Cutting Expenses

Obviously, this is a touchy subject, one that is of critical interest to many but only of passing interest to a fortunate few. We are going to address the former in the hope of providing some meaningful assistance to the more financially-challenged job seeker planning how to weather what may be a rather intense storm.

We don’t pretend to know how to advise you on exactly where cutting expenses makes sense. Rather, our focus is where you really cannot cut if you plan to actively search for a management position.

We are not financial counselors and we make our recommendations strictly from the layman’s perspective and from the job search point of view.

Don’t Shoot Yourself in the Foot!

The nature of today's hiring process and the fact that most of the better opportunities are to be found in the Hidden Job Market force you into an active mode that will incur expenses and take time.

There was a time that large credit lines or ever-expanding home equity provided a cushion to “finance” the job search and even some of the living expenses in the interim.

The global financial crisis has removed this option for most people today. Assuming you have only limited savings, a significantly reduced income (or none at all) and a fixed overhead (mortgage or rent, utilities, etc.), it is up to you to look at the options for cutting expenses associated with daily living. These may include entertainment (including cable TV), food, hobbies, clothing, etc. In theory you are capable of assessing your own household maintenance needs and adjusting accordingly. In case you don’t know it yet, unemployment income alone is not likely to be able to support a household even at the basic level.

After a close examination of your budget and assets, and carefully assessing how cutting expenses will extend your resources, your next step is to examine the expenses you cannot cut.

Here’s Where You Cannot Cut.

Telephone – You will need a dedicated phone line. Your cell phone with voice mail should be answered only by you or someone trained to take messages in a professional manner. You might want to have a service plan with unlimited minutes.
• Computer Access – Writing letters, building your Accomplishments Library, producing resumes, sending email, etc. all require active, daily use of a computer with high-speed access. You’ll need a printer; the ability to produce (and reproduce) documents is not a luxury. (It’s cheaper and more efficient to invest in your own printer than to run to the local copy shop every time you need a document.)
• Transportation – Getting to and from meetings, interviews and related events is problematic if you don’t have an automobile or access to adequate public transportation. Either way, you need a budget to cover transportation expenses. Conducting an active job search typically involves much greater travel time and expense than when you are working. It’s not uncommon to incur three to four times the expense you normally would expect.
• “Meals & Entertainment” – Lavish lunches are not appropriate under any conditions . . . unless you are networking on the country club circuit (in which case you probably aren’t reading this with any great enthusiasm). But, you can expect to meet people at coffee shops, popular sandwich bars or even at the lounge in the local bookstore. It still costs money, but this is not the place where you need to flash your gold-plated Amex card! Cash will do and is appropriate.
• General Marketing Expenses – Business meetings, seminars, and wardrobe maintenance all have a dollar value. Appropriate dress may require some upgrade, but cleaning & pressing costs can be mitigated, shoe repairs can breathe new life into stylish (but comfortable) shoes, etc. As for research expenses, most of it can be done on line or in the library for free. You can even “browse” current titles at Barnes & Noble or Amazon.com without having to make outlandish or speculative purchases. (More on this elsewhere.)

Be Prepared To Do What You Have To Do To Survive!

Hope and wishful thinking are not viable strategies. Bankruptcy is one thing (and not as bad as many people believe), but a list of delinquencies and slow pay on your credit record are quite another.

Get The Help You Need While You Still Have Choices.

Cutting Expenses and Managing Your Budget Give You A Valuable Sense of Control.

Return from Cutting Expenses to Interim Income.

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