This archive report was first published on 5 August 2020.
Financial Tips for Job Loss and Pay Cuts ¶
As the coronavirus pandemic continues to wreak havoc, millions of people have lost their jobs or seen their pay cut. The future remains bleak, with experts predicting millions more job losses in the coming weeks and months.
However, life must go on, and it's essential to take control of your finances. Here are some financial tips to help you manage your money if you've been laid off or on a pay cut.
Review Your Budget
When reviewing your budget, consider the amount of money coming in and what's going out. Break down the basics, review your subscriptions and memberships, and find out what you can cut off temporarily. Steer clear of non-essential spending and be ruthless with your budget for a couple of months or until you figure something out.
Seek Relief from Lenders
Take stock of how much money you have and how much you owe your lenders. Approach them early enough before any problem arises, and be proactive in seeking relief. This may involve negotiating with your bank or Sacco to temporarily suspend or reduce payments.
Review Your Healthcare Covers
If you were getting your health insurance through your employer, you may worry about your healthcare costs after being laid off. Review your paperwork to see if there are any covers you can consider. Some health insurance plans allow you to stay on for up to 18 months.
Communicate with Your Children
It's essential to let your kids know that you've lost your job and that it won't be easy going forward. Be honest with them, and explain the situation in a way they can understand. This will help them feel more secure and less stressed.
Consider Your Next Steps
Landing a new job can be challenging during the pandemic. Consider getting creative about how you make money, such as taking on part-time work or consulting. This will help you stay afloat while you continue your search for a full-time job.
Insourcing Everything
Cut off all unnecessary expenses, including cleaning services, lawn care, and DIY maintenance. This will help you save money and reduce your debt. While it may take longer to secure another job, enduring severe measures while unemployed will ensure that when you eventually get a job, you won't spend months struggling to get yourself out of debt.
