I’m over 50 years old. I’ve got a family to take care of and bills to pay. And I’ve been coldly kicked out of my job and put on administrative unpaid leave.
What am I going to do?
My first instinct is to panic, rush out there and start applying for positions everywhere; to get a job – any job – in order to keep the money coming in. However, that would not be a wise decision.
Panicking won’t solve anything and in fact it might make things worse. Instead, I’m choosing to take a deep breath and think things through.
What does being put on unpaid leave mean?
Immediately the loss of income comes to mind. Next, the fact that it means a substantial drop in my family’s standard of living. Then, the realization that this administrative unpaid leave might become an outright – permanent – dismissal.
Being forced on unpaid leave essentially means three things; loss of income, drop in standard of living, and the possibility of permanent dismissal. So, let’s look at each component more closely.
Loss of income
This is obviously the quickest, the most visible aspect of (in my case) the government forcing someone on unpaid leave. Going from, let’s say, $4000.00 (after taxes) per month to absolute zero. That part is easy to understand.
Still, let’s figure out where I actually stand financially… What bills does that income usually cover?
First things first, what are my regularly occurring monthly expenses? Expenses such as mortgage payments, car payments, electricity, natural gas, internet, insurance, Spotify, Netflix and so on is what I’m putting on the list.
I’m not including food, dentist bills or fuel for the car – those aren’t regular / “fixed” monthly expenses since they can go up or down depending on numerous factors or they aren’t monthly expenses.
Having a really good understanding of my regular monthly expenses is somewhat calming. Now I know how far my savings can carry me and I know what expenses can be cut if needed – which will automatically make my savings go farther.
As for food, gas for the car and things like the dentist – I believe – that’s where a family budget, discipline and being frugal comes in. A budget is often overlooked but it is a very good financial tool.
When my wife and I first started off together we lived on a strict budget. It always benefited us greatly.
Other sources of money
Next, is my income really zero? Well, no, I do have some other money coming in.
I mine crypto as a hobby and get paid in Bitcoin. I certainly can’t live off that but the income is regular and I typically get paid out 4 times per month.
The value of Bitcoin when measured in this country’s currency (Canadian) fluctuates a lot but it currently ranges from between $20 to $30 each payout or $80 to $120 per month.
Not much but better than nothing.
The Take Away
- I have savings
- I can easily cut some expenses – to make those savings go longer
- I have a small amount of regular income coming in
- I can make a budget and exercise discipline
It’s good to know that the situation is not immediately dire. I have a little room to breathe and figure things out
Drop in standard of living
With a loss of income it’s safe to assume an automatic drop in the standard of living follows. By “standard of living” I mean, no spontaneous spending, no eating out, no laser tag for the kids, no vacations, no dropping the house temperature to 20 Celsius in the summer or 25 in the winter. No splurging of any kind.
Don’t use credit
People can go on “normally” for quite a while by using their credit cards (CC) or lines of credit (LOC) but – in my opinion – this is foolish. At one point you need to pay that money back and when it’s time to pay you might still be without a decent income.
In my case, I prefer to keep the line of credit and credits card as a last resort or for an emergency.
Writing this, I realize that I will need to have a serious discussion with the kids and let them know what is going on. They’re both old enough to notice when things aren’t right and it’s pointless to hide it from them.
If your kids are very young you don’t need to tell them anything. Lucky you!
The Take Away
- I need to mentally prepare myself and the family that we’ll have to go without for a while
- I must resist the urge credit for frivolous purchases – keep the CC and LOC for emergencies
As a parent, I really hate putting the kids through this period but it is what it is and hopefully won’t last too long. In any case it’s definitely a learning experience for them (a refresher for me).
Possibility of permanent dismissal
Finally, since I found out that I was being forced on unpaid leave, I’ve been contemplating the fact that it might not end up being a – difficult but – temporary experience. The government might decide to double down on their discriminatory policies and I might be terminated.
Preparing for that very scenario is something I should focus on. This is why I’m happy to have savings on hand. I’m able to breathe and put some time into researching my options.
More questions come to mind
Should I put more effort in getting work through my Fiverr gigs?
Do I invest more into mining crypto?
Is trying to get a job that matches what I was doing in my cubicle the way to go?
Should I retire from my position, start collecting my tiny pension, and get any decent-paying job to make up the difference?
Do I even want to put myself back in such a dependent, powerless position again?
The Take Away
- I have to mentally prepare for the odds that the unpaid leave becomes a permanent dismissal
- I must figure out exactly what my best options are in terms of generating the income we need
- I have to take concrete steps to move forward successfully – not just daydream away the time my savings affords me
The truth is that I don’t know the answer to any of those questions (and all the other ones pouring in right now). Not yet. It’s something that I need to think about a lot and seriously.
Something that has to get done.
Conclusion
Being forced on administrative unpaid leave by my government is unsettling on many levels to say the least. You’re not laid-off, you’re not fired. You are in a kind of limbo…
And to make it worst, the government has made it a point to deny us the ability to take advantage of employment insurance. Something I’ve been paying into for 30 + years.
What does it mean to be forced on unpaid leave?
Being put on unpaid leave leads to:
- an immediate loss of (principal) income
- a significant drop in the standard of living
- the possibility of the unpaid leave becoming a permanent dismissal
In this situation, it’s important to not panic and act in a way you might regret. Take the time to think things through. Your position might not be as dire as you first imagine.
Figure out the following:
- regular monthly expenses
- expenses that can be cut
- how far savings will go
- other sources of income
- a family budget
- how to adapt to a lower standard of living
Once all of the above has been carefully considered, moving ahead with pre-emptive action is something I personally believe is the most prudent thing to do. That’s because I’m not sure at all that the government won’t simply hang us out to dry.
Unpaid leave might become getting fired
Start to prepare for permanent dismissal early by 1) identifying your best income generating options, and 2) by taking concrete steps forward. For example, fine tune your CV, research jobs and apply.
Or decide between putting together your own business vs working for someone else again. Stuff like that!
I tried to put some structure to this post, however, I see that it’s still pretty much my thoughts free flowing out of my brain. If you’ve stuck it out until the end… I thank you.
It’s all still fresh for me and I am very much trying to figure it all out but taking the time to think through and assess the unpaid leave situation I am currently forced to face – via this post – has been helpful.
I hope it’s been useful to at least one other person out there.