How to Survive Job Loss?

Last updated on 17 Sep, 2018 | 1 comment

survive job loss

Losing a job is one of the most demoralizing stages of life because you need to undergo through emotional distresses. Besides, there comes the financial crisis, which is even the worst part.

But in between the emotional and financial catastrophes, you need to overcome the troubles and learn how to survive job loss.

With the changing economy, the percentage of the unemployment rate has gradually increased. According to a report by CNN, the unemployment rate has dropped to 4.3% in May 2017, which is the lowest since May 2001.

And after the recession concluded in June 2009, unemployment peaked at 10%. As stated by Lynn Reaser, an economist at Point Loma Nazarene University in California, “The economy is still growing, but the job market has lost some momentum.”

So the security of a job is the biggest apprehension in the current date. And this is why it is better to adopt a good plan to survive job loss.

How can you survive a job loss?

The 12 tips suggested for surviving the job loss situation are practical oriented and give you excellent means to tackle the situation.

1. Focus on your budget

As you are without a job now, you need to give a grave look at your budget. Evaluate how much you have and how minimum you can spend.

Using credit/debit cards in shopping malls and petrol pumps won’t give any idea about how much is spent. As you are habituated living according to your income, you need to change this practice now.

Keep a track of your money and expenditure. Rip down the unnecessary expenses like entertainment, junk foods, travel, etc.

2. Spend Less

After analyzing your budget, now it’s time to control spending the money needlessly. Buy only the necessary stuff. Do not go for branded items or eating outside, as they ingest too much of the money. Carry fewer cash when you go out.

This will improve your spending behavior and make you more adaptable to the Job loss situation.

spend less when unemployed

Image: http://www.bbc.com/capital/story/20150102-painless-ways-to-spend-less

3. Avoid using credit/debit card

Although our country is much focused and developed towards a cashless economy, being unemployed, you should run with cash in hand. The reason besides this statement is, using credit/debit card won’t give the indication about how much is spent or the amount left in your account. The tracking gets missed here and usually, you pay high with card payments. Using cash will let you spend only on the necessary stuff.

4. Dodge luxuries

Since you are not certain about when you’ll be employed again, you need to cut down buying luxurious items till then. Be very careful with what you spend because products are very costly nowadays. Branded products and clothing should be strictly avoided.

Image: http://hillsdalecollegian.com/2017/04/talk-money-avoid-luxuries-small-salaries/

5. Do not withdraw from the pension account

When you have zero cash in hand then you might be curious to withdraw cash from your pension account. Hold it. This is the only money you have saved for your family and future. So think twice before withdrawing it which your unemployment period.

6. Avail Government benefits

Look for Government assistance. You might get luckily eligible for Government benefits, such as Unemployed Allowance Scheme or the Prime Minister’s Rozgar Yojana for the Educated Unemployed Youth. Not only this, they can even help you pay your mortgages and provide support for mortgage interest.

7. Avoid paying debt

Do not take the risk of paying debts at this stage. You might be impatient to pay off the amount overdue and close your accounts, but have you thought, how will you manage after that? Remember, you don’t have a job now so avoid compromising with your credits. Talk to the concerned person and explain to them your situation. They will definitely come up with a solution.

8. Minimize loan interests

Thinking about your EMIs? If you have trouble paying your loan, then talk to your lender and explain to them about your condition. Request them to lower the interest rate. They may streamline the entire process or reschedule your EMI payment. In case he is not helping you anyhow, then look for a different lender who offers a better interest rate.

minimize loan interests

Image: https://www.esperantomex.org/2017/finance/minimize-the-interest-liability-while-repaying-home-loans/

9. Maintain health insurance

Try maintaining your health insurance anyway, because this is the most vital thing you’d need even at this stage. Health is one of the top priorities that people should consider maintaining, and therefore, they should have a proper mode of savings for that. There might be emergency cases, so having an appropriate health policy will help you cover them in the short term.

10. Look for additional benefits

Look for other benefits such as contacting a good friend or colleague for advice. They might be aware of the schemes or policies that you are unaware of. It’s a fact that nobody should rely on a single source of income, and when you are unemployed, the other source might help you one way or another.

11. Deal with your emotions

Unemployment is the phase when you go through emotional turmoil. Some of you might have faced depression, which is even worse. So keep yourself involved in certain activities that you like. As said, “The empty mind is a devil’s workshop”, your brain would be occupied by negative opinions if you stay idle. So before dealing with such stages, get involved in some activity you are interested in or that helps you in the future.

12. Counseling

Seek the support of a counselor for you are unable to deal with the situation. They will definitely come up with a solution and help you thrive through this unemployment phase. Counselors know the ‘how to’ methods and provide a resolution to deal with your emotions. Talking to them will help you regain the positivity in your life and struggle through this employment phase. You can learn about the tips and tricks that may help you to save a lot.

Conclusion

If you are not certain about what to do and how to recover from this unwaged phase, then do follow the solutions we have provided. You will definitely regain happiness and get the motivation to continue struggling.

Reference: http://money.cnn.com/2017/06/02/news/economy/may-jobs-report-us-economy/index.html