How to bounce back after a job loss? Tips for financial recovery

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By: Phil Bradford
on 3rd Oct,2016

Do you know what steps to take and how to manage your finances after losing a job? If not, then here are some tips to help you out.

Are you suffering from a job loss? If yes, then a bit of suffering is normal. But, if you continue to suffer, then it’s bad for your self-confidence. It’ll hurt your relationships thus making it harder to handle. So, you must try to cope with the situation as soon as possible before it’s too late.

Do you know what to do or how to manage your finances if you’ve lost your job? If not, then you must take a look what is written below.

What will you do after a job loss?

Most importantly, stop brooding about your job loss. It won’t help you in any way. Moreover, it’ll make you depressed and gloomy. Instead, wake up and do the things that’ll help you gain your financial stability.

Check this out:

1. File for unemployment benefits

Though filing for unemployment benefits won’t cover all your loss, yet they’ll help you to manage till you get a new job. If you lose a job through no fault of your own and have worked for a certain number of hours, then you’re eligible for unemployment benefits. However, the eligibility criteria for receiving unemployment benefits differ by state.

2. Continue to receive benefits of your health insurance

Do you have health insurance through your employer? If yes, then complete the necessary paperwork and continue to receive the benefits of the health insurance. It doesn’t matter whether or not you have any health issue; keeping a health insurance policy is mandatory. It’ll insure you in the future in case of health emergencies.

You can sign up for COBRA (Consolidated Omnibus Budget Reconciliation Act) for keeping the employer-based insurance coverage for up to 18 months, or you can get your health insurance plan.

3. Evaluate your mistakes

If you have lost your job due to your poor performance, then make sure you don’t repeat those mistakes. Find out ways by which you can boost your performance in your new job. Try to focus on your future job so that you have a better job security.

4. Update your resume

When you are no more associated with a company, or after losing your job, update your resume and put your recent work experience. Mention the tasks you have performed and the tasks you have achieved. Make sure to highlight your past experiences you have gained at your previous jobs. And of course, look out for grammatical errors and typos.

5. Find a new job

After updating your resume, finding a new job should be your priority. Search different job portals and hiring pages of companies that you’re interested in working for.

If you cannot find a full-time job for yourself, consider a part-time job or do freelancing so that you have the cash flow to pay your bills.

6. Reorganize your life

Dealing with unemployment is not easy. Sending out resumes, going out for job-hunting and interviews, and being overlooked for a position that you thought you were fit for can be discouraging when you’re trying hard to deal with the job crisis.

All this is a part of life, and if you get discouraged, things will get more complicated. So, you shouldn’t lose your confidence and believe in yourself that you can do it. Try to reorganize and declutter your life and look for opportunities that’ll secure your future.

You can sell things that you don’t need to add some extra dollars in your pocket.

Don’t get disheartened if you lose your job. Instead, engage yourself into new things like learning new skills to make yourself more eligible to potential employers, do exercises to make yourself healthy, and so on. In short, try to utilize the extra time you’ve got.

How will you manage your finances after losing a job?

Managing finances after a job loss is tough, especially if you’re progressing without a plan. Firstly, you should make a proper plan and then organize your finances according to that. Remember, one wrong financial decision will completely ruin you. So, think and then act.

Here’s a list of how you can manage your finances after losing your job:

1. Revisit your old budget

It is obvious that your necessities and priorities have changed after getting out of work. So, you need to reshuffle your old budget, if any.

Find out your priorities and plan your budget according to it.

If you don’t have a budget, then make it a point to plan a budget right now.

Budgeting is not all that you have to manage your finances successfully. You need to stick to your budget if you want your finances back on track.

2. Cut down unnecessary expenses

Before giving out cash at the grocery store, you must remember that you’re out of a job right now. So, try to cut down unnecessary expenses from your shopping list and buy those things without which you can’t live.

Apart from eliminating unnecessary expenses from your budget, look for ways by which you can save more money like:

  • Cook meals at home
  • Stop or minimize eating out
  • Do comparison shopping
  • Look for inexpensive entertainment
  • Use public transport
  • Use coupons when shopping online
  • Buy generic drugs

3. Save money on utility bills

Your utility bills may eat up all your savings if you can’t reduce them. There are several ways by which you can cut down on your utility bills.

Want to know what they are? Have a look:

  • Merge your internet, cable TV, and cell phone services
  • Unplug electrical appliances when not in use
  • Use energy-efficient light bulbs
  • Use fans instead of air conditioners
  • Switch off lights and fans when not in use
  • Ditch dishwashers and dryers
  • Cook with lids on
  • Wash clothes in normal water
  • Find out and fix the leaks
  • Replace electric water heater with a solar water heater
  • Insulate the water pipes
  • Use water-saving shower heads

4. Use cash instead of credit cards

If you already have debts and continue using your credit cards, your finances will become miserable and unmanageable. Since now you don’t have an income, go on a cash diet instead of using credit cards. You’ll be able to control your expenses if you pay the bills with cash. So, next time while making any payment, make sure you follow this strategy.

It is proven that when we use cash for purchasing things we tend to spend less. It’s possible because we can keep track of how much money is going out of our pocket.

5. Get a roommate

If you are living alone far from your parents, consider getting a roommate. Doing so, you can cut down our living costs.

Share your apartment or room with someone to save money on the rent you pay every month.

However, you can always get back to your parents to save the money that you’re paying on rent.

6. Visit a financial counselor

Job loss means financial hardship, and dealing with it is quite tough. If you’re finding hard to manage your finances in this crisis, visit a financial counselor today. He or she will suggest you the best ways to take care of your finances.

Financial counseling will help you handle your finances better like how to pay off your debts, save more money, manage your budget with limited money, and so on.

A piece of advice

Whatever may be the situation, never lose hope, have confidence and believe in yourself that you can do it.

Remember, “Every dark cloud has a silver lining.”

Do you have any advice for people who have lost their job? If yes, then share your advice in the comment section.

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