Financial concerns may be uppermost in your mind when you are laid off or retrenched. Do you have a contingency plan? If you do not have one, then it is recommended to plan one now. The areas you need to look into are:
1. Your debts
If you have debts, you may want to list them out and plan how to tackle them. If you had been planning to take out a new loan or do something that cost a lot (e.g. renovating the house, buying a second car, etc.), it is advisable to postpone the plan.
2. What are your important expenses?
Expenses that are considered “needs” must be given priority first like food and medical expenses. Being cautious and prudent with your spending is also wise until you can find another source of income to replace your old one. List down your essentials and non-essentials as well as recurring monthly bills.
If you have been tracking your expenses, then you would have an idea what is your monthly expenditure. If you need help in this area, get the free ebook entitled “The Wise Parents Money Strategies” for guidance. When you subscribe to the Wparent newsletter, you also get three spreadsheets to organize your personal and household finance.
3. Prepare to make changes in your lifestyle
When the family is dependent on one income only (if the other partner is working), expect some changes to your lifestyles. Logically, the family cannot expect to maintain the same lifestyle on less income.
You may have received some amount of compensation from your previous employment. However, unless you have a new job in the near future, this money is needed to see you and your family through during the gap period.
4. Temporary work
During your search for a suitable job, you may also consider to take on some temporary jobs or freelance work. One good thing about doing this is it prevents you from feeling down and instead it helps you to focus on the future. To learn about moneymaking ideas, read my previous article “Moneymaking Ideas For You“.
5. Life changing decisions
Where necessary, you may need to make life-changing decisions. For example, if you are unable to keep up with the house loan or mortgage payment, you may need to move the family to an affordable place or to move in with a kind relative temporarily. Another example is if the new employment is located at a different place, the entire family may need to relocate in order for you to take on the new job.
The above are only ideas to start you off thinking about your financial situation. People who have been laid off tend to sink down to depression. During this time, there is a tendency to avoid dealing with pressing personal, financial or family matters. Therefore, it helps to understand the emotional phases you would expect to go through. Read the previous article entitled “What Happens When You Are Laid Off?”
Do you have an advice to share on the above? Please feel free to voice it out.
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