Losing your job out of nowhere can be a stressful experience. Suddenly you find yourself in an unstable situation, which can be painful and overwhelming.
While you are debating your next source of income, it’s crucial to make certain changes to ensure financial security until you get back on your feet.
Here are a few important tips you should keep in mind.
1. Talk To Your Family
If you are the sole earner of the family, then it’s important to involve everyone in this conversation. You shouldn’t have to bear the responsibility of making ends meet by yourself.
If possible, ask your partner to look for job opportunities. You and your family also need to discuss ways to reduce spending and save more.
2. Create a New Budget
Your current budget was created according to your monthly income. Now that you don’t have your regular income coming in, it’s time to create a new budget.
Consider your partner’s income, your severance pay, unemployment benefits, and any other source of income to make an emergency budget. Budgeting is crucial for managing finances during this turbulent time.
3. Apply For Unemployment Benefits
The government extends monetary support to people out of work. Specifically, you may be able to apply for ‘JobSeeker’ Payments, which financially help individuals searching for jobs. It would be best to apply for this benefit as soon as possible.
4. Minimise Major Expenses
Housing and transportation are two of the most significant expenses. If you live by yourself, it would be helpful to move in with friends or family and sublet your place. On the other hand, you can also consider moving to an affordable neighbourhood.
5. Limit Everyday Expenses
There are several small expenses that may seem insignificant but can add up over time. Try to limit your everyday expenses by looking for cheaper alternatives.
For example, instead of getting name-brand grocery items, look for items ‘on special’ that are usually discounted. Similarly, shop at charity shops and second-hand stores.
6. Revaluate Your Utility Plans
Electricity and gas are basic necessities for every family. While you can only reduce your consumption to an extent, you always have the option to shop for a better-priced plan.
We urge you to find and compare different energy plans available in your area and look for discounts. Alinta Energy is a leading provider offering competitively-priced plans.
7. Put a Hold on New Investments
Investing is a reliable way to grow your wealth and deal with inflation; however, you should avoid risky investment opportunities if you have recently lost your job.
You may feel pressured to make a quick profit to make up for the lost income, but that can quickly backfire and leave you in a worse financial position.
8. Start a Side Hustle
It can take weeks, months, or even longer to find a new job similar to your previous position. In the meantime, you should look for other ways to make some extra cash.
Starting a side hustle is an excellent way to bridge the financial gap. There are a variety of jobs out there.
You can drive for a ride-sharing app or work for a delivery service. Moreover, you can also share your expertise as a freelancer.
9. Invest In Improving Your Skills
Besides starting a side hustle, it’s also important to invest in yourself. If you are unable to find a suitable job, learning new skills and improving your resume will help you seek better opportunities.
We recommend a resume creator to make it easier for you to create a perfect resume, quickly and for free.
10. Wrapping Up
Besides financial repercussions, being out of a job can also have an impact on your emotional and mental health. We urge you to lean on your support system and seek professional help to navigate this life event.