[A] job loss can happen at any time, even in a flourishing economy. In a less than stellar time, it can even be expected. The challenge of staying afloat while you search for a new job can be difficult. Make the wrong decisions and you may be unable to pay your bills and ruin your credit before you have a new income.
Cut All Nonessential Expenses
As soon as you receive notice at your job or if you suspect it’s coming, start cutting all nonessential expenses. This includes cable TV, eating out, even internet. For some, a cell phone is a necessity, but the landline isn’t needed. When you cut these expenses immediately, you keep more of your savings for the essential expenses so it can last longer until you can replace your income.
Build a New Budget
Once you know what expenses you still have to pay, you can create a new budget. This helps you figure out how much money you will need to pull from savings and how long that money will last. If your spouse still has a job, you will only need to supplement the income with money from savings. Or, if you’re lucky, cutting out the nonessential expenses may mean the other income covers everything temporarily.
Look at Temporary Work
Finding a new job may not be easy, but you may be able to earn money until you get hired. Look for other ways to bring in money, such as a part-time or temporary job. Offer to babysit or mow lawns. Look at skills you have that could provide a source of income. You might be surprised to discover you can earn enough money to keep going and even turn it into your own business. Many successful entrepreneurs found out they could earn money from a skill through desperation.
Losing your job can be devastating, but it doesn’t have to devastate your finances or your credit if you take the right steps. With a little foresight and diligence, you can weather this storm and even come out ahead.
If you are just starting out on your own, you may have a hard time getting credit cards or loans because of a lack of credit history. You must build credit to get access to the best credit cards and loans, but you can mess things up if you don’t know how to do it […]
One of the worst feelings you can have is when you have a bill coming due and no way to pay it. You have either spent all of the money or you have to spend it on something more important. You don’t want to have to deal with those phone calls from creditors because you […]
[Y]ou open up the credit card statement only to see another $30 late payment fee assessed. Ugh! You can’t believe you forgot to make a payment on time again. In between running the kids to daycare or school, meeting with clients and taking care of errands on the weekends, some things just get pushed aside. […]
[G]etting approved for a credit card is a sign of responsibility. It can give you freedom with your finances. For instance, you can book a hotel or buy airline tickets, which would be difficult without a card. You should know why you want a credit card and understand if those reasons are good or bad. […]
You hear financial experts preach about getting out of debt. They tell you to cut up your credit cards and pay for everything with cash. While some people may need to follow this advice, you may wonder if it’s the case for everyone. Should you avoid ever having any kind of debt again? Not Avoidable […]
[T]he busy summer season is behind everyone, and the upcoming holiday season is a few weeks away yet. Now is the time to focus on goals you have set. One of the most important is saving money. Fall = Transition Time You are transitioning from the lazy days of summer, times when you spent a […]
[W]hen you hear about identity theft, you may think about all of the public computers in use as well as the credit card machines in stores. While these are all areas that are vulnerable to hackers and those who want to steal your identity, one of the most dangerous areas is at home. Why? Because […]