Thursday, September 27, 2018

The Right Way To Deal With Unexpected Job Loss

Job loss is always a difficult situation but it’s a lot easier if you can see it coming.
If the company isn’t doing that well and there are whispers of redundancy around
the office for a few months beforehand, you can start building up some savings and
putting the feelers out for another job. It’s still going to be a tough period while
you’re out of work but you’ll be more prepared for it. Things get really hard when
job loss comes out of the blue and you’re completely unprepared for it. It’s easy
to panic and let things get on top of you but that’s the worst thing you can do.
If you’re worrying and not thinking rationally, you’re not going to be able to
manage your finances properly and find another job. It’s essential that you
remain calm and follow these simple steps.

Review Your Finances

When you’ve just lost your job, you never know when the next paycheck is coming.
That’s why it’s so important that you review your finances immediately and not a few
months down the line when your savings account is almost dry. You need to know
exactly how much money you’ve got so you can work out how long you can survive
for without a job. Look at all of your savings and then divide that figure by the
amount that you spend each month. That should give you a rough idea of how
long it will be before you start to run out of money.

When you’re reviewing your finances, it’s also important to see what money you’re
entitled to in the form of benefits etc. If you’ve been made redundant, you should
have a severance package. Add this to the rest of your savings and adjust the
figures accordingly. If you’re out of work because you had an accident, you
should be eligible for injury at work compensation if it wasn’t your fault. The
process can take a while and if you leave it too long, your employer could update
health and safety, making it harder for you to prove that they were at fault. If you
think you might have a claim, get in touch with a lawyer right away so they can
record all of the information they need and get the wheels in motion as soon as
possible. That money will come in handy later on when your savings start to dry

You should also look into any unemployment benefits you might be entitled to.
They’ll really help you to keep your finances in order if it takes you longer than
you thought to find another job. People are often too proud to accept that kind
of help, but you’ll regret it if you don’t.

Write A Budget

You might already have a budget, but that was a budget for when you were
earning. Now that you’re playing with a finite amount of money until you can
find another job, you need to rewrite that budget and make some big adjustments.
You’d be surprised just how much money you could be wasting. The first thing
you need to do is make a list of all of the essential spending. That’s your mortgage
payments or rent, your utility bills, your food and your phone and internet bills.
Next, you should look at all of the other luxuries that you’re spending money on
each month. The bad news is, most of that is going to have to go for now. The
good news is that it’s only temporary and when you find another job, you can go
back to using your old budget. Now you need to see whether you can cut money
from your essential spending by reducing energy usage, shopping at a cheaper
store for groceries and switching to a cheaper cell phone plan.

Treat The Job Search Like Work

The biggest mistake that people make when they’re trying to find work is just
doing an application every couple of days and then spending the rest of the time
sitting about watching TV. You need to treat your job search like work. That means
getting up at the same time you normally would and spending the full day looking
for jobs and filling out applications. Adding that structure will stop you from getting
yourself into a rut and you’ll be able to find a job much quicker. Make use of your
contacts during this period as well. Get in touch with anybody that you’ve worked
with in the past and see whether they know of any jobs going. A recommendation
can go a long way.

The most important thing is that you don’t panic and you face the situation head-on.
Sort your finances out right away and find work as quickly as possible.  

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