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How to Be Financially Stable When You are Losing Your Job

In amid of the pandemic, your employer can make you redundant anytime because of the economic uncertainty. When cash is not coming in, it is hard to pay the staff. When your employer asks that they need to move the furniture around, you might get shocked because your job may be the only option to live off. 

You might be cantankerous and bleat on how badly you have been treated, but if you step into your employer’s shoes, you will realise that is the way the cookie crumbles. You are not alone who is likely to lose your job. Even though you have been working sincerely, your employer may let you go. Before that nightmare comes true, you should immediately take hold of your finances. 

Take stock of your spending

Most of the people whittle down their spending when they are facing redundant. When you are on benefits, that becomes the necessity. You have no other way around to keep the wolf from the door. Since you have foreboding that you can lose your job anytime, you should start cutting back on your spending right away. 

Get some time and look over your bank statement to get to know your monthly expenses. Categorise them into essential and discretionary expenses. Try to cut down on discretionary costs like money you spend on subscriptions, takeaways, dine out, night out, and the like. 

You may not find it worth doing, but you will be able to save some money at the end of the month. If you continue to do so over months, this will add up. The more money you save, the better it will be. You can dip into it when an emergency pops up. 

Having some money in your savings will allow you to be less dependent on fast loans with no guarantor. If you still need money, you will not need to borrow a large amount. Try to save on food. Buy them in bulk from thrift or wholesale stores provided you finish all perishable items before they go off and do not throw leftovers into the trash can. By following these ways, you can save more than you expected. 

Prioritise savings

Cutting back on your spending is one aspect of saving. You will need to stash away some chunk of your income every month. It can be 5, 10, or 20% depending on your monthly income. You will have to be consistent with your saving effort. 

If you are not able to set aside for different saving goals like maintaining emergency cushion and retirement funds separately, do not worry. Keep your money in one account and dip into it in case of an emergency, but keep transferring money every month to the savings account. 

Invest your money

The investment will help you earn money from money. You do not need to be an investment expert. As long as you have basic knowledge about investing in stocks, bonds, and mutual funds, you should not hesitate. 

You can also hire an investment expert who can brief you about the market, so you do not lose money. Although invest is a great way to earn money, it is subject to market risks. You must know when the right time to invest your money is. 

You need to set investment goals and ensure that your investment aligns with them. It is also crucial to calculate your risk affordability. If you ignore this factor, you will lose money instead of making it.

Find out additional work

Although you have a current job, it does not mean that you should sit back. You are not confident that you will serve longer in your company. This is why you should immediately start finding out more work. Do not need to wait for the time when you will be made redundant. 

It is better if you have a backup. In case you lose your job, you will have money coming in to meet your regular expenses without any problems. Of course, you cannot do a full-time job along with another full-time job. Try to get part-time or freelance work. There are various online sites offering jobs to freelancers. Sign up and grab projects. 

Manage debts

If you have outstanding debts, try to find a repayment plan that allows being free from the obligation as soon as possible. A rule of thumb says that you should try to avoid having an outstanding debt when you have no job. 

Even if you have a part-time job, it can be hard to keep up with repayments along with recurring expenses. Another reason for being debt-free at that time is you can easily qualify for loans for unemployed. Direct lenders usually do not approve such loans when you have already other debts to pay off. 

If you think that you can lose your job anytime, you do not need to be anxious. Instead, you should find ways how you can be financially stable even after losing the employment. Take control over your spending, manage debts, find out work, manage debts and invest your money. The more carefully you utilise your money, the better. 

Description: If you are losing your job, you can still be financially stable. This blog discusses what you should do before you are made redundant. 

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