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What would you do?

May 23rd, 2014 at 01:09 pm

So I'm sitting here contemplating my last 3 paychecks and this time they look like they will be my last until my next job or contract comes up.

I'm think this is what I'm going to do but I'm open to suggestions from here (aside from the obvious find a job suggestion I'm already working on that.)

Here's the situation:

I have 3 paychecks left at approx. $1500 each after taxes each give or take a few hundred dollars.

I am married, and he works full time. I have a part time essentially minimum job that will cover my basic expenses plus about $20 if I increase my hours which is very possible to do, so bills would be covered after the contract job goes away and if I pay off my car insurance in full for the 6 months.

I do have an emergency fund that can cover four months of expenses if I do not pay off the car insurance and 6 months of expenses if I do pay off the car insurance in full.

So from the three checks I need to take out bills and car insurance.

That about $820 for bills, $880 for car insurance pre-pay and $300 total from the checks to cover spending expenses so $2000 gone leaving $2500.

Usually I put a whole bunch of this money to retirement and other goals but since these are the last 3 checks it might be best to stretch this cash to make not having gainful employment a little easier.

I could save another 6 months of car insurance pre-pay money from here so that I know I would be good for a year on car insurance and then save the rest to do the dental work I need done. So that would be -$1100** leaving $1400 for dental work (and we have dental insurance.)

I also have some things like car registration etc coming up that I need to pay but I have saved up funds for them.

If you were in this situation what would you do?

(** Car insurance is very expensive here and we've shopped around everywhere else its double the amount. We have low deductibles because its easier to pay out a bit extra each month to insurance than to come up with $1000 since my job situation is what it is.)

7 Responses to “What would you do?”

  1. crazyliblady Says:

    I would continue to make payments on any bills for necessities (food, shelter, credit cards, gas for car, car insurance, utilities, etc.), but back off on savings for house and car down payments until the crisis is over. Also, cut out any expenses that are not absolutely necessary (cable, expensive cell phones, eating out, expensive clothing, etc.). Any money that does get spent on necessities should be put aside in a savings account. What about the upcoming hotel stay referenced on your side bar? I also noticed you have an old medical bill. Could you negotiate a payment plan that fits your budget? The dental sounds like it could be important, so you probably should do that. You can also put Department of Education student loans on deferral. I am not sure about private loans from banks.

  2. DW Says:

    Go with your gut, use $2000 as plan ($820 for bills, $880 for car insurance pre-pay and $300 spending expenses), 1400 dental, but set aside the $1100 in your savings (earmarked for car ins, but as a reserve for the unexpected).

  3. Permanent Temp Says:

    That sound like what I'm doing. All necessities are covered by my current plan. We have a cheap cell phone plan ($70 total for both of us unlimited everything.) No cable, cheapest internet, hardly ever eat out (once a month maybe sometimes). Last time I bought clothes was two months ago a few tanks on sale at Old Navy.

    For the hotel stay I've been paying $25 out of each check to the 0% credit card so it will be paid off by the Feb date of interest hitting it. I would have paid it in full by now but the car loan payoff was more important to me to make it easier to live off of the minimum wage part time job.

    Like I said with the minimum wage job I'd have about $20 left after paying the bills so that Old Medical Bill is probably there to stay. I've saved about $30 for it so far as I had a set amount of each check that I split between saving for dental work and paying off the old bill. It's already in collections it has been for a while. I am trying to save up the amount in full and pay it out when I can, I don't know when that will be. Next time I get picked up for gainful employment I'll make it a top priority.

    I'm going to try my best to not put the loans in deferral though and honestly I'm not sure they'd let me because I'd still be employed. I have never had a low income payment but if they base it on what I've made so far this year or what I made last year I won't qualify so I've made sure to save up enough money to be able to pay them just in case.

  4. Permanent Temp Says:

    Thanks DW. I will do that, always best to keep an open mind!

  5. Another Reader Says:

    With an improving economy, is it time to go after something permanent in your field? In your shoes, I would start looking today. Fire up the resume machine and start working your network. It's going to be tough to buy a house with short-term contract employment income, and having to cover employment gaps keeps you from saving much.

    Negotiate the old medical bill down and pay it. If it's old and about to run the statute of limitations, they should settle for pennies.

  6. snafu Says:

    Your rules are like different but have you explored your entitlement to Unemployment Insurance? If you and employer have been paying premiums on your behalf, you may meet eligibility requirements in spite of secondary part time employment. It's worth the effort to check it out.

  7. Permanent Temp Says:

    snafu - I will check it out but I'm not sure I qualify which is why I saved all the money just in case I don't.

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