Financial Crisis (Help!)

[Jes]

I was just laid off, no notice, no severance. Last month, car repairs ate my entire emergency fund. I've got less than $200, and I don't think I'll see an unemployment check 'til the beginning of next month. How the hell am I going to make rent?

+$200 - Now
+$400 - The next time my fiance gets paid
-$100 - Electric bill due this week
-$1050 - Rent due the first
-$100 - Food, gas, etc.
-------
$650, let's say $750 in 23 days to comfortably make it to the first unemployment check. How the hell am I going to do this in today's economy?

[Sam988]

I don't know, but whining without any purpose isn't going to help

[Savage]

That certainly brings back some memories...

What can you and your fiance do to provide at least $750 of value to people within the next three weeks?

[Pegasus]

I assume you don’t have a credit card? I’m not saying I’m that much better off, but here are a few ideas:

Housesitting, elder sitting (I have a sixteen-year-old relative who used to earn 12.50 an hour sitting with an elderly blind woman who didn’t like being alone), babysitting, pawn shops (which won’t pay you much money), driving people places (I know gas is expensive), eBay.

Is your car already paid for? I learned once when my car was in the shop that I could hold off on making car payments for a month or so. Or was it car insurance payments?

Your car probably eats up the most money. If there is any way possible for you to be car-free, then you could sell it. I know this is an extreme solution...

Create a “membership” website (see ChangingCourse.com).

Best of luck to you!

[Jes]

Originally Posted by Steve Pavlina

That certainly brings back some memories...

What can you and your fiance do to provide at least $750 of value to people within the next three weeks?

Short of anything involving porn or drugs, I'm not sure. I have ideas, but being able to prepare, market and sell them in three weeks?

I offer the most value through music. Busking could work, but it's a big gamble.

[JimC]

I think busking is a pretty good idea though.

Here's a thought. Whether or not you are religious, I would recommend talking to some local pastors and see if they would be willing to let you play for them during church and you could collect donations. Explain to him your situation and see if they are nice enough to help out.

The right people can be helpful if it's evident you are trying your best to make due. Have you looked in to those "cash now" loan places? That could be an option, even though interest is pretty high.

And how well do you know your landlord? What kind of community is it? Some landlords will give you a break if you do some work or something for them.

[Doku]

Originally Posted by JimC

And how well do you know your landlord? What kind of community is it? Some landlords will give you a break if you do some work or something for them.

This might be your best bet... If you have been a good tenant, etc. Good tenants are hard to find, bad ones are hard to get rid of, and if the market is krap, it could sit un-rented for several months.

Originally Posted by Jes

I'm not sure. I have ideas, but being able to prepare, market and sell them in three weeks?

You'd be amazed what you can accomplish in a single day if that's your only job, and it's something that you _need_ to get done. Don't underestimate the power of motivation.

[carenkh]

When I was in a similar situation, I sent e-mails to my friends (and some acquaintances), not giving details, but just saying I was in a place where I needed some money, and asking if they had jobs or errands I could do for them. I signed up and worked a week for a temp agency at a job that paid fairly well, and combined with what I did for my friends - babysitting, yard work, cleaning someone's car!, helping someone paint her house - I more than made what I needed. Little things added up. It might not have been the most efficient use of my time, but it meant I wasn't evicted, and had lights and water.

I also used to bartend, and have been able to sign on to caterers and temp agencies for short-term work - low pay, but usually big tips, especially for private parties.

I don't see where you are - here, it's summer, and an ideal time for busking for tourists. Giving that a go would be *something*.

[{aspiring_to_clarity}]

A temp agency could probably get you a placement quickly and you'd get a check in a week or two weeks. Depending on what type of work you end up doing, two weeks pay could easily be $600. And you could still do odd jobs for friends on the weekends. Being a server at a restaurant could bring you good tips and you could work a four hour shift a couple days a week after your temp job, but only if you are good at it.

Good luck!

[Remiel]

I'd challenge you to find the value in your current situation. Yes it is hard and may remain hard. But what can you do with this new found time to move towards a new direction in life? What if you could find something you love doing and start doing it?

[SomeRandomGuy]

There are a variety of jobs which require little or no experience and can put some cash in your pocket rather quickly. They aren't pleasant, but they are better being evicted. You might consider pizza delivery, working as a day laborer, temp agencies (as was suggested above), offering lessons or tutoring (musical in your case), etc. Given your situation it seems that the key is to 1) do something to generate some money, if it is is a small amount and 2) find jobs that have little lag time before your first payday or better yet pay cash (this is where pizza delivery or even waiting tables would be good, due to the tips).

I wish you the best of luck. I am sure that you and your fiance will find a way through this, and be stronger (both as individuals and as a couple) for it.

[Jes]

Thanks for the suggestions, everyone. I now feel confident that I can find a way through this. Last night, I couldn't fall asleep because I was so worried. But I thought things through and regained my entrepreneurial spirit. I'm ready for this.

[Marty McFly]

Evaluate your skills and abilities - any trades or qualifications? Can you do any DIY jobs? They are always in demand and you can go self-employed.
Mow lawns for $20 an hour...find a bar or restaurant or factory with high employment turnover until you get yourself sorted.

[Blueskied]

Donate blood plasma! A friend did that quite often as a student. I tried it once but my blood was too thick and the machine clogged or something.
Just a few extra dollars. Plus you get free candies and a blood test. :-)

[chopsaw]

First step would be to call the utility companies, landlord, etc and negotiate a change in your current billing cycle. From your original post I don't know anything about your skill set so it's tough to give advice on that front.

Make a list of your saleable skills and write up resumes that will entice an array of prospective employers.

Becoming a tutor, music teacher, open a day care center, dog walker, freelance writer, the possibilities end with your imagination.

Good luck.

[ilovetoday]

The site that pegasus mentioned above has a whole page of ideas - i would list some but everyone is different. The address is
How Do I Find a cool job. Get a life. Dream jobs. Career change resources.

good luck

[NightSpirit]

Just stay calm and gather all the information you can about unemployment insurance before you decide to take just any job. Your benefits may be closer to what you were making than a temp job would be. If you take a temp job and then quit or keep a lower paying temp job for a long time you might reduce any future UI benefits you might be eligible for. The MAX benefit here is around $460 a week before taxes (they can be deferred until tax filing time) and some are allowed to earn another $100 or so a week before losing any benefits. After your allowed amount, they will take dollar for dollar everything you report that you earn.

Be sure to file for unemployment benefits ASAP if you haven't already. You may be able to file a claim online if your state has a website. If you worked less than 24 hrs. last week and can get your claim in before this Sunday night at 12:00, last week may be your waiting week and you might be eligible for a check for next week.

Even if the checks don't get there by the first, there are grace periods and laws that cover eviction. I have had to evict renters before so I know in my state the landlord has to wait the late grace period, usually 5 days, then give a written 10 day notice before before filing for eviction. That will give you an extra 2 weeks to pay the rent plus $50 or so late fees. If an eviction is filed, that will be about another 7 to 10 days to the court date and if the rent plus fees is paid before the court date, the eviction is usually canceled.

Check the laws for your state with the clerk of court office, not to scam the system but to get a firm idea of the time frame you have. Without paying anything now, you'll probably have a place to stay until near the end of August. Surely your unemployment benefits will be coming by then and you can catch up. It is best to talk to your landlord but most go ahead with the process because they can always cancel it if you come up with the money but are ahead of the game if you don't. It's just business so don't let it get you down or take it personally.

This might be a good time to move to a cheaper place or consider renting out a room and charging a month upfront. And there is a good market on that free internet listing site for electronics and video game systems. Just be sure to insist on cash only and meet in public places. Hope it all works out.

[fellowtraveler]

Used to be one around here called "Manpower Inc." This was back in the day, but you got paid every day, in cash. Don't know if they do that any more tho. The blood bank's another good one.

When I used to need labor help I'd check the sidewalk outside the unemployment office. Usually a couple of guys hanging out looking for quick bucks. If you nuttin' else to do at 6 in the morning go hang out there. 'Course for all I know there are no unemployment offices any more, just websites.

Good luck, man. Been there. Careful if you go dumpster diving.

[BenThere]

Hi Jess, I've been through similar scrambles myself. I can empathize. Here's the advice I wish I'd have got at that time.

I suggest you have an action plan. DON'T focus on the negative feelings. DO focus on relentlessly asking the question, "what other opportunities to I have TODAY to make my financial situation more secure?"

Talk to the landlord. Explain you got laid off, and you are filing for unemployment TODAY. Explain that you are starting your job hunt for a new position TODAY. Explain that you expect unemployment WILL cover the rent. Ask if you can get a written OK to pay just the next month's rent in two installments, in case the UI check takes a couple of weeks to reach you.

Talk to the electric company and tell them the same thing. Your fear of immediate shutoff might be unfounded.

Check if legal aid can offer a free half hour consultation about the eviction process and how much time you'd actually have.

Find a Methodist church and ask the pastor if they know of a food pantry in town. If not, if there is a 99 cent store or Wal-Mart, get familiar with boxed rice and canned soup. You can get a bread machine at Goodwill for $10 and make your own nice homemade bread. Dump in a $1 mix and let it make your home smell nice overnight as it cooks.

Look in the phone book for the state economic division. They often have a job-hunting center. These centers often offer free workshops about job hunt techniques, resume writing, etc. They also often have bulletin boards with job listings, and someone who can look up additional job listings that might not be in the newspaper.

Consider using Craigslist to locate a furnished master bedroom suite in someone else's house or apartment for rent for $500. This halves your monthly rent until you're back on your feet financially. Use Craigslist to sell your furniture for a couple hundred books. If you have some incredibly valuable possessions that you just can't bear to lose, rent a storage unit for $100 a month. You'll get your security deposit back when you move out of your current place.

Day labor places might provide some immediate cash. But I think with these changes you can actually see how to get by for a month. That gives you time to go to the library and get the book "The very quick job search" and use its advice to get a new job in 30 days, even when the economy sucks.

You now have a new full-time job: you are a full time job seeker. You have appointments with prospective employers, and otherwise your work place is the employment office.

No movies, concerts, clubs, eating out, road trips, etc. until your income is stable again.

If you can pay to continue any health insurance from your job, do so.

Reach out to family and friends, church if you have one. Tell people you just lost your job, you're looking for a new job in the ... field (whatever it is for you), and if there is anyone else you should talk to you'd appreciate a referral.

[Stephen]

Originally Posted by Jes

I was just laid off, no notice, no severance. Last month, car repairs ate my entire emergency fund. I've got less than $200, and I don't think I'll see an unemployment check 'til the beginning of next month. How the hell am I going to make rent?

+$200 - Now
+$400 - The next time my fiance gets paid
-$100 - Electric bill due this week
-$1050 - Rent due the first
-$100 - Food, gas, etc.
-------
$650, let's say $750 in 23 days to comfortably make it to the first unemployment check. How the hell am I going to do this in today's economy?

You might not appreciate this, but you are in a position of awareness.

Acute awareness of how fragile people's idea of financial safety is.

You'll make it out of this rut I'm sure. What is more important is what you are going to do to avoid it in the future.

Here's my (good) advice.

If all you can do is read these two very short books, you will have the philosophy and the road map to become financially competent whatever your income level.

The Richest Man in Babylon by George S. Clason

Amazon.com: The Richest Man in Babylon: George S. Clason: Books

and

The Automatic Millionaire by David Bach

Amazon.com: The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich: David Bach: Books

Listen to me. Seriously. I know what I'm talking about. I have worked on the front line, in the trenches so to speak, of the Financial Services industry for over a decade. These are all you need. Complicate things at your peril.

All the best.

[ellie]

Originally Posted by Sam988

I don't know, but whining without any purpose isn't going to help

pfftt, that was really helpful.

How did you go Jes?

[Doku]

Jes,
We've just passed the one week mark. Got an update?

[Jes]

Thanks again for all the input. I am happy to announce that I have come up with almost all the money I need to get me through. Here's how it adds up:

Selling unnecessary assets - $250 cash
Piano lessons - $165
Day labor - $120 cash
Stimulus check (GOOD TIMING!) - $325

I have also set up some projects that will generate income over a longer period of time (added AdSense to my web site, launching eBay store for the piano dealership/studio I give lessons from).

I could get used to this.

[SomeRandomGuy]

Originally Posted by Jes

I could get used to this.

It sounds like this could turn out to be a blessing in disguise. Congratulations on getting things under control, and good luck.

[{aspiring_to_clarity}]

Cool, Jes!

Keep up the great work...

[BenThere]

Thanks again for all the input. I am happy to announce that I have come up with almost all the money I need to get me through.

I have also set up some projects that will generate income over a longer period of time

That's wonderful! I'm glad to know that you can spot a light at the end of the tunnel.

Over the longer term, what would you really love to do as a way to make an outstanding contribution that's rewarded by an outstanding paycheck? Or is that too far ahead for you to think about just yet?

[Jes]

Originally Posted by BenThere

That's wonderful! I'm glad to know that you can spot a light at the end of the tunnel.

Over the longer term, what would you really love to do as a way to make an outstanding contribution that's rewarded by an outstanding paycheck? Or is that too far ahead for you to think about just yet?

Oh, I've thought about it plenty. Here are the three things I would like to do:

1. Compose mostly religious music. Hymns, et al, not contemporary popular song. I don't expect to make much money this way, but who knows.
2. Perform. Everything from concerts of my own works to busking on the street. I think I can earn a living this way.
3. Teach. This is where I feel I can earn substantial income. I would like to grow my private music lessons practice to a point where I am no longer just teaching beginners and casual learners, but guiding serious performers and maybe even teaching at the university level.

[1000feet]

That's a great way to think - it's hard to make a lot of money from composing or performing music because of the competition, but if you're good you should be able to do very well as a teacher.

[Doku]

Originally Posted by Jes

3. Teach. This is where I feel I can earn substantial income. I would like to grow my private music lessons practice to a point where I am no longer just teaching beginners and casual learners, but guiding serious performers and maybe even teaching at the university level.

Consider checking with local universities now. Many universities have a roster of people from the local community that are available to be tutors for their students. Also, depending on what instrument(s) you are best with, there may be demand at the school. Especially if you are willing to work evening classes.

[persephonevii]

Originally Posted by Jes

Thanks again for all the input. I am happy to announce that I have come up with almost all the money I need to get me through. Here's how it adds up:

Selling unnecessary assets - $250 cash
Piano lessons - $165
Day labor - $120 cash
Stimulus check (GOOD TIMING!) - $325

I have also set up some projects that will generate income over a longer period of time (added AdSense to my web site, launching eBay store for the piano dealership/studio I give lessons from).

I could get used to this.

Awww, that's great. That really is. Congrats. Mmmm... motivation really is a powerful thing.