Thursday, August 6, 2015

How to Stay Afloat Financially After Losing Your Job

The recent economic downturn has affected many businesses and cost employees across the nation their jobs. While the government states that the official unemployment rate is only about 5%, many people have been forced to work lower paying jobs or accept part-time positions. If you have been laid off, then you need a plan of action in order to survive. Here are several practical tips to keep you from losing your house or facing other serious financial problems during these tough times.

Have a Discussion With Your Family

Your family needs to understand the importance of saving money to get you through these challenging times. On my money saving blog, I mentioned that one of my friend’s parents had to break this news to them when they were 8. It was a difficult transition for them, but they were able to come to terms with the challenges and become stronger in spite of them.
You may not want to have to deny your children the new Xbox or designer clothes they are asking for, but they will be able to come to terms with the setback. If you let them know that the problem is temporary, then children won’t be afraid and can help come up with creative ways to save money and learn how to be part of the solution.

Buying and Spending Patterns

As difficult as it may be, you are going to have to change your spending patterns. And while you may not want to become one of those “Extreme Couponing” shoppers, combining coupons and taking advantage of sales are great ways to save money. Just be willing to switch to generic or less expensive products, and cook from scratch and find cost effective ways to prepare meals, which can be costly.

Get an “In-Between” Job

You may not be able to find your ideal job right away. Fortunately, you can hold yourself over by taking a decent paying short-time job. You may not bring home the usual amount of pay, a temporary job can open doors and job opportunities for you. It will also do wonders to help reduce the stress that you are dealing with, especially if you are worried that your UI checks are about to end.
You will stay engaged as a worker and involved with others and a future employer will look more favorable on you for keeping your resume current.

Think Logically

Resist the temptation to become self-employed unless you have a solid business plan in place. While starting your own business might seem like a great idea when you are unemployed, working for yourself offers a unique set of challenges. A new business needs time and money and can take months to reap financial rewards, and realistically, you need to focus your time, energy and finances on finding another job.

Don’t Let Pride Take Over

Consider taking an entry-level job though you may feel like you are taking a step backwards by looking for jobs teenagers typically take, such as retail, fast food or customer service work. However, an entry-level position can provide several advantages for you; employers notice your life skills and solid work ethic, which will give you great opportunities for advancement, as well as giving you the option that you can work evenings, which leaves your days free to continue your job search.

Get Creative

Look for other creative ways to earn money. Your unique skill set enables you to transition your strengths into a different career that employs your experience, such as if you can teach others or work as a consultant, or if you have a hobby you enjoy, you might be able to earn money by teaching or selling your products.