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1. 

   secretwealth
   

   Expert
   Joined: Jun '11
   Posts: 1,510

   My financial situation:
   Own apartment, $40k mortgage that will be paid off in the next 6-7 months.
   Salary: ~$95k/yr.
   Liabilities: Aforementioned mortgage, no other debt. My wife and I are currently living on around $1600/mo., excluding the mortgage.
   Assets: ~10k in a private pension fund, ~60k in equity, ~10k in various other investments/savings accounts

   Here's the rub: My job is a sort of experimental position and I have a contract until March 2013. It may be renewed, it may not. I'm very good at my job, but my employer is mercurial, and I simply cannot know if I'll get renewed or not.

   I'm not sure how to plan for this. If I lose my job, I can't expect to get a comparable job anytime soon or at all--and if I do, I won't be able to earn more than 40k. I have no problems with a huge paycut, although it will put off my retirement.

   I want to figure out what I can do now to prepare for this loss of income.

   Posted 1 year ago #
2. 

   frugalinCalifornia
   

   Apprentice
   Joined: Sep '11
   Posts: 37

   By keeping your expenses low it sounds like you are already prepared. In the meantime can you start a side business or go back to school part time to develop a more marketable skill set?

   Posted 1 year ago #
3. 

   rcamp
   

   Apprentice
   Joined: Aug '11
   Posts: 65

   If I may add you have 16 months to find another gig. Start looking now inside your field and comparable work. Part time gigs shouldn't be ignored.

   Given your mortgage can be paid off in 6-7 months, see if you and DW can find/cut the costs to pay it off in 4-6 ?

   Go after expenses, and clutter ( sell via ebay, yard sale etc ) ruthlessly.

   You have the foresight - leverage it. I did 8 months before my second big Layoff, and absolutely took advantage of it. You can too.

   At best, you have no debt , and no mortgage pretty quickly with a job. At worst, you have no mortgage, and no debt over a year out with two adults able to work to cover costs.

   Posted 1 year ago #
4. 

   LiquidSapphire
   

   Master
   Joined: Jul '11
   Posts: 434

   You are already doing part of it; saving a bunch of your salary. The other half is now trying to find an income replacement. Try to develop transferable skills as well as a network while you are there. Ideally you would be able to hop into a similar role once your contract expires.

   Posted 1 year ago #
5. 

   BeyondtheWrap
   

   Journeyman
   Joined: Jul '10
   Posts: 266

   Does your wife work?

   Posted 1 year ago #
6. 

   secretwealth
   

   Expert
   Joined: Jun '11
   Posts: 1,510

   Thanks everyone. Wife works, but is quitting her job this week to look for another one--I completely support her in this.

   I have already started working part-time to add some extra income, and I've thought about developing a new more marketable skillset, but I simply don't know what to go into. I thought about bookkeeping or maybe becoming a pharmaceutical tech, but in this uncertain economy it seems that every potential industry is suffering, and I don't want to waste time, money, and energy developing a new skillset that won't pay off.

   Posted 1 year ago #
7. 

   frugalinCalifornia
   

   Apprentice
   Joined: Sep '11
   Posts: 37

   Most jobs in healthcare have a growing demand. You can check here: http://www.bls.gov/oco/

   Posted 1 year ago #
8. 

   DutchGirl
   

   Master
   Joined: Sep '11
   Posts: 480

   I also think that healthcare will be a growing demand. Lots of people will get old and will need help in the coming few decades. And they may be able to pay for it, too.

   I also think that there will always be bookkeepers. They are an essential part of any company that makes more than 5000 dollars a year, I'd say. Learning about finances will also help you in your private life, not only in your work life.

   Posted 1 year ago #
9. 

   Chad
   

   Expert
   Joined: Jul '10
   Posts: 1,002

   You have to start looking for another job now. If you find one and don't want to leave you can use it as leverage to get your contract extended.

   Healthcare is definitely in demand. My mother is a CFO of a rural hospital in Pennsylvania. About 5 years ago a hospital from Philadelphia (about a 5 hour drive) called every single surgical nurse they had in the heart unit and offered them all 30% more on the spot without interviewing any of them. My mother's hospital had to almost match it to keep them. They still struggle constantly to keep the surgical/specialized nurses. Doctors too, but that's a ton of schooling and a different animal entirely.

   If you are going to do bookkeeping just get an accounting degree. A 2 year bookkeeping/accounting degree would put you at the very very bottom with little chance to increase your salary. Also, a good way to judge the quality of accounting programs is how many of the Big 4 (PWC, Deloitte, Ernst & Young, KPMG) recruit at the school and how many people they actually hire. There is usually a cheap state school in the area they recruit from. I'm not saying you should work for them, just that they can indicate the quality of the program. By the way, I'm a recovered accountant and by no means like the profession. I think there is a whole accounting thread around here somewhere.

   Posted 1 year ago #
10. 

    Dragline
    

    Master
    Joined: Aug '11
    Posts: 963

    I would start looking for new jobs now in your present field. Even if they are lower paying, it will give you options and perhaps some leverage with your current employer as 2013 draws closer.

    Also, if you can get involved in a project with the current employer that only you can really do, they will not be able to let you go. I've had several friends who were let go and had to be hired back as consultants (at higher pay) when a critical project could not be completed without them.

    Posted 1 year ago #
11. 

    Chris
    

    Journeyman
    Joined: Jul '10
    Posts: 195

    I'll second Dragline's suggestion. You claim that you're very good at your current high-paying job. Assuming you like what you're doing, you'll have better return on your time invested if you can increase your chances of keeping your current position. Besides your contract having an expiration date, is there writing on the wall that you're position isn't valuable to your employer? Are you revered enough that you may be offered a lower paying (perhaps a mere $75k) contract after your current one expires?

    Posted 1 year ago #
12. 

    web_diva
    

    Novice
    Joined: Dec '11
    Posts: 28

    Work to make yourself the "expert" in whatever it is you do. Very difficult for them to do without.

    Might be a good idea to start conversations with current employer about a possible contract renewal. If the work is there and they like you, my experience is they may try to persuade you to go "direct".

    Posted 1 year ago #

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