Potential setback - redundancy fear

My company announced this week that it will be making a significant number of redundancies in my part of the organisation.

My initial reaction was fear - in fact I was shaking - followed a few hours later by a feeling of euphoria (denial stage?) where I thought I'd walk away with a great redundancy package and straight into a new job with better pay and benefits (certainly deluded by this stage I reckon! :rotfl:). Today I am feeling niether fear nor euphoria; my job may be at risk, but the practicalities are not morbidly disastrous - house sale at the very worst, and back to living with the parents for a while.

In November 2006, I was several thousands of pounds in debt with no savings other than company shares and a pension. I had my lightbulb moment and, spurred on by other DFWs (and MFWs of course!), I worked overtime in my second job, lived below my means and in less than a year I paid off my overdraft, credit card and personal loan as well as beginning to make mortgage overpayments.

I opened a cash mini ISA (6.21% interest), and a S&S mini ISA (fund currently performing embarrassingly well even after fees, but again very risky and volatile). I have bought individual company shares (also risky, I know!) and also bought premium bonds because it's no crime to dream of a significant win, and I have overpaid my mortgage by around £2500 this year.

Never mind compound interest, here is the magic of internet forums! Had I not discovered this site, had the lightbulb moment, and actively taken control of my personal finances, I'd not be sitting here wondering how I would pay the mortgage, council tax and utility bills - I'd be wondering how I would be able to service all the additoinal debts and associated interest as well. All this without any savings to dip into to help along the way!

So thank you all for keeping the spirit of moneysaving alive on the internet forums, and for bringing practical realisation to financially naive me back in 2006, and to countless others on a daily basis!

If redundancy does occur, then I'll have to take a break from MFW overpaying for a while. I'll still be a MFW in spirit, lurking here and continually being amazed by people's fantastic progress, but may not be able to meet my own targets as aggressively as once planned. Along with my minimal savings (not even three months' salary but it will all help for now) and previous mortgage overpayments, the part-time evening/weekend job, if I can work a few extra hours, should *almost* cover my essential monthly direct debits until I am back in full-time work.

Money may not make you happy but even just those first few steps on the road to financial security goes a long way to helping :beer:
MFiT number 21
Current mortgage £87,914 (0.78%)

Replies

  • robprobp Forumite
    221 Posts
    First of all, congratulations on such an impressive paying off and saving spree! It does feel good to make such big changes......which is what redundancy is, a big change out of your comfort zone.

    I've been made redundant twice, the first time I had no choice while the second time I applied for voluntary redundancy.

    The first time was a shock, I was young and couldn't work out what I'd done to deserve this treatment. Soon after, I realized that companies work with wide brushes. They have to make sweeping changes and tend to work with the big picture.

    Since then, I have never felt part of a company or loyal to one. Maybe that's a shame, many people worked for one company their whole lives.

    Things have changed though. If they cannot make commitments or reward loyalty then neither will I. I now look after number one, and if I see a better job I apply. No worries about missing familiar work, environment or colleagues. That has given me the best 'MSE' progress that I would never have achieved otherwise.

    Why not be pro-active? Start looking for another job, go to interviews, widen your horizons! I promise, it can open some very interesting doors for you.

    Don't think it's personal.....they do choose people, although sometimes it's just whole departments that are closed.

    Take it out of their hands and make it your own decision to go. You may just walk out with that lump sum and into another role after all!

    Not sure what you do, but Jobserve and Monster websites can be your friends....

    Good luck!
  • jessicambjessicamb Forumite
    10.4K Posts
    Part of the Furniture Combo Breaker
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    Hope everything works out ok Sally

    Good luck x
    The early bird gets the worm but the second mouse gets the cheese :cool:
  • JonbvnJonbvn Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts
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    robp wrote: »
    I've been made redundant twice, the first time I had no choice while the second time I applied for voluntary redundancy.

    The first time was a shock, I was young and couldn't work out what I'd done to deserve this treatment. Soon after, I realized that companies work with wide brushes. They have to make sweeping changes and tend to work with the big picture.

    Since then, I have never felt part of a company or loyal to one. Maybe that's a shame, many people worked for one company their whole lives.

    Things have changed though. If they cannot make commitments or reward loyalty then neither will I. I now look after number one, and if I see a better job I apply. No worries about missing familiar work, environment or colleagues. That has given me the best 'MSE' progress that I would never have achieved otherwise.

    Why not be pro-active? Start looking for another job, go to interviews, widen your horizons! I promise, it can open some very interesting doors for you.

    Don't think it's personal.....they do choose people, although sometimes it's just whole departments that are closed.
    Good luck!

    Good post!

    I have worked on a contract basis since 1990. TBH it is the best financial move I ever made. I have no loyalty to any company and vice versa. I have worked at too many different companies to list, all over the world.

    When I have left some companies, the management were quite dissappointed and tried to imply that it was in some way wrong and I owed them something. However, I have seen the same managment firing people without any compunction. Sorry but loyalty doesn't pay the mortgage.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • Good luck Sally, I hope that it all works out well for you. Problems like these come along and give you a bit of a jolt but sometimes they can open up a whole new direction in life.

    Keep us all posted with your progress.
    Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
    [strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
    ● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
    ● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
    Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73
  • If you've no debt the worry of redundancy isn't as bad as it will be for others in the same position. You've done well and will cope because you've taken steps to clear your debts. You're an inspiraton to others.
  • PeelerfartPeelerfart Forumite
    2.2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    I can only agree with the above. Having been employed in one form or another ,by the steel industry,I know what job uncertainty is like. My employment has been insecure since 1980 but 27 years later I'm still working.
    It really did look like I was gone last October,but like Sally got Debt Free and it wasn't such a problem.Now the best guess is I will OK 'til 2010 so my wife and I are working on the Holy grail weare MFW's.

    The axe will fall - just be as prepared as you can be.
    Space available for rent
  • setmefree2setmefree2 Forumite
    9.1K Posts
    Mortgage-free Glee!
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    Good Luck Sally
  • groatie_queengroatie_queen Forumite
    909 Posts
    Mortgage-free Glee!
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    Well done Sally on making such good progress. I wish you every success with moving forward and with seeing this as a time of opportunity and positive change.

    best wishes

    GQ xxx
    If you have a talent, use it in every which way possible. Don't hoard it. Don't dole it out like a miser. Spend it lavishly like a millionaire intent on going broke.

    -- Brendan Francis

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