How to Survive a Sudden Layoff – Saving on Running Costs

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How to Survive a Sudden Layoff - Saving on Running Costs

Introduction

Getting laid off from a workplace is anyone’s biggest fear. And that fear increases and becomes more urgent when your company has been laying off employees, or is about to start laying them off. Once laid off, a plethora of questions start to cross our minds such as, “How will afford paying rent? How will I eat? How can I support my family without a steady income?” The good news is, if you suspect that you can be laid off, there are various steps to take so as to get your finances in order and prepare for the worst. Here are a few.

  1. Understand Your Budget

When you get laid off or sense an impending lay-off, you need to first understand your current budget. This includes needs such as food and rent, travel and hobbies, debt and savings. When times get tough, you will have to shift to a bare-bones budget. This means that your focus should shift to what you need to survive, and this includes needs such as food, housing, transport, and other basic needs.

Having this number on hand helps you to determine when to cut back on spending, and prepares you psychologically that your debts or savings may take a hit for a moment.

  1. Always Network

When you get laid off, always remember that the network you have is your “net” worth. When it comes to getting a well-paying job, it is all about who you know. That said, keep attending networking events, meet and connect with new people, join professional groups, and keep in touch will previous colleagues and old friends. This always helps get access to resources and people that can help you when you get an unanticipated layoff.

  1. Handle Your Debt

When you’re working, payment of debts and loans tends to take a huge chunk of your pay check. More so, when you get laid off, paying debts off becomes even tougher and stressing. That said, when you’re still working, make sure to pay these debts off, and avoid accumulating them as they could get more difficult over time. To apply for small loans that have affordable interests, visit https://www.zmarta.fi/lainaa-rahaa/pienlaina.

Until you find another job, you will need to save any money that might be required to pay for expenses in the near-future.

  1. Maximise Your Benefits

One of greatest benefits of having a job is the access to benefits. Definitely, you feel the pain of losing such perks when you are laid off. Therefore, take maximum advantage of benefits that you receive such as dental check-ups, doctor’s appointments and many more.

Also, having a copy of the benefits issued to you at the time you were getting laid off could be of utmost importance. You can always go back, and ask for the promised benefits that were not issued to you. They include benefits such as payment for pending leave days, or a one-month pay. Use them to your advantage.

  1. Find a Side Hustle

If you are enthusiastic about an activity that is outside your routine job, it could prove beneficial to consider about pursuing it as a side gig. These include hustles such as designing, free lance writing, web designing, artwork among others. Having a part-time activity diversifies your salary, which in turn reduces over dependency on just a single source of income should the current one disappear.

Conclusion

Unfortunately, lay offs have to happen, and they mostly happen when we least expect them. So, when you realise that a job loss is coming, it may prove worthy to put these tips into action. These tips will help you maintain a calm head when things start going sideways: thus, recovering from the setback becomes easier and faster because you are better prepared to handle any situation that is thrown your way.

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