I could lose my job next year

ForeverAwake

Hello all.

I found out they’re reviewing my job contract next summer, and there’s a 50% chance of losing my job, so I’m putting a plan together now for worse case scenario. Obviously, I will work hard to keep it, but I need to able to support myself for a while if I lose my income to pay; my rent, water, gas & electric, food, phone bill etc without the need to borrow or reply on others.

I will take 4K of savings with me into 2018, which are savings from this year. I was planning driving lessons in Jan. Passing my test and getting a car on finance was my goal in 2018. I walk to work so the driving is not a must, but a personal goal.

If I forego the driving lessons, I’ve calculated I will reach 10k of savings by end of summer 2018 at my current savings rate. This will be a huge cushion if I do end up losing my job.

What does everything think? Should I have the driving lessons in January or hold off til next summer to allow myself a larger cushion of savings until I know what’s happening with job?

Hedgehog99

I'd advise against learning to drive until you will have access to a car - if you pass your test and then don't drive for a while, you might be out of practice or lose confidence. Since you can walk to work, and having savings is important to you, prioritise that for now.

pjcox2005

Hedgehog99 wrote: »

I'd advise against learning to drive until you will have access to a car - if you pass your test and then don't drive for a while, you might be out of practice or lose confidence. Since you can walk to work, and having savings is important to you, prioritise that for now.

I'd probably go the opposite and suggest you keep the lessons going until you've passed. If you do find yourself out of a job next year, then I would expect being able to drive (and you could buy a cheap car then) will be a big asset in opening up the opportunities available for you rather than being limited to close by (unless you're in London for example with good public transport).


Otherwise planning now just in case is great, and could be a real opportunity if you make the savings and the contract is renewed. Good habits to be in.

marliepanda

It could go both ways.

a) Keep saving to have a nice cushion if you do lose your job

b) learn to drive and get a car and potentially widen your search area for a job

Robin9

I go for the Driving Lessons - a future new job might require you to drive.

Neither 4k or 10k is a fantastic sum - its a useful short term buffer - but you cant live off it for long.

NineDeuce

I would just look for another job..... If they cant guarantee your position, neither should you.

IAmWales

Robin9 wrote: »

I go for the Driving Lessons - a future new job might require you to drive.

Neither 4k or 10k is a fantastic sum - its a useful short term buffer - but you cant live off it for long.

£10K is enough for some to live on for a year, and more savings than many will have in a lifetime!

How long have you been with the company OP, is it worth hanging on for the redundancy pay? Will a driving licence improve your job opportunities significantly?

trailingspouse

+1 for learning to drive.

Don't think of it as a cost, think of it as an investment.

If the worst happens, chances are you'll need a car for getting to your next job.

You don't have to pay a fortune for a car, and if you want one on finance you can get a personal loan (depending on your credit rating) rather than the much more expensive car finance offered by dealers.

How much were you planning on spending on driving lessons? I really don't think it would make that much of a dint in your savings, but would broaden your options enormously.

ScorpiondeRooftrouser

NineDeuce wrote: »

I would just look for another job..... If they cant guarantee your position, neither should you.

^^ OP, absolutely do this. Is there some reason you think you won't be able to find another job in the six months available?

TBagpuss

Definitely start looking aroud for another job.

In terms ofthe driving lessons, I think this depends on what other work is likely to be available. If you live in a large town or city and have access to good public transport links then being able to drive is much less likely to be an issue in terms of finding / being able to accept a new job than if you live in a more rural area, or if job opportunities are scarce.

I personally would suggest getting the lessons and start to plan with a view to being able to buy a car (if only a cheap runaround) if you need to be able to drive when you do find a new job. However, if you live somewhere that diving is unlikely to be an issue in finding / getting to any new job then you could instead give yourself a savings goal and only start lessons when you pass that goal, whether the figure you set as a goal is (say) 3 or 6 months income, or enough to live of for 3/6 months if push comes to shove.

getmore4less

ForeverAwake wrote: »

Hello all.

I found out they’re reviewing my job contract next summer, and there’s a 50% chance of losing my job, so I’m putting a plan together now for worse case scenario.

when the future is uncertain cash is king up to benefits threshold.
see below...

some key info.

How long have you worked there? (redundancy)
Notice period?
type of contract?

I know someone that works schools and this happens a lot as some jobs are only funded for a year so every year around June they are in a waiting game to see if they have a job in Sept.


I think you should take the opportunity to explore other options, you may find that there are better jobs out there and this is the push you need to go find one of them.


..........................
on the finance side the debtfreewannabee board is probably the best place to have a SOA reviewed for trimming spends.

http://forums.moneysavingexpert.com/forumdisplay.php?f=76
http://www.stoozing.com/calculator/soa.php

if income drops you need to have a lean set of outgoing now is the time to start dropping and reviewing all the contractual payments to get them down or eliminated

things like lower/PAYG phone contracts no SKY....


On the learn to drive front I would review the local job market first and see how much it will help.