How To Recover Financially After Losing a Job

posted on Saturday, March 19, 2022 in Financial Tips

Whether you’re a beginner in the workforce or an employee with decades of experience under your belt, losing your job can take a toll on your finances. Once you lose your source of income, you’ll be forced to tap into whatever savings you have to keep yourself financially afloat. But that doesn’t mean you won’t be able to get yourself back on your feet.

There are a few ways you can do to keep yourself financially stable until you get a new job. Here are some tips you can follow on how to recover financially.

Assess Your Current Finances

The first thing that you need to do is to check on your current financial situation. Evaluate how much money you still have. See if you have any other sources of funds such as your severance package, emergency savings, and a few others. Don’t forget to double-check if you have any other liquid assets that you may have to sell to keep yourself afloat.

Next, you’ll have to look into the debts you may have incurred recently and other payments you still have to accomplish. Lastly, you should take in other variable expenses. These can be your expenses on food, household supplies, gasoline if you own a vehicle, and more.

Make a New Budget and Action Plan

Once you have a clearer picture of your current finances, it’s time to make a new budget and action plan. Since you have lost your source of income, you’ll have to play around with what you have left. Prioritize on paying debts and expenses that have the most impact on your daily life. Any other unnecessary expenses can be lessened or delayed for the time being.

You may have to do some necessary lifestyle changes so that you won’t go over your budget. You can download some budgeting apps on your phone so that you can keep track of your spending. Apps such as You Need a Budget (YNAB) and Mint can notify you if you’re already going overboard.

Sign Up for Unemployment Benefits

Unemployment benefits or unemployment insurance is a joint state-federal program that can help people who had lost their jobs. Eligible workers can receive cash benefits for the time being. Each state has its unemployment insurance program so be sure to check on your state whether you’re eligible or not, and how much will you be getting.

Talk to Your Financial Adviser and Institution

Once you get a new job, it’s time to rebuild your finances. Have a conversation with a financial adviser on what to do next. You can also open up a new emergency savings account from your chosen credit union or financial institution so that you still have enough money.

With the right planning, you can keep yourself financially afloat. If you need help in handling your finances, contact Community 1st Credit Union and talk to one of our C1st representatives.