# About to be made redundant, advice going forward



## Boxie (5 Nov 2008)

*I’ve re-registered under a new name in order to post this (thanks Brendan)*

*Age:*
39
*Partner's age:*
38

*Annual gross income from employment or profession:*
Up until now, E70,000.00, From January – maybe nil………
*Annual gross income partner:*
E50,000.00

*Type of employment:*
Both private sector employees

*Expenditure pattern:*
I’m a ‘spender, he’s a 'saver'

*Rough estimate of value of home*
E445,000 (re-valued c. 4 months ago)
*Mortgage on home*
E280,000.00 - we've been paying our mortgage for 4 years.
*Mortgage provider:*
AIB
*Type of mortgage: Tracker, interest only, fixed rate*
Tracker
*Interest rate*
4.5% - just reduced

*Other borrowings – car loans/personal loans etc*
None
*Do you pay off your full credit card balance each month?*
Yes
*Savings and investments:*
Me, E5,000 savings in Credit Union. Him,  E50,000 – in various savings accounts

*Do you have a pension scheme?*
Yes, I had been paying E850 p/m into a personal pension 
Him - none

*Do you own any investment or other property?*
No.
*Ages of children:*
None.
*Life insurance:*
No

*Other info:*
We’re based in Dublin, both have cars. Our other regular payments are VHI and accident insurance (E10 per month), usual utilities.

*What specific question do you have or what issues are of concern to you?*


I’ve just been told I’ll be made redundant in January (statutory payment only). My area of work is specialised and the sector is experiencing an unprecedented downturn so despite 15 odd years experience, I may well be one of many come January in the same situation.

My employer has indicated that there may be some contract work available on an ad hoc basis after my redundancy. If that’s the case, other employers in the sector may also consider this option, and there may some kind of living to be made.

I’ve never been self employed – I’ve no idea how paying tax that way works (but I will check out  revenue.ie) 

If I only got sporadic work – eg 1 or 2 days a week, by being self employed, would I still be able to sign on on the other days?


What else I should be thinking about? I’m guessing PI insurance. 
Any pointers?

Should I suspend the pension payments?

Any good reason to see if we can go interest only on the mortgage for a while? I don't want to the bank a reason to take us off the tracker rate.



Thanks all.
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## Flax (5 Nov 2008)

I've been on a mad saving spree for a while now, and it has utterly shocked me to see how little someone can comfortably live on. You will certainly be able to both live on the 50k per year salary - this will include your mortgage, bills, and food. You'll need to cut out some frivolous spending though - I got rid of alcohol and junk food (and replaced them with gym and healthy food instead!)

So my only piece of advice to you is this: don't worry, if you cut back your spending you will find you will be able to survive ok.


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## FredBloggs (5 Nov 2008)

I would definitely suspend the pension payments until you've income to go against them.  
Sorry to hear of your news.  Unfortunately its coming more common and could happen to any of us


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## NorthDrum (5 Nov 2008)

Firstly you should save as much as possible (even in the last 2 months!). No point in cancelling your pension contributions if you spend them on non essential items.

Tightening the belt is going to be vital. But I know people who are on less then your partners 50k with more loans outstanding and a higher mortgage.

You should be able to comfortably survive.

No Life Assurance or health insurance, any particular reason why*?*

Do you even have mortgage protection cover (most mortgage providers request that when mortgage is being drawn down.

Tracker Mortgages are a nice product to be in and I expect interest rates to go down tomorrow by at least .25 so you should see savings in your monthly interest.

You actually appear to be in a very healthy position (savings and loan wise).

Im guessing your profession is in the building industry (possibly an architect) but you need not clarify (just putting it out there).

In summary your going to have to roll up your sleeves. You dont really give an indication of what your long term plans are (marriage, children etc) so its difficult for anybody to give you a definitive answer.


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## Boxie (6 Nov 2008)

Thanks for the comments. 

The harsh reality has begun to set in, and even in the last month I've cut back enormously (coffee, lunch etc). And I've informed family and friends Christmas is cancelled 

We have savings - so I'm not panicking (well maybe a bit), I'm just trying to be as sensible as I can.

Insurance wise, yes we have mortgage protection (life cover against mortgage only) and VHI - no life policies - as in my view the need wasn't really there if we've no children??
Long term, we've no plans to have children. 
No income protection, though, one of my regrets in hindsight......

Marriage - not really. Unless tax wise it was the logical thing to do. Not very romantic I know, but we're together over 10 years and know how we feel about each other, and walking down the aisle in a white dress has never been one of my dreams.

Anymore thoughts would be welcome.


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## mell61 (6 Nov 2008)

I've unfortunately been down the redundancy twice over the last 10 years, and know that its a bit of a body blow even if you were expecting it!
Would this be an opportunity to do some further study, re-train?   Could you, as a couple, survive a year or 2 on a single income if there is a potential of a better employment opportunities in the future with differebnt training?  
I moved into a different sector during the downturn in the area I had experience/skills from 2001-03, until the market opened again for jobs in my preferred sector.   Can you apply your skills to something else?   
I think a lot of us are re-evaluating our bills at the moment, my gas bill is being offset by a selection of thermal clothing / electric blanket and a few more layers.     Meals out are being re-invented as home cooked meals.   Cars are no longer the status symbol, there are now an engine that goes with minimal petrol/diesel!
I've found the money manager free software pretty good for evaluating and controlling our money flow, its downloadable, and you'll need to spend a good evening doing a lot of inputting.   When we did it, we were surprised by some of our spending pattern, magazines, lotto, eating out (even just the coffee and scone), it helps you realise where you can easily make savings.
http://www.thezeal.com/software/
In terms of the ad hoc work, i'm assuming this would be as a contractor / self employed.    I'm not sure of the details of what is involved, but know my other half has used an accounting firm called Noone Casey (based just off dame St in Dublin) who do a lot of work with contractors, they might be able to give you the basic guidelines / potential costs.  (i've no affiliation, just know it was a firm recommended to my other half and he was very happy with them for the 4-5 years he used them).    

Good luck


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## paddyd (6 Nov 2008)

Hi Boxie,
I know you mentioned you are a spender, but for your salary, having savings of 5k is only about 2 months of hardcore saving, after perhaps 15-20 yrs of working. Is there anything all that money was spend on over the years that has a resale value if it was to be disposed of? Fancy car or anything like that.
Speaking from experience you'll easily save 2.5k per month on that salary, and for each 1 month you save its equivalent to 2 months of unemployment, while still paying your part of the bills/mortgage.


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