No one is immune to being laid off, no matter your age or professional level. That’s why it’s important to be prepared and plan for situations like that. Most financial advisers suggest that you should have saved the equivalent of your 6 months salary. This might not be enough, especially if you are the primary caregiver, but it would help you while you figure out how to proceed.
Since nobody expects to get laid off, most times, job loss meets people unprepared. If you’ve been laid off with no previous plans, here are some ways to manage your finances until you get something else.
Be clear about your benefits
Many people are so confused after they are laid off that they forget to find out what benefits they are entitled to from their former employers beyond a severance pay. Your benefits could include as access to a career counsellor, help with your CV, access to an office space to enable you to start a new job search with no stress, etc. If these are not included in your benefits but you are still on good terms with your human resource department, you could ask for their assistance.
Pay attention to your daily spending
Most times, when we have a steady stream of income, we tend not to pay close attention to what we spend money on daily. We know what the big bills cost, such as rent, utility, but not the little ones. When you pay closer attention to your money, you tend to spend it more carefully.
Restructure your budget
Know what things you need to eliminate to enable you to save money. Recreate a new budget that doesn’t cover unnecessary expenses. Your main focus should be on rent, food, and utilities. Avoid take out as much as you can, surf for deals, but don’t completely cut out entertainment as you need to keep your spirit up.
Find a part-time job
The best way to stretch your income is to look for additional ways to get money. Your part-time job doesn’t necessarily have to be in your current field but can be a hobby or any other field that offers a possibility. Ensure that your part-time job gives you time and freedom to enable you to continue your search for a new job.
Ask for help
Don’t be too embarrassed to ask for help from people. The sooner you let people close to you know you’ve been laid off, the faster it is for them to help you find something new. Let them know what your role was and what industry you were working in, so they know what to look out for. Send an email out to them with your resume attached, so they have it handy.
As soon as you can, start networking. Now is the time to pull out the contact details of former colleagues, connections from previous events, etc. Once you have re-established a connection, you should let them know what you want and send an email with your resume, so they have it at hand for when they need it.
Losing your job isn’t the end of the world. It might only last a couple of weeks. But if you have to stay long periods without a job, following the tips above might help you fare better during that period.