The following is a guest post. Enjoy!
Lost Your Job? Now What?
Losing your job, whether because it’s being made redundant or through sickness, will undoubtedly impact your financial situation. Even if you’ve managed to put some cash aside for a rainy day, increases in gas, electricity, and overall home expenditures will eventually start eating into your budget.
Before the panic sets in however, here are a few ways to get back on the money train and plan your way back into employment.
Getting the most out of your money
Planning your budget is an essential part of managing your money. Your money will become stretched throughout various points in your unemployment, and you will have to make sacrifices in order to keep the securities of having a home. Budgeting allows you to see what you have coming in and what needs to go out. Bills are a priority, and home comforts will need to take a back seat for a while until you get back on your financial feet.
Making the most of that rainy day
If you come to a point where you’ll have to dip into your savings, check with your bank to see if there are any fees for withdrawing at short notice. Surf the available interest rates and then compare them with your account – you might be able to squeeze a few extra pounds/Dollars out each month.
Making the most of your redundancy package
Whether you’re an employment solicitor in Nantwich or a computer technician in London, you will receive a financial package if you’re made redundant. It can be very hard, especially with lump sums, not to blow it all at once.
You will first have to determine how long you might be out of work, or how long you can go without working before your savings run out. Your redundancy package might not even be that much, so sorting out essential financial factors must always come first. Investing your money is also an option; however it’s unlikely you’ll see a return in your investment in time to meet all your bills.
Previous Loans
If you have a mortgage or other loans you’ve taken out, your first point of call is to talk to the people you borrowed off and aim to pay them back as soon as possible. Identify how much interest you are paying, and enquire to any payment plans to avoid more serious debt.
Insurance – Check you’re covered
Bills won’t just go away, and keeping up with your payments is important. Check if you have insurance (PPI or credit insurance) that covers the cost of your rent and other bills – it will help cut down your repayments.
Tax
You might have paid too much tax while you were in employment, so get hold of the HMRC/IRS and let them determine if you’re entitled to a refund.
Pensions
If you have a pension but are unable to access it due to your unemployment, Payment Protection Fund policies from the government may provide you with some compensation – it’s worth a look.
Getting back into work
There are numerous employment websites that will help with your search of a job. Start off with Jobcentre Plus or Monster as they offer training courses and other schemes to get you earning again.
How about you all? What are the first steps you took if you suddenly lost your job in the past?
Share your experiences by commenting below!
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