Financial Meltdown

My life has been turned upside down.

My major client has decided that they need to cut costs and want to cut my fee by two thirds.

I am in turmoil

Our very survival is on the line

That it has been badly handled has added to the stress

I sat up most of last night trying to find a way out of this imminent financial disaster

I now have to justify what I do for them and what my expenses are

I have worked with this client and more or less the same group of people for 15 years

If they don’t know my worth by now I doubt I will be able to convince them of it

The pressure is coming from the headoffice and the puppets here are just rolling over and expecting me to do the same.

What they are suggesting is not sustainable financially

They had this year’s budget before the end of September last year. Now it is being questioned.

OH retired in November last year

His annuity draw down for this year was based on my expected earnings

Now this …

With apologies to Granny for the one-liners. I am not capable of full sentences right now.

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20 thoughts on “Financial Meltdown

  1. I read you last post about stress first. Now I understand why. Oh my Optie I can so relate to what you are feeling right now. I ditched all my small clients when I was working and took on one large one. Guess what 2years later he said they had to cut costs and I was given the elbow. I’m also at an age where I can’t just go back into the job market and with everyone cutting costs there was no possibility of consultancy work. Hope you guys pull through.
    Thinking of you

  2. It is horrible, i have been through similar a few times and know how te shock immobilises one for a time.

    Take a few days to recoup your spirits, the next opportunity will come when you put yourself out there.

  3. Is there any way you can increase your client base? I lost a massive contract two years ago with a devastating effect on our lives. I was however able to spend the last 6 months of my Dad’s life working from home and then Vic came home. Somehow we managed and survived not only our normal overheads but HUGE and debilitating medical bills. Everything has a way of working out. Good luck and thank you for your support and cyber friendship!

    • Tersia I know that in the bigger scheme of things crises like mine mostly work themselves out in time. However I am still at the stage of absorbing and processing the shock, and dealing with the fact that I was deliberately misled. I will be actively looking for new clients, and also considering more drastic options if I am unable to renegotiate my arrangement with this client. But right now I am feeling insecure and demoralised. Thanks for taking the time out to visit my blog and comment.

  4. Sorry to hear of your plight, we have been retired for 10 years and the income on our savings has never matched our outgoings. We had to sell our house in order to live. With all the terrible increases in the cost of food I think everyone is suffering. Someone a long time ago once said that we only cause things to happen in our lives that we know we can handle. I just hope this is true. 🙂

    • We will have to sell up as well Leo, we had planned to do so in 5 years time but this might bring that event a lot closer. I’m not sure about causing this to happen, this was completely out of my control and was driven by the need to create an empire in Gauteng at the expense of other centres.

      I just popped in to Fruit & Veg and found the prices hugely better than Pick n Pay and Woolies and the quality pretty good too. It is out of my way but if we are to eat healthily we will have to make the effort.

      We will survive this but our quality of life will be seriously compromised. The saddest thing for me is that the little bit that we have been able to save each month up till now will fall away and with it the possibility of ever going to visit my daughter and granddaughter in the UK. That hurts more than losing our house, or cars or any other material posssessions.

    • Read between the lines Ruth, I am so pissed off and demoralised but have to keep the anger under control if I am going to salvage anything from this disaster.

  5. Oh no! This is devastating news for you and hubby. Two thirds is really a drastic reduction in income. I hope you can find a way around this, optie. I can just imagine how worried you must be feeling. Hugs to you,

  6. So sorry that this blow has come. A two-third cut is simply ridiculous. Hopefully, the only way to convince them will be to illustrate that the job cannot be done by you for what they have in mind, and that should they now try and get it done by someone else it is going to cost them far more in the long run. This makes sense, because you have the full knowledge of their operation which others would have to pick up before starting.

    • Thanks Col, in the long term they might well realise their mistake but in the short term I am going to have to eat humble pie until I can find some other way of generating a livable income.

  7. This is awful. I cannot tell you how sorry I am to hear this. I knew you were already going to be on a very tight budget do to OH retiring. Such a scary time but try to keep your mind open and others doors do have a way of opening if you are ready to receive them. I will be thinking of you and sending every positive thought I can muster your way.

    • Thanks Long Life, definitely will be investigating any opportunities that come my way. Might only know the degree to which I am to be impoverished by the end of next week so feeling incredibly insecure right now.

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