Financial Advice That Can Help When You Lose Your Job
Posted at by ifydcat on category Personal FinanceLosing a long held and well paying job poses a tremendous amount of stress and unique challenges that are difficult to overcome. It is even worse when the prospects for new employment are minimal, and the savings account is quickly dwindling. This means it is important to take action immediately, as soon as you know your job is on the line. Making some critical changes can really make the difference during a financially difficult time.
If you know your job is on the line, take some proactive steps to contact your lenders. Ask for repayment options that can help get you through this time of financial hardship. Some might offer deferment of payments, periods of forbearance or even loan forgiveness in unique circumstances. Waiting to contact your creditors puts you at greater risk of having your loans fall into the hands of collection agencies. This can ruin your credit and end up costing you more than you originally owed.
While you are making contact with your lenders, it is also a good idea to cut down your daily expenses. Consider getting rid of things that you can do without. Cut your Internet services and visit the local library when you need to browse the web. Cut your cable bill and rent a movie from time to time instead. Cut out your eating out budget and make an effort to prepare all of your meals at home. While you cannot cut out every luxury in life, making a few changes can help you to reduce your monthly bills and save some money to put toward greater priorities.
Another big expense that some people can do without is an automobile. If you have two, consider if it would be possible to live with only one for awhile instead. If you have an expensive car, consider selling it and purchasing a more economical model. Even if you are not going to sell or trade in your car, try walking, riding your bike or taking the bus whenever possible. Even a few small changes can reduce wear and tear on your car and keep your gasoline costs to a minimum.
Finally, consider your grocery budget when you are out of work. Try to purchase food in bulk, consider starting your own vegetable garden and join a coop or frequent a farmers market. You may find that when you cook fresh foods instead of prepackaged varieties, your grocery bill goes down and, as a bonus, you eat healthier. Even purchasing just a few of your staple food items in bulk can save you a significant amount over a short period of time, and it helps to ensure that you have food on hand when things get really tight.
Trying to make ends meet while you are unemployed is tough and stressful. If you make a few adjustments to how you spend and save, you can make this period of time easier on your family and keep your financial situation intact. This is the best option to work through the hardship until you find your new place of employment.