This archive report was first published on 12 June 2021.
Job Loss: A Financial Expert's Advice ¶
Published on June 12, 2021, by Nyakundi Report
Job loss can be a stressful and overwhelming experience, but it's essential to take immediate action to mitigate its financial impact. Rina Hicks, a corporate finance analyst and director at Faida Investment Bank, shares her expertise on the steps to take after losing a job.
According to Hicks, the first step is to cut off non-essential expenses. This includes reducing entertainment, dining out, and subscription services. 'Data is a non-essential unless you are generating an income from it,' she advises.
She also recommends changing shopping habits, reducing trips to the supermarket, and minimizing the use of heaters and air conditioning. 'Consider moving house to a cheaper one if you are paying rent. Alternatively, negotiate with your landlord and request for a reduction in rent to an amount that you can afford,' Hicks advises.
Debt can be a significant concern after job loss. Hicks advises against taking on more debt and recommends renegotiating terms with lenders if you're already in debt. 'If you are in debt, speak to your lenders and seek a suspension of interest and principle repayments,' she says.
Managing mental health is also crucial during this period. Hicks recommends talking to a friend or loved one, seeking professional help from a counselor or therapist, and exercising regularly. 'Exercise as much as you can, even in your house, and eat healthy to boost your immunity,' she advises.
Rina Hicks is the author of the book 'Money-Wise: Create, Grow & Preserve Wealth' (2016) and holds an MBA degree from Strathmore Business School.
