How do you protect your finances after losing a job? Losing a job is always a rude shock. Whether the result of bankruptcy, redundancy, or another form of dismissal, it can leave a hole in your life that is difficult to refill. For some advice on how to keep your head above water during this time, Swoosh is here with 5 tips on protecting your finances.
Utilise Benefits and Entitlements
In your time working for the business, you will have been entitled to a certain amount of benefits and entitlements, such as health insurance, annual leave or (if in the event) redundancy packages. Even though your time with that business might be at an end, be sure to re-read your contract and engage in an exit interview, as you might still be entitled to receive them. For example, you may have accrued leave owed to you, or your insurance coverage may have extended beyond your end of employment. Not only will these soften the financial burden to come, they are also a good basis to build your future budget around.
Some of us spend years cultivating a career that will carry our weary selves into retirement. To lose a job whilst in search of establishing such a career can be a disheartening experience, and the prospect of working in another industry, simply to pay the bills, is even worse.
Unfortunately, it can often take a long line of interviews before we find the jobs we love. A great way to stay financially afloat is to have short-term jobs solely as cash influxes. Sign up for employment agencies and see what offers you get. Casual and part-time work is often very flexible, and you could potentially juggle several at once, if you wish. On the other hand, if you have a refined set of skills, why not consider freelancing until you find something more permanent? You might even find that losing your comfortable job was a blessing in disguise, and realise a passion of starting your own business.
Apply for Unemployment and Jobseeker Assistance
With today’s job market as unforgiving as ever, you may find yourself without work for a considerable amount of time. Interviews will end with you being either underqualified, overqualified, too old, too young, not having enough experience, or simply not fitting the ‘mould of what we’re looking for’. It’s infuriating, but it is also the sad truth.
Depending on your situation, you might be eligible to apply for unemployment benefits and jobseeker assistance whilst you are in this interim phase of your life. These are government subsidies, and reserved for people who genuinely require it. If you have several thousand dollars tucked away in bank accounts and assets, then you will be probably advised to utilise them for your expenses first.
Drastically Limit Spending
Breaking spending habits developed whilst in a comfortable job can be hard. Just remember, spending more money than you have coming in is a slow road to poverty, but when you have no money coming in at all, it’s more like a slip-and-slide.
Hopefully you won’t be unemployed for long. Until you have a stable income back in your life, however, it is good practise to postpone holidays, cut down on leisure activities, and, yes, having those tinned beans for breakfast and ramen noodles for dinner every now and then. It might be hard (and will likely not be very enjoyable), but it will give you the best chance of surviving financially between work.
After losing your job, take a day or two to let it all sink in. No rash decisions. Then, realise that you are in a position where your funds are not going to be as accessible as they once were. Look to your future and be realistic. How long do you think you will be unemployed? Is the job market crying out for people in your line of work? Will it take a week, a month, a year? Be practical and allocate your predicated expenses for that period, including rent, bills, and basic groceries. You will get an estimated picture of how much money you will always need at hand, which is a great basis to begin budgeting.
Are you in a position where you need an injection of finances? Swoosh offers personal loans with amounts ranging from $2100-$5000. With simple, fixed term repayment schedules that can easily be integrated into your weekly budgets, they are a perfect way to help you get back on your feet. For more information, get in touch with the friendly team at Swoosh today.