[Originally posted on Reddit to ask for help…]
I was laid off in the middle of July as part of the tech layoffs. I am the only person able to and do many household chores while my spouse is between major eye surgeries. My family of four was struggling paycheck-to-paycheck when I was making $20/hr in the US Midwest. I’ve had some success getting interviews, but with my generalized IT helpdesk skillset, no one seems to be offering close to what I was making before. Best offer so far was a temp job making $16/hr but I declined this because the time cost would have prevented me from looking into more profitable work and would keep me from driving my wife and kids to doctors and schools (we considered Ubers, but then there’s a significant financial cost). I am currently making $360/week on unemployment.
The lowest I can get my expenses is $2,923.84 (which anticipates the beginning of a mild winter) (this is about a $150/month shortfall at $16/hr).
- Auto Loan 194.00
- Credit Cards 305.00
- Cell Phones 65.00
- Gas for Commute 45.03
- Electric 150.00
- Internet 45.00
- Heat 50.00
- Sewer
32.00(not being paid; converts to a lien on the house after 2 years) - Garbage 16.20
- groceries 640.00
- Netflix 6.50
- Kids Aftercare 866.67
- Mortgage 508.45
We have two cars: a 2013 Ford Fusion SE and a 2013 Fusion Hybrid. We thought about selling one car to eliminate a payment, but we’ll need a second car in November or December when my wife is (hopefully) recovered and able to work again. It would be shitty to sell the car, have almost nothing to show for it, then have to buy into the market again with no money for a down payment AND a higher interest rate.
Given all the indefinite variables, I’m totally unable to prioritize my time, money, and assets in this situation. I’m sitting on:
- Rollover IRA worth $70,000
- 401k worth $26,000
- (These account for ALL of our retirement savings in our mid-late-30s when we each should have triple-digit retirement accounts)
- 100 year old, 1000 sqft home with a Zillow Zestimate of $135,000; has a 30+ year old well, roof, and siding; shitty electrical; mortgage is down to $40,578
- My year-to-date earnings at the time of termination were $25,672.
- $16,000 in Credit Card Debt (most at 9%, $3k at 0% interest until next year)
…and these are the unknowns:
- I don’t know how much longer I’ll be unemployed;
- I don’t know what my income potential really is since I haven’t looked for work in 10 years; it’s possible my market wage is $16/hr; wife will make between $17 and $20/hr as a dental receptionist if/when she can work again;
- My wife MIGHT be able to work in November, but it’s also possible her health will deteriorate;
- I don’t know if we can get by with a single car if/when she gets back to work;
- I don’t fully understand the tax penalties of early withdrawals nor the repercussions of shorting my 65 year-old self
From what I can see, these are my options:
- Cash out the smaller 401k; this bumps my family’s year-end income over $40,000 and I would likely owe an additional $3200 in taxes over whatever penalties they also charge, but I might end up with $20,000 in the bank which would give me time to increase my skillset and wait out my wife’s surgery.
- Sell one of the cars and hope it goes fast enough to eliminate the loan payment; then eat the time cost of a $16/hr job.
- I’m waiting to hear back from some recent interviews; I could start defaulting on things hoping that I get a decent job offer within the next month; then work on getting current once I’m employed.
- Sell my house quickly for whatever we can and move into a trailer or apartment temporarily; hopefully netting $60,000 in the process. 2-bed 2-bath townhouse rental in my area is about $1600/month.
- Ask (beg) our church, family, or government for assistance.
I feel like I am too close to this situation to see it clearly. Am I missing something obvious? If we do nothing and I don’t get a job this month, I know we’ll be in an even worse place, but I don’t want to possibly traumatize my children (6 and 9) by shattering their stability unless it’s absolutely essential to do so.
Update: I accepted a job offer on Sept 8th and they actually suggested I start Oct 2nd so it wouldn’t conflict with wife’s surgery.