So I gave you pretty much my entire backstory in my initial posting in this series. But there is another wrinkle in this tale worth mentioning. As you know if you read this blog, my grandmother passed away in October. That left me without any surving parents or grandparents, and aside from a cousin that's pretty much like an aunt, on my own. This is really the first time I've been financially on my own, as in no safety net. I got a full scholarship to college that covered the full cost of attendance so my parents did not have, or need, to support me there but my dad would give me money from time to time until he was laid off. I also got a full tuition scholarship to law school, so I only needed loans for expenses. I wasn't so lucky with my MPH and had to take out a lot of loans. I struggled a little at the tail end of some semesters, my grandmother helped where she could on her fixed income, but it was mostly smooth sailing until my dad passed away with no warning and no insurance my last year of law school. I spent my loan money to bury him properly and ended up putting myself in a financial bind for the rest of that semester until I was awarded my dad's funds through probate court. I used them to right my financial situation, cover my bar expenses along with my bar loan, and to move back to Atlanta for my grandmother.
After my grandmother passed, I made some necessary additions to the house. A washer/dryer because we had never had a dryer and the old washer had no spin or rinse cycles and was in effect useless. And a new stove because the old one was older than me and took an hour to preheat. And I painted and did the floors of the kitchen and my grandmother's old bedroom because as far as I can remember I don't think that's been done since I've been alive. I also rented a huge dumpster and filled it with stuff my grandmother had been hoarding since she'd bought the house in the 60s. I was very careful to buy durable, nice things but nothing too nice that would break the bank. Still, after two and a half months of unemployment, I am in effect tapped out. But this post isn't really about me. We are still deep in the throes of a recession. And I want all of you out there, especially the new grads, to learn how to approach unemployment and learn from my mistakes. I am definitely a walking, talking cautionary tale.
So since sharing is caring, I decided I'd share some things I've learned since March 31, 2011. I did some stuff right but a lot of stuff wrong, I'm putting all of it into this list. Enjoy.
1. Don't be overly optimistic. When I stopped working, I was sure that I'd have a job to go to by May 1 and definitely no later than Memorial Day. Today is June 16th. looks for job under a nearby rock. Yeah, it's not there. You need to cut spending as soon as you learn you will be unemployed and definitely no later than the last day of your job. I was pretty good about cutting out shopping and needless excursions even in the months leading up to my last day but what I neglected to do was think about how I could decrease the regular bills I had. We'll get to that in a minute.
2. Don't ignore the "little" expenses. Yeah, I know that Starbucks coffee you have every day at work only cost you $5. You go to work everyday, don't you deserve even that small luxury. Yes, yes you do. But think about this, in a months time if you are still unemployed and you have to pass on an outing to the movies with your friends because your tank is on E and you don't have the $10, won't you wish that you had been a little wiser about those little luxuries. I hate coffee, but every day I worked I would buy a lunch. It was never over $10 and my rationale was that I deserved it since I worked all day plus I was too lazy to actually get up early and make a lunch. But now, I wish I had cut that corner. Along the same lines, GAS IS TOO DAMN HIGH, if you work walking distance from a train line, take it in to work. I did this from September until late October or early November when it started getting real cold and then again in March once it warmed up. I suggest you set a benchmark temperature, mine is 50 degrees because I hate the cold. If you live in Atlanta, this rule only applies if it's on the train line. MARTA buses are way too erratic to mess with.
3. Don't forget your student loans. If you are unemployed or underemployed, consider consolidating your federal loans and entering Income-Based Repayment (IBR). Also, don't ignore your loan payments. Call and ask for a forbearance/deferral based on your current circumstances. Defaulting on your federal loans can have dire consequences for your credit score as well as your employability. I heeded this suggestion, as soon as I saw that $1000 loan payment that would be more than my monthly take home pay coming down the pipeline, I hit Direct Loans right on up. No sir, uhuh, I don't play that.
4. Don't forget that monthly bills can be streamlined. Today, I went to send a text and I couldn't. You wanna know why? Because Verizon cut my ability to make outgoing calls and send texts. For now, I can still receive my calls and access my voicemail. A month after I lost my job, when I came to my senses about the situation, I cut my Comcast Xfinity cable and internet services, cut the features on my home phone (including the long distance), and downgraded to a basic DSL internet connection through AT&T, my home phone provider. I even haggled the guy on the phone for a lower rate which is antithetical to my entire personality. But in the words of Judge Mathis, "Times [are] hard, [I] had to make due." What I forgot to do was think about how I could cut one of my biggest bills, my cell phone. I was still walking around with a $140 plan that includes a data package, unlimited talk and text and insurance. As a result my bill is now two months past due. With Verizon, I have to keep the data package for my smartphone and with me being me the insurance is a wise wise choice because I'm very clumsy. But as soon as I pay this past due amount, I will be downgrading to that 450 minute plan with 500 texts. It's real in the field ya'll.
