After losing employment it is vital to get your finances in order so you can meet your financial obligations. Even without your employment you will still need to pay rent, buy food and pay bills. The situation can be tricky as money is tight and you risk draining your savings. However, you can survive unemployment by employing certain straps and strategies.
The first step is to cut luxuries from your budget and limit your expenses to only necessities for the period you are unemployed.
Start looking for jobs whether temporary or permanent. Even though it is not your ideal job, getting some income is important. Taking some months off after losing your job may be costly hence you should take immediate action. While most people think that they will immediately get their ideal jobs just after losing their jobs and are picky in taking jobs, this is often a wrong idea that can cause you to lose valuable connections.
While shifting from permanent employment to temporary employment and losing your job status and decent salary is challenging but you will continue job hunting from your temporary employment. Furthermore, the temporary job may gradually become permanent. You will meet new people at your temporary employment that may help you find a desirable position. A key factor in job hunting is often about who you know.
- Don’t burn bridges – this is a costly mistake many people make. Taking your frustration out on your former employer may have negative consequences as he might not reference you to your next job. Your former employer may even employ you for part-time jobs. An embarrassing exit may hinder your chances of getting the part time job or give you a negative reference. Get in touch with people that can help you get a job. Try not to disturb them by taking too much of their time but ask for even ten minutes and express your employment needs.
- Cut back – Thoroughly check your list of expenses for any luxurious expenses you can eliminate. You can reduce or drop cable, cell phone minutes and movie subscriptions as they are not a primary necessity. Leave an occasional chance to enjoy luxuries and find cheaper alternatives. Though it may be hard to cut back some of the luxuries you are accustomed to, you will adjust in a short while. Some of the habits you may consider getting over include driving around while you can save on gas money. Another cheaper alternative is sharing food with friends to reduce the cost incurred.
- Weekly cash-flow plan – While making a monthly budget is easy a weekly budget will direct your next financial steps. A weekly budget enables you to control your entire budget effectively. The weekly budget will also remind you of your financial obligations. Carefully plan and prioritize your bills. While paying your creditors is important major priorities such as food and rent should be paid first.
- Seek to understand why you got fired. Understanding the reasoning your employer had while firing you will help you become a better employee. It may be embarrassing to ask why you are fired but will help you step from a situation and become a more valuable employee.
Sourced from: Dugout
Photo by kate hiscock / CC by