5 Tips to Protect Your Finances After Losing a Job
How do you protect your finances after losing a job? Losing a job can come as a surprise and shock. Whether the result of bankruptcy, redundancy, or another form of dismissal, it can leave a hole in your life that is difficult to refill.
To make the next chapter of your life somewhat easier, Swoosh has you covered. Here are 5 tips to protect your finances after losing a job.
Overview
- Utilise Benefits and Entitlements
- Short-Term Work/Freelance
- Apply for Unemployment and Job Seeker Assistance
- Drastically Limit Spending
- Predict expenses
5 Tips to Protect Your Finances After Losing a Job
Some of us spend years cultivating a career that will carry our weary selves into retirement. To lose a job while establishing such a career can be a disheartening experience, and the prospect of working in another industry, simply to pay the bills, is even worse.
While you hope that you never lose a job, sometimes it is unavoidable. So it is a good idea to have a backup plan and a safety net for yourself if you ever find yourself without an income. We have 5 tips to help see you financially through the hard times till you find employment again.
1. Utilise benefits and entitlements
In your time working for the business, you will have been entitled to a certain amount of benefits and entitlements. This might include health insurance, annual leave, or redundancy packages.
Even though your time with that business might be at an end, be sure to re-read your contract and engage in an exit interview. You might still be entitled to receive them. For example, you may have accrued leave owed to you, or your insurance coverage may have extended beyond your end of employment. Not only will these soften the financial burden to come, but they are also a good basis to build your future budget around.
2. Short-term work/freelance
A great way to stay financially afloat is to have short-term jobs solely as cash influxes. Sign up for employment agencies and see what offers you get. Casual and part-time work is often very flexible, and you could potentially juggle several at once if you wish.
On the other hand, if you have a refined set of skills, why not consider freelancing until you find something more permanent? You might even find that losing your comfortable job was a blessing in disguise. You might come to realise a passion for starting your own business.
Check out our blog Tips for Beginners Trying to Make Money Online in Australia.
3. Apply for unemployment and job seeker assistance
With today’s job market as unforgiving as ever, you may find yourself without work for a considerable amount of time. Interviews will end with you being either underqualified, overqualified, too old, too young, not having enough experience, or simply not fitting the ‘mould of what we’re looking for’. It’s infuriating, but it is also the sad truth. Luckily, the government offers ways to protect your finances after losing a job.
Depending on your situation, you might be eligible to apply for unemployment benefits and jobseeker assistance whilst you are in this interim phase of your life. These aren’t always the most fun to apply for or continue getting. But they are there if you need them.
4. Drastically limit spending
Breaking spending habits developed whilst in a comfortable job can be hard. Just remember, spending more money than you have coming in won’t protect you for the future. If the worst has happened and you have lost your job, make a list of all your expenses and cut out any unnecessary expenses as soon as possible. A good idea is to consolidate any debt you have to save money on interest and fees. Read more about debt consolidation here.
Hopefully, you won’t be unemployed for long. But until you have a stable income back in your life it is good practice to postpone holidays. Also, cut down on other leisure activities such as dinners out. Sometimes tinned beans for breakfast and ramen noodles for dinner are not a bad idea. It might be hard but it will give you the best chance of surviving financially between work.
Check out some of our other blogs about budgeting and saving tips including 15 Money Hacks to Save Money for Your Next Holiday and How to Save Money on Groceries in Australia.
5. Predict expenses
After losing your job, take a day or two to let it all sink in and prepare for the future. It can be hard to know how long you will be unemployed and how much cash you will need to see you through. Be practical and allocate your predicated expenses for that period, including rent, bills, and basic groceries. You will get an estimated picture of how much money you will need at hand, which is a great basis to begin budgeting.
At the end of the day, losing your job isn’t the end of the world. There are always things you can do to protect your finances after losing a job. And we are lucky to live in a country that will lend a helping hand when you are down on your luck. So make sure to reach out to any government or community initiatives in your area if you do need a helping hand while you look for work.
