Anyone finds it hard to accept the news of a layoff at their workplace. But how do you prepare financially for a release? Along with becoming familiar with your workplace rights, you should think about getting your finances in order as soon as you can.
Financial preparations should start with a thorough check-in of your current state. While you roughly sketch out what you will need for the time you look for a new job, budgeting is essential. Freelancing and part-time jobs can help you in this regard. And grow your connections to recover from the layoff quickly. Let’s see how you can get your finances together for a potential layoff.
Check in with current finances, savings, and debt: The most important things are your current state of finance, debt, and savings. The first thing you should do is consult with each of these. If something seems concerning, the time to fix it is now.
If your savings are well, keep them as they are – you will need them. But, when it comes to debt, you may want to pay it off as much as possible before the layoff. Ultimately, it is going to save you a lot of headaches when you are looking for employment.
For many jobs, you can reap benefits like health insurance, pension funds, etc. To boost your current financial state, capitalize on the employee benefits as much as possible before the layoff.
Make a minimal budget: While you prep, take your time to think of how much money you need to spend on your essentials. Nothing more, nothing less. The minimal budget will include rent, food, transport costs, and any regular payments that you may have.
While we want to live comfortably, we must prepare for tough times ahead of their arrival. So, cut down your monthly expenditure ahead of time for your absolute survival needs. Spend reasonably, and plan ahead for monthly payments as well.
Consider a side hustle/part-time to fund your savings: A part-time job, freelancing, or side hustle will not be in vain when preparing for a layoff. If there are any opportunities that you skipped on for lack of time or comfort, you may want to revisit them. Side-by-side, look for side hustles in your area or within close reach to help you find yourself.
You may want to get your emergency fund as high as possible at this time. You may want to get your emergency fund as high as possible at this time. While you save your regular income, consider using your side hustle to save for the layoff.
Don’t stop networking: Networking advice may seem dated, but it will be more useful than ever. In the face of a layoff, make as many connections as possible. The release is opening doors for other employers to recruit a trained and skilled workforce.
Invest some time in attending office parties, local career events, or contacting old friends and colleagues for resources. It may seem forward, but people can be more than helpful to those in need.
Have you ever found yourself in a similar situation and found your way out of it? Feel free to drop any advice if you can relate. Join us in the movement to help adults navigate life easier – and maybe you will also find yourself helped somehow.