Posted on: 13th Jul, 2006 11:01 am
Loss of job can happen to anyone at any point of time. I know people, including myself who are employed steadily and can't think of losing job as we find ourselves efficient with our job. But unnatural things can occur. The company policy may change based on the company's financial or strategic circumstances. At that time we just find ourselves in the mid-sea losing our job for reasons we couldn't expect.
So, it's better if we can keep ourselves prepared to face these kinds of situations today itself and not wait till we lose our job accidentally. Setting up an emergency fund can always help in those intermediate days between losing a job and getting a new one. If we can start saving a small amount every month, that can be useful at that time.
But what if somebody has lost his/her job and there is not enough savings to serve him/her in that period? Still with some planning we can recover and continue to lead our normal life.
So, it's better if we can keep ourselves prepared to face these kinds of situations today itself and not wait till we lose our job accidentally. Setting up an emergency fund can always help in those intermediate days between losing a job and getting a new one. If we can start saving a small amount every month, that can be useful at that time.
But what if somebody has lost his/her job and there is not enough savings to serve him/her in that period? Still with some planning we can recover and continue to lead our normal life.
- Analyze the Expenses:
Make a list of the expenses that you have to make in a month. List out the essential expenses like your bills, mortgage payments, expenses towards daily needs separately and list the other non-essential things in a different place. See if you can cut down the non-essential expenses for the time being and utilize that money towards the necessary things.
- Take Loan from Own Savings:
Although not too encouraging to me, loans can be taken from your 401(k) account to meet some essential items in this emergency period but should be returned soon as you get a job.
- Unemployment Benefits:
Utilize the money taken from out of your paychecks over the years for unemployment insurance. This is the perfect time to apply for that money and utilize it towards your needs. Check with the state employment office for information on how and where to file for that money.
Good points, Samantha. We can explore our options in the mortgage market and can cut down our mortgage payments by refinancing at a possible lower rate. That can be helpful particularly during this period.
Yes, that's a difficult period. I remember mine but I recovered somehow and got a good job within a few a months. A loan from your home equity can also be considered but make sure that you can pay back and don't risk your home unnecessarily.
This is a crucial period. You must monitor your progress and compare that with the budget that you made constantly. Then only you can explore your options in a better way and can decide on any required change in the plan.
You should not be rigid to the financial plan if you fail to meet the expenses even after following. This indicates that your plan needs some updating and you must adjust it as per you financial circumstance.
You should not be rigid to the financial plan if you fail to meet the expenses even after following. This indicates that your plan needs some updating and you must adjust it as per you financial circumstance.