Don’t let losing your job throw you into deep difficulty. Sort out your finances early.
Being made redundant doesn’t have to throw you and your family into financial trouble, although it’s likely to knock you about to start with. Stay on top of your finances by planning and setting a budget with the help of your financial adviser.
Know your financial status
So, why an Adviser?
Firstly, you need to know where you stand financially. Your adviser can help you do this by looking at your savings, the size of your redundancy payments and your total expenses over the coming months.
Your adviser can also take you through the types of redundancy payments you may be eligible for and help you understand the tax implications they may have. Some may be best directed into superannuation to help save on tax and for retirement.
Once you have a final figure of your available funds, you and your adviser can see how it stacks up against your total expenses for the next two to three months. This will give you clear insight into whether you’ll be in the money… or out.
Work with your adviser to set a budget
With a clear idea of your financial standing, your adviser can help you set an appropriate budget or offer suggestions on how to make ends meet. Alternately, there’s plenty of online templates available if you want to DIY, one of my favourite sites is the ASIC MoneySmart Budget Planner.
This may help you avoid any shortfall, assuming you don’t earn any income in the next two to three months. It may also trigger you to think of areas you can cut back on while things are tough.
Think of other ways
If cutting back on non-essential expenses is not enough to make up the shortfall, your adviser may suggest other ways you can manage your finances, including getting a part-time job. Others decide to turn hobbies into careers, or investigate driving with Uber, doing deliveries or hiring out a room or two on Air BnB whilst looking for full-time work.
Perhaps a chat with the bank or your loan providers will be in order.
Check if you’re eligible for government assistance. Talk to your adviser about the income support payments available to you.
Get back on your feet
Look at your job loss as a temporary setback and aim to get back on your feet as soon as you can. Maybe there’s a silver lining and things will be much better for you moving forwards. Reach out to your financial adviser for support. Opportunities to rejoin the workforce might be waiting just around the corner.
Try using online platforms like Seek or Indeed to job hunt. And make sure your LinkedIn profile is up to date. Many agencies now look at that rather than ask for a resume.
And good luck!