Money Talk

How To Manage Your Finances After Losing a Job

Apr 8, 2018

Losing a job is never an easy experience, but there are ways to handle your finances during this time. We suggest these four ways

Whether you are retrenched, fired, resigning or are in the early stages of starting a business it’s not easy losing any source of income, especially if you are used to a certain lifestyle. No one, no matter your age can ever be okay with losing a job and financial independence this is why it’s very important to always save as much as you can, especially for rainy seasons such as these. It’s often advised that you should save enough money to carry you through six months after being laid off. This discipline may be hard to fulfill, especially if you are a breadwinner and find yourself having just enough money for transportation during the month. So, how can you adjust after losing your job?

Draw up a budget book and see where you can cut off your expenses: There are certain things you can do without, during this dry season, such as clothing accounts, gym membership fees or eating out. Cut off unnecessary expenses that will weigh you down financially. Find affordable or cheaper alternatives to your spending habits.

Make that urgent call: It’s time to speak to your financial institution and inform them of your situation. Find out if you can lower your payment options or to freeze your debts for a few months. Either way, you have to have that uncomfortable conversation with your creditors to find suitable solutions for everyone.

Find creative ways of making money while looking for employment: If you are good in baking, a certain school subject or are a great make-up artist offer your services to relevant people for a fee. Ask family and friends to refer you to people who might need your services, and use social media to promote yourself.

Always have an emergency savings account: No matter how little it can be, make sure you have money saved up when you find employment. Not only is it a necessity but it’s a financial gift to give yourself because life presents uncertainties you can’t afford to not prepare for.

Have you lost a job? How did you handle your finances?