The economy is so fragile. Chrysler just announced going bankruptcy. The unemployment rate keep creeping up last month. Sun Micro the Doc-Com King 10 years ago, now had to be bought to be diluted. The job market does not look good for Class 2009 and those freshly out of colleges less than 2 years.
So What would you do, if you know your company is not doing well and the pink slip is a timing bomb shell?
Here are some tasks you can think of to PREVENT your money trouble in the six months to come:
1. Re-finance If you own a house and the mortgage payment is taking the regular one-third of your salary. Act now, do a refinance. Interest rate is still at the record low: 4.5%-5% these day, and will probably be like this for this quarter. Take the advantage to get a lower rate and reduce your monthly payment, so you will have less chance being default your house.
The other timing factor here is you will be eligible to do refinance while you are ON the job. If you get laid off, it will be very hard to find a lender to finance you.
2. Pay down your mortgage if you can – If you have some cash in the bank, consider pay down your mortgage so your monthly payment will be reduced also. For most people, mortgage is the largest expense in the household, if the monthly payment can be reduced or refinance to a different term, 30 yrs to 15 yrs e.g.) Do it, to save you lots of worrying nights.
3. Re-examine your financial siuation. Sit down and do the numbers, balance your bank accounts. Consult your CPA or financial experts. Do I have enough money to survive 6-8 monthly with a cut back? Do I have to rent my place to break even? Or is this the good time to sell?
These are all SERIOUS big questions. Because it not only affect your life for the next 6 months to 2 years until you find a comfortable job and solutions, but also moving and changing environment are big life changes, they affect our lives, your friends and families.
What you want to do? what’s the best thing for you to do?
A smart and responsible person will think all these questions through before they will let things happen. They probably will not let the pink slip come to them.
Wishing all of you out there stay put and have a calm ride in this difficult time.
1601 S De Anza Blvd., Ste 150
Cupertino, CA 94158