How to Manage Your Finances After a Job Loss: A Guide
Losing your job can be a major knock to your life. After all, a job loss won’t just affect your career, it will also affect other aspects of your life such as your personal life and your finances.
People who lose their jobs often worry about their finances. This is understandable – after all, your financial situation is bound to change if you lose your income. While each person and their situation is different, there are a few things you can do to manage your finances during this tough time, and we’re here to share them.
Find out if you can get compensation
While this is not always the case, there are a few instances where the company may need to give you some form of compensation if you’ve lost your job.
For example, if you were retrenched but not fired, you may be able to get a severance package. And if you were let go due to an injury, sickness, or disability, you may also be able to receive compensation. The same goes for cases where employees were unfairly dismissed. Of course, it’s always best to talk to an employment lawyer to find out about your options.
Use your savings
We know it can be horrible to use your savings that you’ve worked so hard for, but if you don’t have any other option, there’s no shame in using your savings to help you cover the bills until you’re back on your feet.
However, you shouldn’t do this if you don’t have to, and you should always use as little of your savings as possible. Once you’re back on your feet, you can set up a savings plan to help you build your savings back up.
Look for a new job
Losing your job is incredibly hard, and many people simply want to wallow in their sadness for a while. This is understandable, but it’s not always responsible. Most people need to work in order to survive, so the best thing you can do for your finances is to put yourself back out there and look for a new job.
And of course, if you do end up landing an amazing new job, you will probably feel much better about yourself. If you haven’t been on the market for a job in a while, it may be helpful to write a new CV.
Consider alternative income streams
Even if you immediately start job hunting, it can be a while before you actually get a new job, and even if you do, there is always the possibility that you won’t be earning as much as you did. This is why it can be helpful for you to consider some alternative income streams. You could consider freelancing, selling some old items that you don’t use, or you could look into withdrawing money from any investments you may have. If you don’t have investments, you should consider investing in the future once your finances are stable, so that you do have this extra source of income. You can click here to learn about a few investment opportunities.
