NO MATTER HOW WORRIED YOU MAY BE ABOUT LOSING YOUR JOB DUE TO STRESS, COVID-19, OR OTHER REASONS, IT IS IMPORTANT TO HAVE A PERSONAL FINANCIAL PLAN.
Everyone has been there. We wake up panicking and it’s over. The problem is that most people don’t have a personal financial plan in place for when they lose their job.
Even though it might seem unproductive and absurd, deep breathing is essential. There are many reasons why people are fired or let go. It doesn’t always come down to you or your work. Some things are beyond your control. It is okay to take an entire day or even an hour to process it all so it doesn’t overwhelm you.
Personal Financial Plan: Re-examine your financial situation.
Take a look at how much money is available to you. You can view all my bank accounts, credit card debt, and student loans using an app. Although this isn’t necessary, it’s a smart idea to keep track of every dollar. To get an idea of your financial situation, take a look at your finances. This is important, even though it might not be pretty.
Below is an example of a monthly breakdown that will help you determine how much to spend each month and build your personal financial plan.
- Apartment & Utilities
- Internet & Phone
- Food & Clothes
- Car & Home Insurance
- Other expenses
Health insurance is an expense. It is likely that your former employer would have provided it. Talk to your advisor to determine how long it will last. You may need to buy supplemental insurance until your job is found.
A savings account offers mental security and is one of the best investments you can make in your life.
In the event of your job loss, you should have an emergency fund. An emergency fund can cover rent, mortgage, food, and any other expenses your paycheck does not usually cover. A majority of emergency funds should cover at least 4 to 6 months’ worth of expenses. If you don’t have an emergency fund, these tips can help.
Personal Financial Plan: Cancel monthly subscriptions and purchases.
If you’ve just lost your job, you shouldn’t listen to Spotify or watch Netflix. You should cancel all subscriptions you have paid money for until you get a job. It may be a great way to relax while waiting for job offers. However, it is important that you save as much as you can until you find a new job. You might borrow money from your parent or friend to save some money temporarily.
Do not buy crazy things thinking you’ll get a job next week. If you don’t have a signed contract with a company, I recommend you not shop at the mall or buy gifts. If you can, cancel any flights, races, or trips. Ask about a refund. Even though it might not always be possible, every little bit helps.
Personal Financial Plan: Ask to defer payments.
Because they prefer late payments to nothing, many companies will work with customers in difficult economic times. Many student loan companies will consolidate loans and defer payments. Banks may be able to defer your mortgage payments or assist you with your options. Sometimes, all you need is a call to inquire.
Personal Financial Plan: Budget and eat at home.
People spend most of their money on food and dining out. If you’ve just lost your job, avoid going out with friends. Ordering in. It may not sound very attractive, but cold-cut sandwiches, peanut butter sandwiches, and jelly sandwiches helped you get through those dark years.
You will see immediate savings in your bank account once you understand where you can save money. Spend it. This is the best way of having more money.
One of the best ways you can reduce your spending is to pay for food using cash. Because they can see how much money is leaving their pockets and how it leaves behind, people are more selective about what they buy.
Personal Financial Plan: Apply for unemployment.
If you are looking for work or lose your job, you can file for unemployment. You will need to file a claim with the Department for Labor and Employment and prove that you are actively looking for work every two weeks, depending on where your residence is.
While it won’t be glamorous and you will not meet many interesting people, it will be an enjoyable experience.
Unemployment benefits will pay a small portion of your salary. This is done to lessen the economic impact of unemployment.
This is the best time to update your resume. You should include your most recent accomplishments, volunteer activities, job references, promotions, and other relevant information. When you start your job search, you want to be at your best. This applies to more than your resume. It’s crucial to keep your LinkedIn, Facebook, and other social media profiles current in order for employers to find you better.
Don’t worry about how your resume looks. It doesn’t matter how professional your resume looks. Many companies require that you copy the exact same information into their online forms, which can sometimes be very poor. You can still apply for jobs through their site if your LinkedIn account is up-to-date.
YouTube is a great place to learn about yourself even if time is tight. YouTube offers great tutorials on exercise and programming classes (if you’re interested in high-paying job opportunities), as well as an opportunity to learn Microsoft Excel. This is a great way to start a new career and get a job that requires different skills.
Personal Financial Plan: Let everyone know you are interested in a job.
It may be embarrassing to tell anyone that you are jobless. You may feel vulnerable in this situation and believe that there is something wrong. It’s not. It’s not unusual, and it’s a multibillion-dollar industry. You are not the only one who is constantly moving and changing jobs.
Many people will help you if they know that you are seeking work. Many people are willing to share information or recommend others within their industry. If you have more people in your team, your chances of landing a job are greatly increased.
Personal Financial Plan: Sell your old stuff to make extra cash.
If you’ve just lost your job, you might think about selling extra items on eBay and Craigslist. Selling all the junk in your apartment or house, including old bikes and snowboards, could net you a few hundred dollars. It is a great way for extra money and can be very rewarding to get rid of junk.
Personal Financial Plan: Write articles for money.
It’s possible to write a blog, and then find sites that will pay you for it. This is a great way for you to earn extra income even if you’re not working.
Although it is scary to lose your job you have many resources online to help you find work or supplement your income.
THIS WILL MAKE LOSING YOUR JOB LESS SCARY AND ALLOW YOU TO PLAN FOR A FUTURE.
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