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There may come a time during your career when you are made redundant, in the United States the term used is Laid off. It is not usually a pleasant experience but it can prove to be a springboard to new opportunities. Having been through the experience myself, my advice is to take the steps that I have outlined in the post below. The Retail industry is an example of an industry that seems more susceptible to redundancies than others but the truth is that it can happen across the board an in many sectors. Once you have taken time to understand the practical implications of being made redundant, you should then create a financial action plan that will keep you focused on your financial goals.
If You Are Made Redundant
If you have an emergency fund, assess how much is in it and how long you will be able to cover living expenses after you receive your final salary cheque. Be as detailed as possible because this will determine the maximum time you have available to find another job.
Revisit your monthly budget, are there any areas that can be reduced? Rather than wait until you are in a desperate position, cut back on entertainment and other discretionary expenditure now. You will be able to reintroduce them when your employment status improves. Consider your approach to food and increase the number of home cooked meals you make instead of visiting restaurants or buying takeaways. It will surprise you have much can be trimmed off your expenditure in this way.
Looking For Employment
Search for new roles as soon as you are informed that you will be made redundant. Search for career relevant jobs and side gig / second jobs at the same time. You will find that these side gigs/ second jobs often have a more urgent need and a faster turnaround time. The main benefit of this is that you will be able to get money coming into your account sooner than if you rely solely on career relevant jobs that may have a lead time of 2 -3 months. Keep a spreadsheet of jobs that you have applied to.
Assess your vehicular needs, do you need a car? If you have two, could you manage with one? I recommend that you consider these questions dispassionately; don’t be concerned about what the neighbours will think. In the major cities of the UK and other cities around the world, it is possible to hire cars on hourly basis. You could hire a car for a few hours and then return it.
There are quite a few car sharing companies in London, for example, Enterprise Car Club, Easy Car and Zipcar. Ensure that you read the terms and conditions before signing up. Renting cars rather than having your own to maintain and run could save you a significant amount and buy you more time whilst looking for another job.
De- Clutter and Sell Unwanted Items
If your emergency fund is going to run out soon or if you don’t have an emergency fund start to de-clutter your home. Selling unwanted or unused items via websites such as Gumtree or Ebay will help you raise additional funds that can go into your emergency fund. This will buy you more time whilst you are searching for a new job.
Have you ever been made redundant? Did you get your financial house in order? Let me know in the comments section below.
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My aim with each blog post is to help you move to a better financial future. I believe that there is not enough financial education in the national curriculum and I intend to share anything helpful that I have learned along the way. I am by no means a financial expert. None of the information on this website constitutes financial advice and is provided as general information only. This is my personal finance blog; my marketing blog is over here and I have been blogging there since 2010. I hope you have found this information useful. Thank you for reading.