- March 12, 2017
- Posted by: Ethica Private Wealth
- Category: Blog
Losing a job is rarely a happy time for anyone. However, by paying attention to some key elements, we can take better control of the situation and work through it without it having a major impact on our personal health and our relationships. No one wants to face their family and friends after they lose their job, and worrying about the future becomes a daily concern until regular employment can be once again sustained.
Take Care of Yourself First
So what should a suddenly unemployed person do? First, anyone who experiences sudden job loss should focus on taking care of their health. *Studies do tell us that when people lose their job, no matter the reason, health risks like depression and anxiety increase and many people struggle with sleeping, feeling anxious, and often abuse substances to help them cope. Although stress is a normal reaction, you should monitor yourself and the situation and if it starts to feel like it’s getting out of hand, then seek some help and support.
One of the main reasons people often feel stressed out in these times is usually because they are not always clear about where they stand financially and in many cases, they have over extended themselves so much that they most likely do not have any savings to help them stay afloat. Many of us have loans and credit card debt. Since life has become so much more expensive and spending on credit has become the norm, saving money for a rainy day or for retirement has taken a back seat.
Even if a person does have some savings, it’s not always enough. The rule is to have at least six months of living expenses saved in case of an emergency, such as an unexpected job loss. However, this is not always the case with some people being lucky if they can make it for two or three months. Although having something is definitely better than having nothing at all, which is the case for many, this is enough to make anyone sleepless and distant from family members and friends.
How to Approach Finances During Unemployment
It is suggested that anyone experiencing these types of hardships, should really limit their spending to absolute basic needs. Take control by immediately making a list of monthly expenses for two months and live accordingly. Cut out extras, but don’t limit yourself so much that you are not getting out and socialising with friends and family. Sell anything you have of value that you can live without or you may not be using.
You can also try and find some part-time work until you can find full-time employment with the salary you need to manage all of your obligations. Contact lenders and the bank and see about getting your payments as low as possible. This is just a short list, but getting proactive and creative could help you come out on top and give you the confidence to continue moving forward during more challenging financial times.
Start preparing for the unexpected and find a financial planner to help you get an early start today.
*Source: Australian Psychological Society