One of the most difficult situations in life is to lose your job. A lot of questions start plaguing your mind – how you will pay the bills, the rent, utilities, and other expenses? However, it is not the end of the world. You can find your financial footing and eventually a new job.
This is how you can go about it.
- Immediately Call Your Credit Card Company
Suddenly losing a job is really stressful. And the possibility of not being able to pay credit card bills can add to more stress.
If you have monthly credit card bills to pay, inform your credit card company about the loss of job immediately. They might be willing to work with you and understand when you miss a payment. They might give you some options that can help you with the payments.
- Prioritize your Expenses
Next, take a look at all the bills you are responsible for paying. Prioritise the bills you need to pay first and which ones can be delayed.
- Cut Down Your Spending
The expenses you can live without, ditch them. Spend only on what is absolutely necessary.
Cut out all the non-essentials like cable, gym memberships, and other subscriptions you don’t use or need.
If it feels like an extreme step, remind yourself that it is just a temporary phase and you can readjust your spending once you find another job.
- Assess Your Savings
Look at the money you stashed away as savings. Assess how long you can depend on that. Consider severance pay or encashed unused paid leaves to stretch your savings.
Ideally, you should have some savings in an emergency fund that can sustain your lifestyle for at least three months. If that is not the case, cut down on your expenses.
Do not tap into your retirement savings or Pension Fund. Consider that as the last resort.
- Relocate to a New Place
This may sound like an extreme step but if you find a good opportunity in a different city, take it up. If you are hesitating to relocate to a new city because it may be expensive, apply for a line of credit. It will help you move and settle into the new job.
Don’t let panic set in when you lose your job. It is possible to walk out of it without taking a financial hit. Just take the right measures and you will find yourself in a safe financial spot.