Being laid off can be difficult, both emotionally and financially. It is important to manage your finances wisely during this time of transition in order to make sure you are making the most out of your new situation. Here are tips on how to effectively manage your finances after a job layoff.
Create a Budget
The first step in managing your money after a layoff is to create a budget. This will help you get an accurate picture of your financial situation and allow you to adjust accordingly. To do this, make sure to list all of your fixed expenses (such as rent or mortgage payments), variable expenses (groceries, gas, etc.), debt payments, and any other necessary expenses. Once you have done this, you can begin to figure out where cuts can be made if needed.
Adjust Your Spending
Given the change in your employment situation (i.e. you’re not employed), you can’t be spending money the way you did when you had a job. For example, you should skip going out to eat or indulge in that Venti Mocha Frap. If you don’t want to give them up cold, dial down the frequency or change the size of your drink orders down. Doing this will help you make sure that the money you do have is used for necessities and not wasted on frivolous things.
Here are some 6 other lifestyle changes you can do to minimize your spending:
- Review your utility bills (electricity, phone, etc.) and look for ways to lower them.
- Cut out any unnecessary subscriptions (e.g. streaming services).
- Shop around for the best prices and keep track of sales and discounts at stores you frequent.
- Find free or low-cost entertainment options (e.g. a local community park).
Take Advantage of Unemployment Benefits
Did you know that the government offers grants and financial assistance programs to those who have experienced a job loss? Australian labor law has provisions to help individuals who have lost their jobs.
If you have been laid off due to no fault of your own, it is likely that you are eligible for unemployment benefits. These benefits can provide much-needed financial relief during a period of transition or job hunting. Be sure to understand the specific requirements for unemployment benefits and take advantage if applicable.
Look for Other Sources of Income
While looking for another full-time job may seem like the best option, it is not always feasible in the short term.
During this time, check out any gigs you can get into. From freelance writing to virtual assistant jobs and even pet sitting, you can find something that fits your skill set and income needs. You may also consider looking into part-time gigs online or in your community as they can
You can search online for freelance or part-time jobs that you can do from home and still make money. Check out some of these sites for these types of gigs:
These sites can help you find part-time work to supplement your income and give you some extra cash while also giving you the flexibility to look for full-time work.
Sell Some of Your Stuff
You may also want to consider selling some of your unused items online or creating a side hustle such as tutoring, pet sitting, or babysitting. These sources of income can help provide short-term relief while you look for another job.
Take the Help Where You Need It
It’s understandable that taking help from friends and family doesn’t always feel comfortable, especially when it comes to money. However, if you’re in a tight spot and need help, take it where you can get it.
If your friends or family are willing to assist with cash, they usually don’t expect to be repaid. If you’re still uncomfortable asking for help you can take small personal loans to help get you through this bump.
The most important thing is to stay focused and not give up. Take care of yourself and your finances during this time—it could pay off big in the long run!
It is important to remember that times of transition can also be a time for growth and personal development. Take this opportunity for self-reflection and clarity. And most importantly, remain positive and keep a good outlook.
Coming up with an effective plan to manage money following a job layoff is key in making sure that you are able to stay afloat financially while transitioning into new employment opportunities or exploring other sources of income.
By creating a budget that works for you and taking advantage of any government assistance available (if applicable), as well as looking into alternative sources of income through freelance work or side hustles, you should be able to effectively manage your finances during this time and come out even stronger than before.
You have the power to not just survive but thrive during this time of change. Stay positive and focus on the future and all the opportunities that may come with it!
Article contributed by Kristen Chapple
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