There is no way of painting this any different to the real picture. We’ve had one of those sudden life changes: Mr Minted has been made redundant.
While it was not wholly unexpected, it’s still a bit of a shock. Redundancy really does have such a huge impact on your confidence levels and, of course, your financial circumstances. Fortunately he got a relatively generous settlement which has softened the blow. We’re lucky that we don’t have any huge debts and there is a cash cushion in the bank. Nevertheless, the Minted family finances have screeched to a halt.
Obviously the household budget is now under intense scrutiny. The regime I followed to pay back Christmas has been extended into the foreseeable future and I am ferociously trimming any expenditure on the domestic front. Every single money-saving strategy in the Skinted Minted arsenal is being deployed, even if it means hardship for some. The Mintees are discovering that Morrisons Mighty Malties are actually just as tasty as Shreddies, for example. We are now Café Pod rather than Nespresso for coffee capsules and so on.
Money saving going forward is one thing, having a safety net to fall back on is quite another. In financial planning, the advice from the professionals is always to have at least three months’ worth, preferably six, of salary (or living costs) tucked away in an emergency cash fund before you even think about investing or saving anywhere else. Now I see how crucial that tip really is – and how glad am I that I followed it.
You can add in all sorts of insurance for rainy date events. Policies such as critical illness or the much-maligned payment protection insurance (PPI) have not always been a good deal for consumers and still need careful research. If they do kick in when your chips are down though, they’re invaluable, especially in terms of mortgages. It really is worth considering something of this nature to keep a roof over your family head when disaster strikes.
Fingers crossed, Mr Minted can find gainful employment soon (offers via the comments box at the end of this blog welcome!). I can certainly think of a few jobs which need doing around the house and garden, as well as all the school runs and other child taxi services. There are plans for a couple of Mr (somewhat less) Minted blogs, so watch this space while I sharpen my blue pencil. In the meantime, I’ve written a short ten-point guide for anyone else in a similar predicament: please check it out here.