Laid off? Here’s how you should manage your finances now

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It’s easy to let emotions take a toll on you after a lay off. However, it’s not that difficult to bounce back either. How do you control your finances when you are laid off? What exactly should be your plan of action when you can’t see the regular flow of money (that you have been used to seeing for the past few years) coming in? It doesn’t matter whether you are in your 20s, 30s, 40s or 50s, there is every chance of you getting laid off – sometimes even owing to no fault of yours. Here a few tips to manage finances after layoff.

A few tips to get back on the financial track after a layoff

It is extremely important to develop the right attitude towards your situation- instances of emotional upheaval are quite common after a lay off. The trick is not to let these emotions ruin your pragmatic faculties. And, you can actually deal with a lay off more effectively if you develop a more realistic approach to the entire incident. Right at the onset, you should realize that this temporary joblessness is not the end of the road for you. The moment you are able to adopt a positive attitude, it will become easier for you to put things in the right perspective and embark on a fruitful plan.

Plan ahead

Spend money wisely even when you are working. Though the thoughts of a lay off are possibly the last thing on your mind, they should be on your mind, nonetheless. Experts always suggest that you should explore all the avenues of saving and utilize them properly- better if you are saving up for six months, so that you are not required to worry even if your joblessness lasts for that long.

Seek avenues to save

Your budget needs a revision for sure. Cut off all avenues of unnecessary expenses. Talking of unnecessary expenses, the first thing that comes to mind is entertainment. If you were dining every week when you were working, consider bringing it down to a single week a month. It is however not prudent to cut off entertainment completely from your life. You need to be in touch with people and grow your network (and we all understand how important a role networking plays when it comes to bagging a job). It is important to strike a balance between your need for entertainment and your finances.

Don’t invest in major purchases during this period of time

Yes, it stands true even if your television set is not working or for that matter, if your phablet is getting old. However, what exactly do you do if something like your refrigerator starts creating problems? Don’t turn a blind eye to it because there are chances of your stored food turning stale and causing unnecessary waste. Do get it repaired or invest in a new one if, required.
Seek other avenues of saving as well. Are you driving your way to the medicine shop- thereby traversing a distance in car which can well be covered on foot? Are you leaving behind the condiments meant for you in restaurants? We generally don’t think about saving up likewise. But think about the kind of savings we can end up with if we pay attention to these smaller details.

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