The Trials and Tribulations of Job Loss

Nobody expects to lose their job but it can happen to anybody. As we’ve seen in recent years, a sudden financial crisis can lead to redundancies on a huge scale. While you may be awarded a severance package, this might not last very long. You could find yourself running out of money before you have managed to find a new job. If you are not in a financially stable position, you could risk massive amounts of debt or even bankruptcy, leaving you struggling to survive until you can find more work. There are ways that you can avoid this, and cope with job loss.

Plan for the worst

When you are in work and your finances are in a healthy state, it is a good idea to start planning ahead. Putting a small amount of money aside out of every paycheck will help you build up a strong savings account. In future, you may be able to use this money for something different, but it will give you a vital buffer if you do lose your job. Whether you have a severance package or not, having a lump sum of money to pay your expenses while you find a job means that you don’t have to rely on credit cards and loans to survive.

If you do not already have a savings account, click here for information on the best ones that are available at the moment.

Assess your finances

If the worst does happen, having a good plan is vital. Now is the time to assess your finances and work out exactly how much money you have. Draw up a budget that includes every single one of your outgoings. From here you can work out exactly how long you have until that money runs out. Putting a time limit on yourself will help to motivate you when finding a new job.

When you draw up your new budget, you will have to cut costs. Eliminate any of the luxuries that are not completely essential, you can always add these back into your budget once you are earning again. A few simple ways of cutting costs include switching off electronics and lights when not in use, and buying in bulk at the grocery store.

Government Benefits

Many of us are too proud to ask for help. Unfortunately, if you have followed the previous steps, and still find yourself in serious trouble, you might have to. The government offers help for people in your situation and, if you have been working previously, you should be eligible. It might hurt your pride, but there is no shame in asking for a bit of help, and once you are working again you will be repaying the money you have taken out. To find out exactly what you are entitled to, visit https://www.usa.gov/unemployment.

Manage Stress

Unemployment can be difficult. With the bills mounting and the money running out, it can be easy to panic. But you need to avoid this at all costs. It will only impair your efforts to find a new job and make the situation worse. There are a number of ways you can manage stress, including exercise and healthy eating.

If you follow these steps, you should be able to tackle a job loss head on and come out the other side in a stable position.