Have you been Credit Crunched ?

Are you worried you might be Credit Crunched ?

Careful planning in the event of redundancy is essential.

There are a lot of decisions you will need to make:

• Should you cut out discretionary expenditure (holidays, restaurants, new clothes, luxury brands)?
• How much cushion does it give you to cut out discretionary expenditure ?
• When will your cash run out ?
• Do you need to move to a cheaper house ?
• Can you get a loan to see you through ?
• At what point are you in serious trouble ?
• When do you need to plan to sell illiquid assets ?
• How long have you got before you absolutely HAVE to find work ?

My Redundancy Planning Calculator is aimed at helping you to make those decisions. Here are a list of inputs:

• Liquid Assets
  • These are assets that you own that are as good as cash. You can get near immediate access to your money. Shares and bank deposits are a good example
• Liquid Assets Annual Return After Tax
  • This is the return you expect to get on your liquid assets
• Liquid Assets Monthly Return After Tax
  • Calculated... you don’t have to enter this
• Illiquid Assets
  • Assets that take time to access their worth. The equity (value – mortgage) you have in your house for example... or term deposits
• Illiquid Assets Annual Return After Tax
  • Return you would expect on your illiquid assets
• Illiquid Assets Monthly Return After Tax
  • Calculated... you don’t have to enter this
• Months taken to sell illiquid assets
  • Illiquid assets take time to access the worth... how long ?
• I can get a loan up to
  • Do you have access to a loan ?... If so, how much can you borrow ?
• Loan Annual Interest Rate
  • Loan annual interest rate Loan
• Monthly Interest Rate
  • Calculated
• Today
  • Today’s date – Calculated
• Monthly Rent
  • How much you pay per calendar month in rent
• Annual Rent Change
  • How you expect your annual rent to change over time
• Monthly Rent Change
  • Calculated Monthly Mortgage payments - If you have a mortgage, how much is it costing u ?
• Monthly Essential Expenditure
  • This is the expenditure that you cannot do without... Things like food, electricity, water, council tax
• Monthly Discretionary Expenditure
  • Things that you could cut out if you had to
• I am going to cut out Discretionary Expenditure
  • This allows you to see how much longer you have to find a job if u tighten your belt. Use this to bargain with your wife when she goes to buy new shoes... Be prepared to give up that gym membership though... ; - >

Don't know how much of your spending is discretionary ?.. Get started on my expense tracker

Enter your own values, and the calculator will provide the following information:

• It tells you when it thinks you’re in big trouble
• Advises when to think about selling illiquid assets
• Allows you to enter large inflows or outflows of cash
• Tells you when you need a loan

Welcome feedback !

Good luck

Nick

Training Video on Redundancy planning: