How should I triage my finances right now?

October 21, 2015 2:02 PM

I got laid off. I'm flat-ass broke and unemployed. Which action items should I tackle first as I try to sort through this?

Moved to an expensive new city for a tempting new job. Last hired/first fired. I've got 8 months left on my lease.

Expenses:
Rent: $1065/month, November-June.
Credit card debt from moving here in the first place: $3,500.
Utilities etc.: ~$300/month
Car insurance: $360 in November, covers November-May
Student loans: $5000, deferred until May. Lowest priority right now.
Meds/food/litter for pet cats: $60/month? Could save if I bought flea meds in bulk, but I just don't have the money to invest right now.
Human food: Generally covered by government assistance, although it's a tight fit.

Income:
I had an interview this morning for a barista position at Starbucks which may or may not result in $8/hr? Would barely cover rent and utilities if I somehow got 40 hours/week.
I have just enough in my checking account to cover the November rent.

I was previously listed as an independent contractor and so I don't believe that I qualify for any kind of unemployment assistance?

If I can successfully re-let my apartment to somebody else (I'm losing hope; it's been listed for two weeks with no significant interest) then I could move in with family and get back on my feet, but it's a cross-country move (I *really* put my hopes into this job) and I'm not even sure that I could save up enough for a U-Haul at this point. I'm not sure what to tackle first (can't break the lease - my parents co-signed, and we don't have a good relationship in general, so I'd be VERY ashamed to tell them that this job didn't work out), how best to get the apartment re-let (or if I should even be putting my energy into that option?), how to deal with stress and the creeping existential fear that I'm going to be In Debt Forever, etc. I'm mostly struggling to come up with an action plan and put tasks into some kind of logical order.

Side note: Sex work isn't a good fit for my personality/mental state right now.

posted by revi to Work & Money (19 answers total)

Response by poster: Addendum:

Location: US, Georgia, North Atlanta
posted by revi at 2:11 PM on October 21, 2015

First, what type of work was the job that made you move?
posted by artdrectr at 2:11 PM on October 21, 2015

Cut your utilities. Cancel cable and internet, use the internet on your smart phone data plan or at a library until you get back on your feet. Cut down on energy usage as much as you can.

Pay your rent -- staying housed with a fixed stable address is a top priority. Are you in a position to discuss the situation with your landlord?

Car insurance is kind of non-negotiable unless you're in a position to sell your car and rely on public transit, which most people aren't.

Pay only the minimum on your credit card for now.

Food pantries for whatever you can get.

Anything you don't need that you could sell for quick cash? Some second-hand clothing places will even pay for name-brand or unusual clothes.
posted by erst at 2:21 PM on October 21, 2015

File for unemployment right away and let them figure it out. They can say no way, but there's no point in you rejecting yourself on their behalf. There will probably be a week where they don't pay you, but start meeting the requirements, keeping track of all of your job contacts (names, times, places, nature of contact, did you submit an application/resume). Worse cast scenario: you don't get unemployment and you applied for half a dozen jobs.

Don't neglect non-day shifts at other places. Supposing you qualify for unemployment and still get some work (either low-paid or part time), you may still get some assistance since you'd be making much less.

Swallow your shame, as much as possible (I know how it feels, I was there 7 years ago), and get the word out that you're out of a job. Your friends and family will keep an eye out for jobs for you. Drop a line to any contacts at your recent job, and exploit any placement services or assistance they offer.

I don't see health coverage on your list. Put it on your list.
posted by Sunburnt at 2:24 PM on October 21, 2015 [2 favorites]

Do your cats definitely need to be on flea meds? Mine is indoor-only and the vet said that flea treatments were optional. If they are indoor/outdoor, consider keeping them indoors only and then continuing the flea treatment for one month.
posted by serelliya at 2:38 PM on October 21, 2015 [1 favorite]

Don't cut internet. That's the vast majority of job applications, and if you are spending as much time as you should job hunting, you'll demolish your data and have ridiculous overages on mobile. Choose a slower plan, but don't cut it completely.

I'm just pointing this out because it's horrible advice from well-meaning people who have no idea.
posted by Aranquis at 2:38 PM on October 21, 2015 [17 favorites]

It's not much, but you can apply for pet food assistance (they probably also have litter) here: http://www.petbuddiesfoodpantry.org/#!pet-buddies-pet-food-assistanc/csgz

Can you offer a couch as an AirBNB for irregular revenue? I mean, a couch for $30/night isn't much, but it's $30 you don't have.

You may not qualify for unemployment but you will probably qualify for TANF (food stamps) and possibly even emergency cash. Go to your local office and apply for everything, the worst thing that will happen is they say no. Come prepared with layoff notice, proof of address, two forms of ID, etc.
posted by juniperesque at 2:39 PM on October 21, 2015 [5 favorites]

If your not driving your car to work every day your insurance rates should go down. Call your agent and discuss how you can reduce your rates.
posted by Confess, Fletch at 3:31 PM on October 21, 2015

Call your insurance company and see about switching to a monthly payment, as opposed to paying 6 months' worth in advance.
posted by homodachi at 3:52 PM on October 21, 2015 [2 favorites]

Roommate? Airbnb like mentioned above?

Call your utility companies and negotiate. Call your credit card company and negotiate. Landlord, same. Car insurance, same.

Food pantries, yes. Eat basic, simple food. Animal food pantries, yes.

Rent is first priority.

Babysitting? Pet sitting? Dog walking? Temping?

If you do end up having to move, I would try as dang hard as possible to not need a uhaul.
posted by Ms Vegetable at 4:18 PM on October 21, 2015

Hit up all the places that might be hiring for the holidays now: retail places, Fed Ex...

Also, I'd consider confirming your landlord won't just let you walk away from your lease. Evictions are such a PITA that "how about I just leave now?" might tempt some people.
posted by salvia at 5:07 PM on October 21, 2015 [1 favorite]

If you do get the job at Starbucks, they allow you to pick up hours at any store after you're trained. I used to rely on that to get over time and to work while traveling. Also, the tips are decent and should get you at least $50+ on payday.
posted by smashface at 5:18 PM on October 21, 2015 [1 favorite]

1099 Contractor is an IRS status, which may or may not mean the state doesn't consider you an employee. My wife was laid off after 60 days with a foreign company "as a contractor," however the state of VA determined she was treated more like an employee than a contractor, and she qualified for unemployment. Generally speaking, if the company controls your workday you are an employee, regardless of how they pay you.
posted by COD at 5:35 PM on October 21, 2015 [2 favorites]

1) File for unemployment. See what happens
2) Get a roommate if at all possible - this will also help you with your utility expenses.
3) Sell anything you have that you are willing to part with.
4) Drive for Uber if you have a serviceable car
5) Call Geico to see if you can get lower insurance rate
6) Those utilities sound really high. If possible, go with minimal internet connection, definitely cut any tv service.
7) You did not mention what kind of car you have, but if you have significant equity in it consider selling it and buying something older but reliable such as a Camry.
8) Waitressing will likely pay much better than working at Starbucks. You might start there.

As to debt, $8500 seems like a lot but from your vantage point, but it is surmountable. Lots of people on this site have much more debt. I am really sorry to hear about your current challenging circumstances - I think things will improve soon but it sounds very uncomfortable. kind regards, jcw
posted by jcworth at 6:33 PM on October 21, 2015

I'd say that keeping phone (and thus internet) is your #1 priority--it's virtually impossible to get a job without a) online applications/listings, and b) a phone number to be reached at.
posted by feckless fecal fear mongering at 7:46 PM on October 21, 2015 [1 favorite]

You will get through this. Pay your rent for November now, and plan on having a retail holiday gig (try FedEx or UPS first- better pay) by the end of Nov to pay for January rent. However, that won't come in with enough time for December rent so you need an ASAP plan to get $1100 this month. You should clean up your place and Airbnb your place every weekend. Meanwhile, get a sleeping bag off Craigslist and go camping or stay with a friend while it's rented out. (You can rent the place while your cat stays there; I suggest clarifying with prospective renters that you'll be by between 10-11am for feeding and cuddles.) That should net you about $700-800, meaning you'll need to scrape together $300 in addition to Airbnb to cover December (remember that January will be covered by your holiday job).

To earn that $300: Sign up for www.rover.com to get started with pet sitting. If you're staying in town over Thanksgiving, you should be able to charge a premium for pet sitting-- just try to squeeze a few pet sitting jobs in over the next week or two (at low new-to-the-market rates) so that you'll have had a few customers who can rate your services. Higher ratings = higher pay.

Can you sell anything?

Over the holidays, will you see a family member who you can ask for help?
posted by samthemander at 8:33 PM on October 21, 2015 [2 favorites]

There is a great exhaustive comment on this topic by Jane the Brown but I am on my phone and can't find it.
posted by ian1977 at 10:53 AM on October 22, 2015

Here it is...
posted by ian1977 at 10:55 AM on October 22, 2015

http://ask.metafilter.com/176830/How-does-one-go-for-months-without-a-job-and-avoid-homelessness#2544710
posted by ian1977 at 10:56 AM on October 22, 2015