I'm strapped for cash, and am saving up money to move to a cheaper place in a few months. My boss has offered to personally loan me money to help me move. Should I take him up on his offer?
posted by anonymous to Human Relations (19 answers total) 2 users marked this as a favorite
Why I can't move now, and the current plan for saving enough money to move:
I'm a young professional in publishing, a field that pays extremely poorly at my job level, but in a job that I love. Because of recent changes in my personal circumstances, I can no longer afford my current apartment. I can cover the rent and utilities, but must scrimp and save in every other area to do so. I am doing things like washing my clothes in my bathroom and line drying them, making all meals at home, and comparison shopping and using coupons for my groceries in order to stay within my income—this kind of saving is not optional for me at this point. I don't have any unnecessary utilities or monthly expenses (no cable TV, no phone, no Netflix or anything like that) that I can cut, and I am not spending money on anything but necessities (absolutely no funds on entertainment, or eating out, and so forth). Any money not going to rent and necessities is being saved toward moving. Finding a roommate to move into my apartment is prohibited in my circumstances (and that prohibition is within the bounds of New York roommate law—I’ve consulted with a tenants rights attorney).
I want to be absolutely clear: I am at a state of maximum economy at this point. Until I move somewhere cheaper, there is nowhere else that I can save.
In order to move, I need to break my lease, which does not expire until August 2012. As specified in my lease, the fee for early termination of the lease is equal to one month's rent. To move to another apartment here in New York City, I will also likely need to have money on hand for a) two months rent + security deposit for a new apartment, b) broker fees if necessary, and c) moving itself (whether it's a rental truck or a moving service). In order to save the minimum amount of cash needed on hand to move (i.e., cash for the lease breaking fee, no-fee apartment that only requires one month's rent up front, security deposit, and truck rental), at my current rate of savings (which unfortunately has no room for increasing) I need to wait until July or August to move, and later if I can’t find an apartment without a fee or that requires more than one month’s rent upfront.
Also, despite working pretty much non-stop each day from 9 to 7 or 7:30, I happen to be quite behind at my work. In a conversation about this with my boss this morning, we discussed the various things that are behind the pileup. He asked me if there was anything going on outside work that was contributing, and I told him that yes, there was. Under normal circumstances, with this kind of work backlog, I would just buckle down and spend as much time in the office as possible, buying meals rather than making them, and doing laundry in my building’s coin machines or having it done by the Laundromat to save time. But I can’t do that right now. Because of all the things I’m doing to save money, I don’t have time to work more. My annual review (when raises are discussed) isn’t until July.
The question itself:
My boss has offered to personally loan me an as yet unspecified amount of money to help cover the cost of moving so that I could move at the end of April instead of in July or August. If I take him up on it, and use some of the savings from rent to spend more time at the office rather than immediately turning all of the savings back toward the loan each month, I’d be able to pay him back in about four to six months (or as little as one or two if my current landlord returns my security deposit quickly—but I'm not taking anything for granted). He’d have a better performing employee, and I would have a lot more breathing room financially.
I’m very tempted to take his offer. We have a very good working relationship. I have seen him make loans of this sort with authors, and those have worked out fine. It seems likely to me that if we set up a payment schedule, and have a signed agreement regarding the terms of the loan, that this could be a great opportunity for me. But I also know that personal loans are tricky, especially when there is a relationship between the parties, whether familial or otherwise. Is it possible to do this in a way that works out for all parties, or do I just need to keep on course with my original plan? If I do take his offer, what do I need to do to ensure that I handle this properly, and that the loan doesn’t blow up in my face? The loan would need to cover at least $1800 for a move in April to actually happen. If I'm going to do this, how should I discuss specific amounts with him?
I can be reached at email@example.com