Laid Off? Six Steps to Manage Your Finances
Due to the recent economic recession, no one is now safe from layoff. No matter whether you’re 22 or 52, it may be possible that sooner or later, you will find yourself out of work. Thus it is better to plan ahead for the worse.
While most financial advisers suggest saving an amount equivalent to six months’ salary, to keep you going if you lose your job, but you will probably need more, especially if you have to support a family as well.
Here are six tips to help you out in bad times:
1. Determine How You Are Spending Your Money
When there is a running income coming, most people do not think about how they spend their money. Most of the people don’t pay any attention to daily spending and that is where most of the money goes. Being more aware of how you spend your money will cause you to spend it more carefully.
2. See Where You Can Cut Back
If you’re laid off, you will need a plan for cutting back on expenses. Try to make a budget that excludes most unnecessary expenses, but in order to keep up your spirits, don’t completely cut out on entertainment budget. Find some inexpensive places to go out to eat and drink. Go to movies instead of plays, and look for discount admissions. Find ways to cut back, but don’t make yourself feel depressed.
3. Avoid Major Purchases
Now is not the time to buy a new car or DVD player. Furthermore, if you are already in debt, you may want to consolidate your loans into a single monthly payment with a lower interest rate.
4. Negotiate a Severance Package
You will probably be offered some severance when you are laid off. Although you should have negotiated it when you were hired in the first place as that is the best time to bargain. But you can still try to negotiate a better package at the time you are terminated.
5. Take Advantage of Available Programs
Take advantage of the numerous governmental programs that have been made available to help you in the event of a layoff. You will most likely be eligible for unemployment insurance. You may also be eligible for training, loans or unemployment while you set up your own business.
6. Find Part-Time Work
Instead of wasting your time while you look for another job, consider working part-time meanwhile. But do keep in mind that your primary job is to find a new job. Any part-time job you get should also give you the time and flexibility to actively pursue your job search.
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