You’ve been laid off. How can you make your finances last?

Losing your job can be a devastating blow, especially if you have bills to pay and a family to support. But you don't have to panic or give up hope. There are some practical steps you can take to stretch your finances and survive the layoff. Here are six tips to help you manage your money and prepare for the future.

1 Assess your situation

The first thing you need to do is to get a clear picture of your income, expenses, and savings. How much money do you have left from your last paycheck, severance pay, or unemployment benefits? How much do you spend on essential and non-essential items each month? How much do you have in your emergency fund, retirement account, or other investments? Knowing these numbers will help you create a realistic budget and prioritize your spending.

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2 Cut your expenses

The next step is to reduce your expenses as much as possible. Start by eliminating or minimizing the non-essential items, such as cable, subscriptions, eating out, or entertainment. Then look for ways to save on the essential items, such as groceries, utilities, transportation, or insurance. You can use coupons, shop around, negotiate rates, or switch to cheaper options. Every dollar you save can make a difference in your cash flow.

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Tomi Tiippana

Tekijämies | Sales Leadership and Development
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"It's not the income, it's the expenses". If one has no debt or . This is a good time to compare (or get rid of) different: -Mobile subscription and internet plans -House loan or rent (moving, though that can be expensive) -Netflix, HBO etc. -Insurances You can also look through you expenses through your mobile bank and assess what you spend the most money on and see if there is something you can do about it. Also assess your grocery bill and see if you can switch to something less expensive. Focus on real, nutritious food and cut back on soda, candy etc. even though in hard times they might be appealing. Avoid fast food since it costs more than food you can make yourself.

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3 Boost your income

While you are looking for a new job, you can also look for other sources of income to supplement your finances. You can sell some of your unwanted items online, offer your skills or services as a freelancer, or take on a part-time or temporary job. You can also check if you are eligible for any government programs, grants, or tax credits that can help you cover your expenses or improve your skills.

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Tomi Tiippana

Tekijämies | Sales Leadership and Development
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It's a good time to explore if you can turn some of your hobbies into a freelancing, commission work. Like photography, guitar lessons, coding etc. It might cost something to set up a entrepreuner licence, but you can do that after you've secured your first gig. Also, go through you wardrobe or vanity/luxury (watches, bags etc) collection and see if you really need everything or if you can sell them.

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4 Pay your debts

If you have any debts, such as credit cards, loans, or mortgages, you should try to pay them off as soon as possible. This will help you avoid interest charges, late fees, or penalties that can increase your debt and damage your credit score. You can use the debt snowball or debt avalanche method to pay off your debts faster and more efficiently. You can also contact your creditors and ask for a lower interest rate, a payment plan, or a hardship program.

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Tomi Tiippana

Tekijämies | Sales Leadership and Development
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It can be tempting to use a credit card to pay for expenses, but the intrest rates in the long run make you pay much more than you initially thought. If you pay 15% interest, your 100 dollar bill will be 115 dollars nexth month, and 132,5 the next as it accumulates. Pay off your credit card debts if you can so you can have a realistic assesment of your financial situation.

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5 Protect your assets

One of the risks of being laid off is losing your assets, such as your home, car, or retirement savings. You should do everything you can to protect them from foreclosure, repossession, or early withdrawal. You can apply for a mortgage forbearance, a loan modification, or a refinance to lower your monthly payments. You can also look for alternatives to driving, such as public transportation, carpooling, or biking. You should also avoid tapping into your retirement account unless it is absolutely necessary, as you will face taxes and penalties.

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6 Plan for the future

The last step is to plan for the future and prepare for the next opportunity. You should update your resume, network with your contacts, and apply for jobs that match your skills and experience. You should also use this time to learn new skills, acquire new certifications, or explore new career paths that can increase your value and marketability. You should also set some financial goals, such as building an emergency fund, saving for retirement, or investing for growth.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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You’ve been laid off. How can you make your finances last?

1

2

3

4

5

6

7

1 Assess your situation

2 Cut your expenses

3 Boost your income

4 Pay your debts

5 Protect your assets

6 Plan for the future

7 Here’s what else to consider

Sales Operations

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You’ve been laid off. How can you make your finances last?

1

2

3

4

5

6

7

1 Assess your situation

2 Cut your expenses

3 Boost your income

4 Pay your debts

5 Protect your assets

6 Plan for the future

7 Here’s what else to consider

Sales Operations

Rate this article

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