In the unfortunate time of job loss or reduced hours at work, it can be challenging to figure out your finances.
Regardless of the situation, there are a few steps to take into consideration for financial planning after a job loss.
Look at additional household income
Sometimes, your main income is not the only income in the house. Look at the additional funds coming in, such as a spouse’s income, investments, savings, and supplemental income that you might qualify for.
Add up your expenses
Budgeting is very important. Take a deep look at your monthly expenses and take into consideration what can be changed. Can you cut on meals out, daily coffee and muffin, extra clothing, and many more?
Making sure you cut back costs during this time is essential to keep you on top of your finances. Do not worry! Once your income is back to being stable, you will also be able to afford more.
Read Related Post: The Importance Of Creating A Budget
Time to break the savings account
In the incident of job loss, the money will stop coming in regularly. If you have been putting money aside every paycheque or invested in an emergency fund, guess what? It is now the time you are going to use these savings. Your savings account was created to be used on your rainy days, now it is your rainy day. Until you get back on your feet and have a stable income, your savings will be able to keep your bills up to date.
Ask for help
If you are at the point where you think where you cannot continue paying your bills or afford to even put food on the table, consider speaking with a financial advisor. A financial advisor with professional experience can help you by giving you professional advice as well as recommend programs that you might be eligible for to help with your finances.