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The job was not to my normal caliber paying
40% less than I usually make. I have a one-bedroom
apartment in Southern California that is $1,500 per month.
My unemployment compensation is just $1320 per month. My
monthly nut (including food) is $3,120, and that’s already
minimized.
Friends, my
boyfriend and family are in similar financial
straights right now. I lost all of my savings in the
stock market last year and I've already cashed out my
401K. Even if I sold everything, I
wouldn’t receive enough to cover the rent and it would
take me 10 years to replace it all again. I’m
trapped. Financially, is there anything I can do?
Please Advise,
Terrified in California,
Female (36), Irvine
Dear Terrified in
California-
Sure wish I had a
magic wand! We’d all live in the magic castle at Disneyland
and agree on everything.
In the real world,
things aren’t so easy. Unfortunately, we often have to deal
with unexpected job lay-offs, grumpy landlords, relentless
creditors, and fickle partners. In your case, the landlord
seems to have center stage for the moment.
Have you talked
with him? That’s where I’d start – right after I located my
lease agreement and read it from beginning to end. You might
find out that you have a month-to-month lease, and all you
need do is give 30 days notice! In any case, find out exactly
when your lease is up.
TOP
The Los Angeles
market is good now, and your landlord may jump at the chance
to get you out and up the rent for someone new! If you’re
willing to cooperate with him and let him show your unit to
prospective renters, he could be open to cutting you a deal.
TOP
If you can’t get
anywhere with your landlord, consider taking in a roommate or
subletting to someone else. Put ads up on the bulletin boards
of nearby colleges or in the local Pennysaver. If you go this
route, be sure to screen potential responses. You sure don’t
want to compound your problems by getting stuck with someone
you can’t live with!
TOP
In the meantime,
you need to do some serious financial soul-searching. At 36,
you’re young enough to have much of this stuff just bounce off
you! But pause for a moment and take a look at your potential
future. You sure don’t want to “sell everything”. The
objective here is to simply live within your means. Spend a
little time working on a budget. What can you realistically
afford to pay for rent? Could be you’ll have to consider
sharing space with someone else, or relocating to a less
expensive area.
TOP
Block out some time
for yourself to consider where you are now, and what dreams
you hold for your future. Project some goals for yourself.
Where do you hope to be a year from now…five years from now?
Then do what you have to do to get the ball rolling!
TOP
Your action plan:
1. Read and
understand your lease!
2. Talk with your
landlord.
3. Consider a
roommate or subletting
4. Develop a plan
for yourself so you don’t get stuck in this situation again!
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