Securing Your Finances After a Job Loss

Securing Your Finances After a Job Loss

Getting laid off is something that can happen to the best of us. It does not matter whether you have just started a job or have been at it for many years. The worst part is that you aren't usually privy to the fact that you're about to be laid off and this may come as a shock to most people.

If you are employed, it is a very good idea to always plan ahead. Always work with the mentality that the job can come to an end at any given time, and you will need to survive when it happens. Financial experts advise that you should be able to have enough to survive for 6 months.  This means that you should have in your savings an equivalent of 6 months’ salary to carry you through the rough patch.

Unfortunately, we are not always able to save enough. So what happens when you find yourself in a situation where you have no job and no income coming in, but you still have to survive on a day to day basis.

Watch your spending

When times are good, it is so easy to spend because you're not worried about how you will replenish the money you are spending, because you have an income at the end of the month after all. However, when you no longer have a job you have to be very careful about how and what you spend your money on.

Think about cutting back on some expenses. For instance, use a train instead of a taxi, eat more at home than in an expensive restaurant and shop in bulk. Now would also not be the time to make major purchases. Keeping a record of expenses will make it clear to you where your money is going and what you can do without.

Talk to HST Lawyer Toronto and other financial experts to make sure your finances such as your credit card debt, mortgage payments, tax returns, amongst others are in order.  Keep a close eye on your credit ratings by getting statements from credit agencies.

Prioritize your spending, pay what is most important first, for example; rent, mortgage, and food shopping.  Dining out or travel are luxury items that you can do without for a short time as you work on getting back on your feet. Things like cable or new clothes might feel like a need but you can actually do without them

Apply for assistance

Apply for unemployment benefits to tide you over as you look for employment.  Some states will even give you medical and insurance benefits. Take advantage of training programs and business loans that are given to those without work.

Being out of work can be tough for anyone. Learning how to live on a budget when you've never had to do it in the first place can be hard for the best of us. If you are working, make sure you save as much as you possibly can by watching you’re spending so that if you find yourself in the situation where your job has come to an end, you can comfortably survive for a period of time as you look for other work.

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