When you lose your job, there are a million different things running through your head. It is an incredibly difficult emotional time that can leave you reeling. But the fact is that, as huge and cataclysmic as it may feel, this is something that will happen to almost all of us at some point in our careers. And given the state of the world and how things have been for businesses over the past year or so of the pandemic, it has happened to a lot of us already very recently.
We are not saying this to diminish the seriousness of your personal experience. We are saying this because it is important to remember that things will get better, your situation will improve, and there are so many tricks, tools and support systems out there that will help you through this tough time.
One of the biggest concerns when you are made redundant is what you are going to do about money. Many of us have a little rainy-day fund but how long can you make that stretch for? What’s more, most of us have already been pushed to breaking point, financially speaking, over the course of the pandemic and that cushion that we had been working on is probably looking significantly less comfortable than it did a year ago.
So, with that in mind, you need to start getting proactive and organized about making your budget stretch further. Here are a few tips to help you get a handle on the situation and plan ahead.
Find Out What Your You Are Owed
Depending on the terms of your employment’s termination, you should be owed a certain amount of pay. Go over the details of your severance package with your employer and make sure that everything has been accounted for. For example, have you been compensated for any vacation time that you didn’t take? If you are at all unsure about what you are owed, talk to your human resources manager.
Don’t Hide The Situation
One of the main reasons why a lot of people feel a deep sense of panic when they lose their job is because there is a lot of stigma attached to it. Because of this, some people will allow their worry to overwhelm them to the point where they will not be entirely upfront with their partner. If you want to get a handle on your finances, then it is vitally important that you tell your partner what has happened immediately so that they can work with you, instead of carrying on as if nothing has changed because they don’t actually know.
Find Out Exactly Where Your Money Is Going Right Now
Here’s one of the reasons why total transparency with everyone in your household is so important when you find yourself out of work. If you want to get to grips with your finances, then you need to have a perfectly clear idea of exactly where your money is going every month.
There are many different ways that you could approach this, but one of the easiest might be starting with the biggest expenses and working your way down. So, start with how much you’re paying in rent or mortgage payments. Do you have tuition fees that you need to account for? Car payments? Go through everything, all the way through energy bills and the weekly grocery shop, all the way through to iced lattes and movie tickets. Once you have that comprehensive list in place, you can think about where you can start to make some changes.
Notify Your Insurance Policy Holders
The pandemic was an excellent prompt for many of us to take out unemployment insurance. A good policy can pay out up to 70% of your gross annual earnings, so if you have a policy then it is time to let them know the situation. Remember that some providers may pay out more quickly than others, so it does pay to alert them as soon as possible to avoid any potentially difficult delays.
Think About Telling Your Mortgage Provider Or Landlord
One of the biggest expenses that any of us has is our rent or mortgage. While we can’t expect these payments to stop, we may be able to negotiate a temporary change in interest rate or a delayed rent payment if we have a good credit history and have been on time with our payments in the past. This is by no means guaranteed, but it is worth considering.
Think About Where You Can Start Saving
This is one of the most important steps, but you should keep in mind that this is going to be an ongoing process. When you look at your monthly budget, there will be some expenses that will be clearly marked as easy to cut. When was the last time you had enough free time to use that gaming subscription service, for example? Other costs will need a little more discussion before you trim them. Giving up a car can sometimes be simple, especially if your family has two, but there will be times when it simply is not going to be a workable solution. Maybe you could look at selling your property and moving to a smaller home, or perhaps renting makes more sense right now.
Other savings will have a smaller immediate impact but will all add up. For example, try using the local library instead of buying new books. Think about looking at different brands for everything from clothing to household cleaning supplies. Take public transport or walk when you can to save on gas money.
The weekly grocery shop is also something that you should take a close look at. Plan your meals ahead of time to make sure that you are only buying what you need. Buy in bulk to save money and look for coupons and apps which offer discounts. If you want to learn more about eating on a budget, Tally has put together a helpful list of ways that you can avoid overspending at the grocery store. What’s more, if you are looking for ways to pay off credit card debt more quickly, Tally can help you to pay off high interest debts more quickly.
Think About What’s Next
It’s all very well and good to think about how you can start saving money, but the most important next step on this journey is going to be finding a new source of income as soon as possible. It is no secret that the job market has been brutal during the pandemic, but new opportunities are coming back now that the world is getting back to normal, and businesses are opening up again, things are starting to look a little brighter.
If you want to make sure that you stand out from the competition, ask yourself whether spending money on a training course is something that you could afford. More and more businesses are placing more importance on their digital elements, such as online marketing, social media and SEO-driven content. Adding extra digital skills to your CV will make you a more enticing prospect to employers. Finally, remember to stay positive. This is just a temporary situation, and you will bounce back.
