How To Manage Your Finances If You Suddenly Lose Your Job

By BankBazaar | September 23, 2016

How To Manage Your Finances If You Suddenly Lose Your Job

‘You’re fired’ is certainly not what you want to hear! But when the time’s not right, you might end up hearing it. Well, once your boss has made this decision, you obviously can’t do much about it. Maybe you could’ve done something to save yourself, but alas, a time machine is yet to be invented!

The worst part about losing your job is your wrecked finances! You might have a lot on your plate like EMIs, rent, etc. Since you can’t do without these basics, you must figure out a way to deal with them.

Additional Reading: 6 Tips To Save Money In Day-To-Day Life

Here are some ways in which you can manage your finances:

  • Move in with your parents

If you’re living on rent, you might need to consider giving up your freedom for a while. Moving in with your parents might not sound like the best option, but it sure will save you from paying rent and will also help you get that deposit back from your landlord. If they live in a different city, you could consider moving in with a close friend or a relative for a while. You might not have the luxury of getting the entire house to yourself, but you sure will save a lot!

  • Look for freelancing options

There are numerous websites that offer freelancing solutions according to your profile. It’s time now to hit one of those or look for part-time job options through your friends or relatives. Once you get the hang of it, you could even get more than one part-time job and make a good living out of it. This doesn’t mean that you need to stop looking for a full-time job. Keep hunting and you’ll soon get your life back on track.

  • Too many loans? It’s time to renegotiate.

EMIs are an important and unavoidable monthly expense for most of us. When you lose your job, things change quite a bit and you might not be in a position to pay your EMIs. In such a situation, it’s better to talk to your lender and see if the terms of the loan can be renegotiated. They might extend your loan tenure, reducing your monthly instalments. Although the duration of the loan will increase, you’ll get respite from the heavy monthly instalments for a while.

  • Run a check on your investments

If you have a couple of investments, especially in SIPs, you might want to stop them for a while. Investments are good. However, if you’re already facing a financial crunch, continuously investing the stock market might not be the smartest thing to do.

Check This: Don’t Just Save, Invest

  • Avoid unnecessary expenses

This is a no-brainer! When you’re facing financial issues due to getting fired, avoiding all unnecessary expenses should come as a reflex action to you. No matter how much you love that watch or that latest LED, it’s time to back off for a while. We don’t want to stop you from pampering yourself, we just want you to prioritise your expenses well.

  • Check out some loan protection plans

For bad situations like a job loss, insurance companies often provide a couple of plans to make things simpler for you. One of these plans is a loan protection plan. Depending on your policy, they will care of your loans for a certain period during your unemployment. Getting some assistance at such a difficult time can save you from a lot of trouble. You might want to consider getting one of these loan protection plans.

  • Now’s a good time to start building a corpus

According to most financial experts, you must start building your emergency funds for a situation like a job loss. But in case you haven’t done that already, use your full and final settlement money for that purpose. Don’t exhaust the entire amount by spending on unnecessary things that you won’t even use later.

  • Budget your expenses and be strict

If there’s anyone who can help you manage your expenses well, it’s you! No matter how many people keep lecturing you about money, you’ll never be able to save anything unless you motivate yourself. You need to stop being lenient and curb your temptations instead of splurging on luxuries you can’t afford currently.

Additional Reading: How To Balance Your Income And Expenditure

It’s not the best time of your life, but be strong and plan well. You’ll get through!

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Category: Budget & Savings Investments

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