Anyone, young or old can have the misfortune of being laid off. The economy is such that it has become much more prevalent than it has in the past. There are ways you can survive a lay off if you follow these tips about how to manage your finances.
How is Your Money Being Spent?
When you are feeling financially flush, there isn’t much thought to how you are spending your money. Most keep track of the important expenses such as car payments, rent or mortgage payments. But as to your daily spending, not many pay much heed. When you are more aware of how and where your money is spent it will cause you to plan wisely. Utilities must be taken into account as are grocery bills and gas for your car.
Devise Ways in Which You can Cut Back on Your Spending
If you know that a lay off is inevitable, you are well advised to begin making a financial plan that will help you through the crisis until you are able to find another job. Cut out unnecessary expenses such as movies, dining out and buying designer clothing. That is not to say you can’t still enjoy yourself; just find ways that will greatly pare down the expenses. You can go to a matinee movie instead of a featured show time; you can find places where it is much less expensive to buy a meal such as all you can eat buffets. Even by turning your thermostat down a few degrees in winter can save you money.
Don’t Buy Big Ticket Items
If you have been laid off, it is the worst time to go out and make big ticket purchases. Do you really need a brand new car or the latest in electronic equipment right now? If you have already managed to accumulate a lot of debt, adding to it will not help your financial picture when you are not bringing in a steady income.
The Severance Package
When you were hired for your job, you probably gave little thought to the negations concerning a severance package should you be laid off. This is a mistake many people make when starting with a new company. Be sure you have negotiated a fair deal for yourself before you need it and if you haven’t done so, don’t let it stop you from trying to get a better deal now that it is lay off time.
Take a Part Time Job
Even if the job is not your ideal and the hours offered aren’t as many as you’d like, at least having some source of income may ease the burden while you are still looking for gainful employment. A part time job will bring in money and allow you to still have time to beat the pavement looking for employment you are more qualified to do with a higher salary. There is no shame in taking a cut in pay when you are laid off and this is especially true if you have familial obligations that must be met.
By making a few changes in your spending habits, getting laid off doesn’t have to be the disaster you envisioned. Follow these simple tips and you can weather the financial storm.
Nice post Clint, your tips are really helpful.
Part time job is a good option for overcoming the situation.
You explained very well that how one can make a complete financial plan and stick with it. During such circumstances, it is very important to monitor and control the expenditures according to financial needs.
Jeff Clair
Great information. That is definitely the time to really watch
your expenses. If you don’t the money you do have will
quickly disappear. May want to hang around some good
friends that will cheer you up and keep you motivated.
(that part has nothing to do with finances but thought i
would toss it in anyway).