If you have received the difficult news that you have been laid off, know that you are not alone. Unfortunately, many workers have found themselves in similar situations in recent months. Whatever emotions you’re feeling are understandable, and taking time to process the news is okay.
After taking some time for yourself, get your financial affairs in order. Sudden loss of income can impact your portfolio. If you’re worried about how you’ll pay your bills, you’re in the right place. You can make strategic moves to spend your money further. Here are some tricks to increase your budget after getting fired.
Evaluate your cash flow
You’ll want to have a clear picture of your current cash flow. Check your savings accounts to see how much money you have stashed away. If you have a sizable emergency fund, it will come in handy. You should also explore any other benefits you may be eligible for post-termination.
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Apply for unemployment as soon as possible, as there may be some delay before you receive your benefit payments. Also, don’t ignore benefits offered by your previous employer, such as severance pay. These resources can increase your total cash flow.
Review your expenses and make spending cuts
It will be difficult to make informed decisions about your money if you don’t know where your finances stand. We recommend that you review your current expenses. You can review your bank statements and credit card statements to better understand your recent spending habits.
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While you can’t eliminate or reduce necessary expenses like your mortgage or car loan, you can make cuts elsewhere and change your spending habits. If you’ve been dining out or paying for extra streaming apps, those costs may be reduced to help you spend your money further.
Don’t be afraid to use technology to your advantage. If you’re new to budgeting, consider using a budgeting app. Tools like this can help you track your progress and stay motivated.
Negotiate your invoices
Some bills can be negotiated, such as your home Internet connection, cell phone or cable TV. It’s worth calling your suppliers and seeing if they can give you a discount. Be honest about your situation as they may be more willing to accommodate your request. You can also get quotes for expenses like home and car insurance to see if switching insurers could save you money.
Get a side hustle or part-time job to increase your income
Many people affected by the layoffs hope to get full-time work in a similar role. This is a good strategy, especially if you have previous experience in your industry. But it can take time to get another job, especially if there is a lot of competition.
One way to increase your bank account balance is to get a part-time job or side business. Working a few hours a week could help you feel more comfortable about your finances.
You can dedicate a portion of your time each week to working to increase your income and spend some time applying for a full-time job. The work you have now doesn’t have to be a forever fix, so don’t be afraid to explore part-time opportunities or side hustles that will hold you back.
Don’t give up hope
Losing your job can be a difficult situation. You will likely experience complex emotions as you process the news of a recent layoff. But don’t give up hope. Your current situation is not forever. You can make moves that make you feel more financially secure as you look for another job. For more money tips, check out our free personal finance resources.
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