My husband brought to my attention that the municipality for which he works may be doing some serious layoffs in 2 years. He and one other guy have the most seniority in his department (so he’d be one of the last to be let go), but there are a few other guys in neighboring departments who have a bit more seniority than he does. So, if my husband’s department is cut, and the neighboring departments experience cuts, the folks with more seniority in those other departments can bump my husband out of his position. He may or may not be able to bump someone else in yet another department, but I’m not sure if we would pursue that route.
None of this is likely to happen until fiscal year 2011/2012.
Knowing this is a possibility, what would you do? Save up like crazy (we are able to), in preparation for the possible future layoff, or save a bit extra every month on top of our regular savings (not necessarily everything), or live in the here-and-now (and just go along saving as much as we are now, and spending just as much as we currently do)?
He just brought the situation to my attention last night, and I’m trying to think through everything. Wisdom is appreciated.