taking a pay cut of around $25,000.

We can absorb some of that with the new tax plan and it will be better but cheaper insurance. I plan to add another day at work a week, and because he will only be working two 24 hour shifts a week, he can work another job if he wants.

 

If there is nothing you can cut out, I would look at increasing your income or that he look for another job.

[TheAttachedMama]

We are also looking at a huge salary cut in 2018.   

 

I've been hinting, but my DH doesn't seem to want to get a part-time job.   He says he already works so much, and doesn't want to be away from the kids anymore.  (I can understand this.)   That means it is up to me to go out and get a job.   It makes me nervous because a) I already feel REALLY stretched for time.  Even on the weekends.  and b) I've been out of the workplace for so long.   DH doesn't get home until 6:15PMish, so I almost need to find a work at home solution.

 

I've seen people mention VIP Kids to homeschool moms looking to bring in more cash.   It means getting up at the crack of dawn.  (Starting work at 5AM.) 

[prairiewindmomma]

We are in similar circumstances due to a job change. Ds will not be getting a learner's permit as we can't afford it right now.

 

We are looking at the big stuff--insurance, medical expenses, food bill, etc.

[sassenach]

Losing about $800 a month. We also have a teen driver coming up. I’m looking into work at home income or part time out of the house if necessary.

 

Ds can’t take on a job. He just doesn’t have time for that.

 

I’m tightening up the grocery budget. No more meal delivery for us. We also have some fluff spending we can cut.

 

We need to make it to May. In May my disabled son turns 18 and he’ll have some ssi income to cover his expenses. Also, after May, dd’s major dance expenses will end.

 

We bought an electric vehicle about 2 months ago and that lowered our monthly gas bill by a net of $300+ a month. (We we’re all excited about the extra money in our budget, haha)

 

Dh is getting paid about $500 to coach in the spring.

 

So we’ll see. We can always get rid of other extras.

 

I’m sorry about the 20k cut. That’s a hard one to swallow.

[mommyoffive]

I'd run the new tax numbers and see whether you're really behind by the full $20K.  You might be among those who will do better in the new plan, it's hard to say.  If that dropped the deficit to, say, $16K instead, that would be good to know.

 

I agree that he should start scouting out new opportunities elsewhere.  This is kind of a warning flag, really.

 

Is your parttime job expandable, and can you work a little more without driving yourself crazy?  Or are there seasons of the year where being more available would be valuable to them, and when you can count on getting more hours/pay?  Might you be due for a raise, and should you ask for one?

 

How old is your teen?  I think that asking him to wait 6 months might be reasonable.

 

Have you been paying on your mortgage for a long time?  If so, you might look at refinancing into a lower payment.  This would extend your loan for longer, so I wouldn't do it lightly, but if your back is to the wall financially it might be really helpful.  Also, (after you decide on this and take action one way or another), you might look at arranging a HELOC as a back up.  I did this when DH got a layoff notice some years ago, and although we ended up not needing to use it during his unemployment, it did give us a reliable fallback that was nice to know was there.

 

Beyond that I would say, scrutinize your expenses and try to knock them down, starting with the biggest ones.  Like, is your homeowners' insurance available at a much better premium elsewhere?  

 

Do you have a room or inlaw quarters that you could rent out?

 

Books to read:  "Your Money Or Your Life" and "The Complete Tightwad Gazette".

 

THis is a huge RED FLAG.  I hope your dh is looking.

[mommyoffive]

We are also looking at a huge salary cut in 2018.   

 

I've been hinting, but my DH doesn't seem to want to get a part-time job.   He says he already works so much, and doesn't want to be away from the kids anymore.  (I can understand this.)   That means it is up to me to go out and get a job.   It makes me nervous because a) I already feel REALLY stretched for time.  Even on the weekends.  and b) I've been out of the workplace for so long.   DH doesn't get home until 6:15PMish, so I almost need to find a work at home solution.

 

I've seen people mention VIP Kids to homeschool moms looking to bring in more cash.   It means getting up at the crack of dawn.  (Starting work at 5AM.) 

 

I read this article and this person doesn't get up at 5 am.

 

Maybe there are hours you can work that don't require getting up early.

 

 

 

I started teaching for VIPKID when I was a full time middle school music teacher. I would teach from 9-11 on Friday and Saturday nights and from 7-10 on Saturday and Sunday mornings. I would make about an extra $1,000 a month

 

https://www.makingsenseofcents.com/2017/12/how-to-teach-english-online-from-home-with-vipkid.html

[ScoutTN]

That's big. Sorry!  :grouphug:

 

[Crimson Wife]

My DH would be pushing back and saying that his department needs to keep his salary the same and give him a promotion on paper. So if he's a director, bump him up to a VP.

 

That keeps senior management happy because what he's getting now would be less than what a [insert more senior title] should make.

[creekland]

Is anyone else reading this aghast at just how many Boardies are dropping income next year?  Esp when in the same job, but even if they have to change to a different place?

 

That really doesn't sound like it bodes well.

 

I know a relative of mine was just laid off from a state job (thanks NY! - Merry Christmas to you too!) with 19 years of service and no bad reports or evaluations.  There was no severance pay or warning - not even the typical 2 week warning.  She just showed up on a Monday (right before Thanksgiving) and was told (by a very sad boss) that powers that be in Albany said she was done.  No more information than that.  She's not union and it seems they didn't want her to reach 20 years with its vested retirement.  Having talked about it with others, that also doesn't seem to be uncommon.   :cursing:

 

Companies are doing these things.  States are doing these things.  How "common" is it?  And it really doesn't seem to bode well IMO.

[Laura Corin]

Do you have black box system to reduce insurance costs for young drivers?

 

Aldi was our saviour when things were tight.

 

We've been having some issues with our rental property, so will have an income drop, but not as big as yours.

Edited December 29, 2017 by Laura Corin

[Ottakee]

Yep. We will likely be.losing about $40,000 this upcoming year after taking a huge hit just 2 years earlier. Thankfully my house is paid off and we have relatively low property taxes.

 

Aldi's is our friend. Most clothing is from thrift stores. Sit down out to eat meals are 1-2 times a year.

 

That said, we are warm and dry and have money for utilities, taxes, car repair and food so we are way ahead of many families.

[Carrie12345]

I can't say for sure, because part of dh's income is based on commission, profit sharing, and discretionary bonus.  I can say that we're paying about $500/mo. more for health insurance premiums in 2018, so $6,000 for the year, at best.  It may go higher depending on our subsidy repayment calculations that are based on final income.  Or not.

 

This year's income was technically higher than last, overall, but a large chunk was in 401k and only partially vested, so not spendable.  In actual paychecks received, he came out about $3k behind 2016... and that's with a mid-year raise in salary.  They think they're real slick.

[DawnM]

DH had a CEO change where he works.  This CEO is cutting salaries  :huh:   DH will have a pay cut for 2018 of about $20,000/year.  It stinks.  I am so glad I didn't quit my small part-time job.  

 

So, we have to cut expenses.  While, at the same time, taking on a teen driving with a huge insurance increase.  We already have a fairly tight budget.  

 

 

I am thinking...

 

DS needs to get a part-time job to cover car insurance and gas.  

We can shave a little off in groceries if I take the time to shop better?

Thankfully, DD's braces will be paid off in January so that's a $150/month savings.

 

 

We already rarely eat out.  We don't go to movie theaters, do paid entertainment type stuff, etc.

 

 

I need to think outside the box here....what am I missing?

 

 

That really, really stinks.

 

We did not lose income, thankfully, but this year we went flat and didn't go up, for the first time, AND DH got almost no bonus, which is a cut of sorts.  

 

As far as what you are missing, it is hard to know without seeing your spending.  Sometimes things can be cut that people haven't though of before.  

 

We went through a few lean years back in the day.  We said no to the boys a lot.  We chose activities that were low cost or the best bang for our buck.  For example, no to soccer as it was $175 for 10 weeks PER BOY, but yes to boy scouts as it was $100 per by for the entire year.  And our troop was really good with $10 camping trips, etc....

 

There may be things you haven't thought of, but the best way to figure it out is to write down all of your expenditures and all of your income coming in and see where things can be modified or cut back.

 

I remember also that I hadn't realized that although my "retail therapy" was in the form of yard sales and thrift stores, and I found crazy amazing deals, it still was costing more than I was paying attention to.  I cut back that as well.

[Ann.without.an.e]

Is your DH looking for a new job?  That's what mine would be doing.

 

 

Is your dh planning on applying for new jobs? Are you willing to move?

 

 

Dh would be looking for a new job if his salary got cut that much for no reason.

 

 

Out of curiosity, is the CEO also taking a major pay cut?  How are the dividend payments to stockholders (if publicly traded)?

 

I'd be encouraging my guy to look for a new job to replace the old - not quitting and looking, but looking while still working.

 

Sounds like this is one business that is not only (likely) getting tax cuts, but figuring out they should grab their workers' cuts for themselves too.

 

 

THis is a huge RED FLAG.  I hope your dh is looking.

 

 

 

 

He isn't looking yet.  He may in the  near future.  It is complicated.  DH is in a very unusual situation.  He is actually paid hourly even though his position would normally be a salaried position.  Previous CFO knew that DH could work 168 hours per week and still have things to do and he works with several other departments so she protected him by keeping him on an hourly wage. The CEO and the CFO both found DH's skills unbelievably beneficial.  He saved the company a ton of money by doing things himself that they always outsourced.  He's just brilliant.  He was taking on many tasks that they outsourced for $300-$500/hour.  Because he saved them so much money, they increased his pay and position accordingly.  Unfortunately, they both left within the same 2 month period of time for other job offers.  In comes a new CEO and CFO at the same time, and all they see is a current running budget and current wages.  CEO sat down with DH and compared what he makes annually to others in our area and says that DH is way overpaid.  What he can't take into account is that DH's skillset and ability to save them money is so much higher than those in similar positions.  They are still outsourcing most things because they have no ability to do what DH does.  They have no concept of how much DH has saved them.  Prior administration knew that he was a HUGE asset to the budget overall, while this CEO stepped in with the agenda to cut salaries.  New CEO really wants DH on a salary (so that he can work him that 168 hours per week without paying for it) but the salary will be about $30,000 less than he is making now.  He has also begrudgingly offered DH to stay on his hourly wage without a raise, but cap him to 40 hours a week which will cut us about $20,000/year.  DH is inclined to take the option to stay hourly, for obvious reasons (less cut and they can't work him like a slave).   DH is just concerned that they will expect him to magically work on the same budget as well, when he will now need to fall back on hiring some outside sources again to get his job done in 40 hours/week.  Overtime was just apart of his routine before.  He was scheduled for it, they budgeted for it...because DH was saving them so much money.  Now, it totally freaks this new guy out.

 

 

ETA - I know what you are all going to say, DH should fight it all.  The first negotiation, DH did push against it and that is why he is being offered now to stay hourly.  DH is not a negotiator.  He is not a fighter.  He says, meh.....I'll work less.  I'll plant a larger garden, haha.  He's just that way.  He won't fight too hard.  Period.  

Edited December 29, 2017 by Attolia

[Hilltopmom]

Sounds like they’ll actually still expect him to get just as much done, but in 40 hours and then be upset when he doesn’t.

I’d Start looking for a new job. Sorry.

 

Hopefully another company will appreciate his skill set too

[DawnM]

He isn't looking yet.  He may in the  near future.  It is complicated.  DH is in a very unusual situation.  He is actually paid hourly even though his position would normally be a salaried position.  Previous CFO knew that DH could work 168 hours per week and still have things to do and he works with several other departments so she protected him by keeping him on an hourly wage. The CEO and the CFO both found DH's skills unbelievably beneficial.  He saved the company a ton of money by doing things himself that they always outsourced.  He's just brilliant.  He was taking on many tasks that they outsourced for $300-$500/hour.  Because he saved them so much money, they increased his pay and position accordingly.  Unfortunately, they both left within the same 2 month period of time for other job offers.  In comes a new CEO and CFO at the same time, and all they see is a current running budget and current wages.  CEO sat down with DH and compared what he makes annually to others in our area and says that DH is way overpaid.  What he can't take into account is that DH's skillset and ability to save them money is so much higher than those in similar positions.  They are still outsourcing most things because they have no ability to do what DH does.  They have no concept of how much DH has saved them.  Prior administration knew that he was a HUGE asset to the budget overall, while this CEO stepped in with the agenda to cut salaries.  New CEO really wants DH on a salary (so that he can work him that 168 hours per week without paying for it) but the salary will be about $30,000 less than he is making now.  He has also begrudgingly offered DH to stay on his hourly wage without a raise, but cap him to 40 hours a week which will cut us about $20,000/year.  DH is inclined to take the option to stay hourly, for obvious reasons (less cut and they can't work him like a slave).   DH is just concerned that they will expect him to magically work on the same budget as well, when he will now need to fall back on hiring some outside sources again to get his job done in 40 hours/week.  Overtime was just apart of his routine before.  He was scheduled for it, they budgeted for it...because DH was saving them so much money.  Now, it totally freaks this new guy out.

 

 

ETA - I know what you are all going to say, DH should fight it all.  The first negotiation, DH did push against it and that is why he is being offered now to stay hourly.  DH is not a negotiator.  He is not a fighter.  He says, meh.....I'll work less.  I'll plant a larger garden, haha.  He's just that way.  He won't fight too hard.  Period.

 

I get it. 

 

Is there any chance those bosses who know his worth and have left, have job openings where they are?  That is how I have gotten jobs in the past, you know, who you know vs. what you know type of thing.

[Granny_Weatherwax]

If I'm reading correctly, the loss is the overtime pay and not base pay. Your DH was benefiting from a generous CEO and, unfortunately, the CEO playing fast and loose with the pay structure caught up with them(esp your DH). If your DH has a good relationship with the CEO & CFO, both of whom recently left for new jobs, I would suggest he contact them and see if they are hiring in their new companies. They know your DH's skill set and have gone to bat with him in the past. They may be able to find a place for him or help put him in touch with a headhunter.

 

I'm sorry you and your DH have to go through this. It stinks.

Edited December 29, 2017 by Scoutermom

[displace]

I wouldn’t insure a new driver unless absolutely necessary (needs to commute to college). Car insurance, maintenance, etc, easily can absorb half that amount depending on your insurance rates. For a teen to work, likely they’d make enough to cover the insurance and car costs and that’s about it, which I’d consider a negative if it’s taking away from studies or extracurriculars.

[bettyandbob]

I've been increasing my hours over the last few years. As I've increased work dh has stepped up what he does at home. I say this because some of you have said you were hesitant to add work or add hours because you feel stretched. When I'm working, dh is grocery shopping, making dinner or doing other stuff that keeps us going. Don't think you have to.kerp doing all the home stuff if you are picking up work to help the family Budget.

[importswim]

Dh took a 60% pay cut this year to chase his dream job. Right now we are pulling money from savings every month to cover the deficit but that will run out by March or so.

 

Other than DH picking up extra work I can't see where we can add income and not majorly sacrifice family life. DH is only home around 8 days a month as it is (ETA: he works out of state) and I am the constant/steady at home person for my kiddos (and obviously, we homeschool). I also an not able to handle a lot of extra demands on my time (outside of the family).

 

This means that we have to decrease costs and try to get everything down as much as possible. Unfortunately, his take home pay after taxes is quite low so even without all of the extras (cable, large cell phone bills, etc...) we are barely covering our expenses every month. 

 

Thankfully, we are debt free (we still have a mortgage but it's very low for our area) and so that takes a small part of the pressure off. Also, the future opportunities in this job all look good and it's a steady income rise over time and then jumps exponentially when he gets more time/experience so it's not all bad. Paying the dues for starting over.

 

I am trying to get our grocery expenses down, and while it might not do much it does make me feel that I am doing SOMETHING!

Edited December 29, 2017 by importswim

[shawthorne44]

This is why new managers shouldn't make changes right away.    They just shot themselves in the foot, and it will take awhile for them to know.  

 

eta: typo

Edited December 29, 2017 by shawthorne44

[City Mouse]

I found out two weeks ago that my current job may end in June, but I won't know for sure until around April. I am looking at other options, but who knows if one of those will work out. Most likely I will have to take a job that pays significantly less, but this may be the time to switch career fields.

Starting Jan 1st, we are cutting the household budget as much as we possibly can. On the upside, my DD22 just got her first "real" job and will start contributing to household expenses. My DS15 has a summer job lined up already which will help with the insurance when he gets his drivers liscense this summer. He made need to drive himself to school starting in August, so we can't put off the drivers liscense.

[RootAnn]

Sounds like they’ll actually still expect him to get just as much done, but in 40 hours and then be upset when he doesn’t.

This. Or, they will balk at his budget going up because he needs someone else to do the stuff he used to do on overtime.

 

I, too, would quietly be helping DH update his resume and not-so-quietly encourage him to reach out to his contacts for other jobs.

 

On the money front, do you guys have a written budget with actual spending? It is much easier to see where you can trim when you know where the money is going. We were much stricter a few years ago than we are now (as DH now actually gets overtime pay), but I still spend my time tracking our spending.

 

In our house, DH would do the grocery runs because I am the one who picks up unneeded extras. We'd have a written menu each week (slipped off one this lately!). And, I would have a strict limit on Amazon/online purchases (because we always need something else) per month.

 

We wouldn't be able to cut $20k, but that together might be $2k. (20K is just too much percentage wise of our total budget. The only way to cut that much would be to put less in our retirement and kids' education funds.)

 

ETA:  I looked. 20K is 1/3 of our budget (not including what we put into retirement, but including what we put in our kids' education funds).

Edited December 29, 2017 by RootAnn

[creekland]

He isn't looking yet.  He may in the  near future.  It is complicated.  DH is in a very unusual situation.  He is actually paid hourly even though his position would normally be a salaried position.  Previous CFO knew that DH could work 168 hours per week and still have things to do and he works with several other departments so she protected him by keeping him on an hourly wage. The CEO and the CFO both found DH's skills unbelievably beneficial.  He saved the company a ton of money by doing things himself that they always outsourced.  He's just brilliant.  He was taking on many tasks that they outsourced for $300-$500/hour.  Because he saved them so much money, they increased his pay and position accordingly.  Unfortunately, they both left within the same 2 month period of time for other job offers.  In comes a new CEO and CFO at the same time, and all they see is a current running budget and current wages.  CEO sat down with DH and compared what he makes annually to others in our area and says that DH is way overpaid.  What he can't take into account is that DH's skillset and ability to save them money is so much higher than those in similar positions.  They are still outsourcing most things because they have no ability to do what DH does.  They have no concept of how much DH has saved them.  Prior administration knew that he was a HUGE asset to the budget overall, while this CEO stepped in with the agenda to cut salaries.  New CEO really wants DH on a salary (so that he can work him that 168 hours per week without paying for it) but the salary will be about $30,000 less than he is making now.  He has also begrudgingly offered DH to stay on his hourly wage without a raise, but cap him to 40 hours a week which will cut us about $20,000/year.  DH is inclined to take the option to stay hourly, for obvious reasons (less cut and they can't work him like a slave).   DH is just concerned that they will expect him to magically work on the same budget as well, when he will now need to fall back on hiring some outside sources again to get his job done in 40 hours/week.  Overtime was just apart of his routine before.  He was scheduled for it, they budgeted for it...because DH was saving them so much money.  Now, it totally freaks this new guy out.

 

 

ETA - I know what you are all going to say, DH should fight it all.  The first negotiation, DH did push against it and that is why he is being offered now to stay hourly.  DH is not a negotiator.  He is not a fighter.  He says, meh.....I'll work less.  I'll plant a larger garden, haha.  He's just that way.  He won't fight too hard.  Period.  

 

I'm joining the others in suggesting he get in contact with the old CEO and CFO and see if they might happen to want him where they work now.

 

It's common for talented/good employees to follow each other.  I suspect it's often due to reasons like this.  New folks come in and think they know everything when they don't.

[Ann.without.an.e]

I get it. 

 

Is there any chance those bosses who know his worth and have left, have job openings where they are?  That is how I have gotten jobs in the past, you know, who you know vs. what you know type of thing.

 

 

If I'm reading correctly, the loss is the overtime pay and not base pay. Your DH was benefiting from a generous CEO and, unfortunately, the CEO playing fast and loose with the pay structure caught up with them(esp your DH). If your DH has a good relationship with the CEO & CFO, both of whom recently left for new jobs, I would suggest he contact them and see if they are hiring in their new companies. They know your DH's skill set and have gone to bat with him in the past. They may be able to find a place for him or help put him in touch with a headhunter.

 

I'm sorry you and your DH have to go through this. It stinks.

 

 

I'm joining the others in suggesting he get in contact with the old CEO and CFO and see if they might happen to want him where they work now.

 

It's common for talented/good employees to follow each other.  I suspect it's often due to reasons like this.  New folks come in and think they know everything when they don't.

 

 

 

 

They both took jobs out of state - like far, far out of state.  We aren't inclined to move right now.

[DawnM]

They both took jobs out of state - like far, far out of state.  We aren't inclined to move right now.

 

Shoot.

 

Any chance they have some local contacts and could put in a good word?  I have gotten a job that way too.

[sassenach]

They both took jobs out of state - like far, far out of state. We aren't inclined to move right now.

Is the type of stuff he does telecommutable? He may be able to pick up contract work for them (especially if he’s only working 40 hr a week for the regular job).

[creekland]

I'm not sure if it's increasing substantially, but I do think we hear about it more now because a) social media and more news and b) people share more personal information than they did in earlier decades. I doubt 30 years ago if anyone would have been broadcasting their salary or a pay-cut or layoff to everyone. But now people think nothing of it, so we hear about it a lot more than before. 

 

In my world - since my youth - broadcasting salaries wasn't common, but mentioning unusual pay raises was (generally with thankfulness).  We also knew who was laid off - esp since they networked for new jobs.  Maybe they kept pay cuts to themselves, but my IRL world is nowhere near as private as many folks' on the Hive, so I find it doubtful.  My family and our closer friends (and even co-workers though the years) share info a lot.  We aren't very "hush hush" or "keep it all to ourselves" folks - good, bad, and ugly.  For me, that's what community is.  We're there for each other through it all. It may be a rural trait. I like it that way.

[goldberry]

If I'm reading correctly, the loss is the overtime pay and not base pay. Your DH was benefiting from a generous CEO and, unfortunately, the CEO playing fast and loose with the pay structure caught up with them(esp your DH). 

 

It's interesting that we consider it "generous" that he was actually being paid what he was worth (because of all the money he was saving the company) and for the hours he was actually putting in (rather than working him to death on a salary just because they can).

 

I agree we have reached a point where that is no longer the case in most companies.  But I don't consider it generous, I consider it fair.  Our current corporate environment of "use until they drop and then throw away" workers is disgusting.

[goldberry]

Is the type of stuff he does telecommutable? He may be able to pick up contract work for them (especially if he’s only working 40 hr a week for the regular job).

 

He should absolutely ask about this even if he thinks it's not likely.  When we moved in 2005, I was able to continue working contract for my previous company.  It was a huge benefit to me.  Asking never hurts!

[Guest]

No incone hit but our crappy health insurance is going from $900/month to $2100/month. So that sucks but it was expected.

[Carol in Cal.]

Dh is not getting a raise next year and his bonus is a tenth of normal.  This was entirely unexpected, not based on reviews or anything.

 

This adds up to a pretty significant cut in pay next year compared to this year.  However, I expect to expand my business this year, so I think we will be OK.  And also our college expenses for DD are done!

 

I'm not saying this AT ALL to say that it's comparable to the OP, because it's not; just to add a data point to the increasingly large portrayal that companies are cutting back on what they are paying.

[SamanthaCarter]

My dh was let go Friday before Thanksgiving. They told him in passing he was one of the highest paid of the colleagues in his department. That has me worried that any job he finds here won’t pay as well as he had. We’re not considering moving just yet as that would be a whole other set of financial hits. Not sure how we’re going to hold things together.

 

 

Sent from my iPhone using Tapatalk

[readinmom]

Reading your post is like visiting our past...sorry this is happening.  Dh's company shut down, and it took him two years to find a job at 1/2 the pay, way overqualified for.  It was humbling. The biggest sticker shock was compensating for insurance, company car, fuel allowance.  It happens, but none of us are really prepared to deal with the financial and emotional implications.  

 

If you haven't read Dave Ramsey or similar plan, check out Pinterest for ideas.  There may be something in your budget that can be worked with.  We also added a teen driver during this transition, and it was $80-100 dollars to add him to our insurance.  It was worth it to have another driver in the family.  

 

Wishing you the best in the new year  :grouphug:  :grouphug:  :grouphug:

[Carol in Cal.]

The most frustrating thing to me in the process of "finding money" was how much of the expenses are absolutely fixed--or going up each year.

 

We can't save any more on our health insurance.  I looked into it.  The next cheapest plan is $6000 a year more.  Our monthly bill went up $110 a month 2018 over 2017.

 

We can't not pay our property taxes.  This is the second largest single expense.  Last year they were $7500.  I anticipate that going up as the taxes reflect the increase in real-estate value, an increase that does me no good until I go to sell. :::scowl:::

 

Together, they are 25% of our total expenses for the year, and I can't do a single thing about them.

Right.  This is the most alarming and difficult thing about planning for retirement spending.

[plansrme]

Is anyone else reading this aghast at just how many Boardies are dropping income next year?  Esp when in the same job, but even if they have to change to a different place?

 

That really doesn't sound like it bodes well.

 

I know a relative of mine was just laid off from a state job (thanks NY! - Merry Christmas to you too!) with 19 years of service and no bad reports or evaluations.  There was no severance pay or warning - not even the typical 2 week warning.  She just showed up on a Monday (right before Thanksgiving) and was told (by a very sad boss) that powers that be in Albany said she was done.  No more information than that.  She's not union and it seems they didn't want her to reach 20 years with its vested retirement.  Having talked about it with others, that also doesn't seem to be uncommon.   :cursing:

 

Companies are doing these things.  States are doing these things.  How "common" is it?  And it really doesn't seem to bode well IMO.

 

I don't know how common this is, but those of us who got raises and bonuses this year aren't likely to post, "Hey, help me spend this pay increase!"  My husband got a raise; I got a significant raise last year and a good bonus this year that I did not expect at all, especially because I barely even work.  My husband's raise is going entirely to a charity we support; my bonus barely hit my account before we spent it on a new(er) car for my daughter.  We were planning to buy the car anyway, but this just kept us from having to transfer as much money out of savings.  I don't mean to be insensitive to those who are facing pay cuts or job losses; I am not.  That sucks any way you slice it, and at any level of income.  But it does not at all mean that the experiences we're reading about are universal.  Among my clients, most seem to be in a hiring frenzy and are complaining to me about having too much work and not enough staff.  It's a small sample size, granted, but it seems like this would be a good time as any to look for a job.

[Carol in Cal.]

.  Among my clients, most seem to be in a hiring frenzy and are complaining to me about having too much work and not enough staff.  It's a small sample size, granted, but it seems like this would be a good time as any to look for a job.

This IS a good time to look for a job; but although jobs are fairly plentiful, my sense is that pay has not gone up as much as the low unemployment rate would tend to lead me to expect.

[eternalsummer]

The most frustrating thing to me in the process of "finding money" was how much of the expenses are absolutely fixed--or going up each year.

 

We can't save any more on our health insurance.  I looked into it.  The next cheapest plan is $6000 a year more.  Our monthly bill went up $110 a month 2018 over 2017.

 

We can't not pay our property taxes.  This is the second largest single expense.  Last year they were $7500.  I anticipate that going up as the taxes reflect the increase in real-estate value, an increase that does me no good until I go to sell. :::scowl:::

 

Together, they are 25% of our total expenses for the year, and I can't do a single thing about them.

 

You can't do a single non-drastic thing about them.  If you were in dire straights, though, really dire straights, you could sell the house, move somewhere smaller and cheaper, and ditch the health insurance (not the wisest move if you can pay for health insurance, but an option if there is no money to pay for it).

 

Imagine having a pay cut of $20,000/yr and already not having health insurance or any equity in a home.  That's when your expenses are absolutely fixed (and even then, people cope - move in with family so no rent, take government assistance for health care, etc.)

[mommyoffive]

Ugh.  

 

Not a pay cut here, as we are retired, but expenses rising faster than we were used to spending down our retirement.  I gave our budget a closer eye, ut was not very harsh with myself and cut out about the same amount as expenses rose.  So we are even for now.  The thing that spurred me on was seeing how it added up over the course of a year...$10 a month isn't that much...but you run across a few of those, and add them up over the year...and then you figure that to spend $1000 you have to *earn* that plus the amount of taxes they cut out of it...it's a good thing to take a look at.

 

--Shopped cell phone providers.  Saved $1200 a year.

--Found a much less expensive health club.  (The old one was nicer but it was $$$ because it had a pool...that I never used.). Saved $1200 a year.

--Cut out land-line phone service.  We have our phone for $5 a month now.  We will cut this when my MIL is gone--it is her "medical" phone number.  Saved $500 a year

--Got family Spotify (went from $10 individual to $15 for all of us) and cut the XM radio in my car.  So the difference is $250 saved and a little more hassle getting my music set up when I go for a drive.  But I still have my music!

 

I can't remember what all I cut at this point, but I do remember that we cut about 12% out of our spending by making some small changes...the fact that I can't even remember what they are tells you how small they are!

 

I decided that I need some structure in my life and might as well make some money doing it, so I am starting a side-hustle and we will see if I make any money at that...and I've also started selling (not donating) things we no longer use/need/want.  In December, I made about $800 off Craigslist-ings.  

 

BUT I will say that I think the most important thing your family can do is what others have suggested:  increase income.  I am coming from a different time in my life, and I will tell you that we did a LOT to bring in a lot of cash, and we would be better off had we been more careful how we spent it along the way.  Learning to be content is an enormous life skill.

 

Kudos for selling so much stuff and cutting expenses.  That is huge. 

[eternalsummer]

I don't know how common this is, but those of us who got raises and bonuses this year aren't likely to post, "Hey, help me spend this pay increase!"  My husband got a raise; I got a significant raise last year and a good bonus this year that I did not expect at all, especially because I barely even work.  My husband's raise is going entirely to a charity we support; my bonus barely hit my account before we spent it on a new(er) car for my daughter.  We were planning to buy the car anyway, but this just kept us from having to transfer as much money out of savings.  I don't mean to be insensitive to those who are facing pay cuts or job losses; I am not.  That sucks any way you slice it, and at any level of income.  But it does not at all mean that the experiences we're reading about are universal.  Among my clients, most seem to be in a hiring frenzy and are complaining to me about having too much work and not enough staff.  It's a small sample size, granted, but it seems like this would be a good time as any to look for a job.

 

Yes, I've noticed a similar phenomenon for almost a decade straight on Etsy's user forums: there's always, always, a running thread or two about how sales have gone down, big established shops are having to close, the sky is falling, etc.  Etsy always says revenue, both of the site as a whole and among established shops, is going up.  I know many sellers whose businesses grow steadily, but it is gauche to go post in those threads about how well your shop or your friend's shop is doing (not to mention that sellers who are doing well may not even open threads about how bad Etsy is at the moment, or whatever), so you don't read nearly as many "My shop's revenue has increased 10% over last year!" as "My shop's revenue has decreased by half!" posts.

[eternalsummer]

OP, it's hard to know what you can or should cut without knowing what you're spending.

 

The very first thing I'd do is spend 2 weeks closely examining everything you buy.  Don't necessarily change your habits for a couple of weeks - it's like monitoring what you eat when you are going to start tracking calories. Then you'll have a clearer idea of what small changes can be made.

 

For instance (and I have no idea if this applies to you), we currently eat fish probably twice a week, sometimes 3x, and red meat once every couple of weeks.  I buy a lot of convenience foods like hummus, frozen vegetables, frozen ravioli, preseasoned rice boxes, stuff like that.  If I were trying to cut most of the fat out of our budget, I'd eat red meat once a month and fish once a month; the rest of the time would be beans.  I'd learn to make hummus; I'd buy frozen veg but not the fancy organic ones, just whatever's on sale, and I'd ditch the frozen ravioli permanently.  That kind of thing.  Your expenses will be different than mine, though - for instance, we don't have smartphones so there's nothing to cut there, and we don't go out to eat so there's nothing to cut there, but lots of people can cut both of those expenses out if necessary.