As unemployment rates rise across the world, and the likelihood of widespread redundancies increases, we suggest that you take steps to protect your financial well-being.
For those who are feeling unsettled by the recent spate of ‘lay-offs’ and are genuinely concerned about their job security the first course of action should be to put a away some wages away just in case.
With all that is happening in the economic landscape, no-one wants to be involuntarily out of work and/or be faced with prospect of looking for work in a very tight employment market,
In life, there will always be certain things that are beyond our control.
Take back some control
Most of us would have heard of the saying “save for a rainy day”. This is probably as relevant now as it has ever been.
What to do if you lose your job
If you lose your job you will need to think about the impact it will have on your finances. There are a number of issues you may need to consider.
Your entitlements
Before you make any decisions about your future, find out about your entitlements and the best way for you to deal with any money you may receive. You may be unable to reverse a decision you are unhappy about.
Your redundancy
If you receive a redundancy payout, you might want to seek professional financial advice. Make sure you understand the advice you receive and ask questions if you don't.
Your commitments
Depending on your age and your employment options, different financial issues will be a priority. Whatever your circumstances, you will probably need to review:
- your budget
- your credit cards, loans and mortgage
- your superannuation.
Take control of your finances and contact your lender as soon as you can if you want to make any changes to your loan repayments.
Talk to your superannuation fund about any benefit entitlements that apply on retrenchment. If your superannuation includes life or disability insurance, check whether it will continue when your employer stops contributing. Some funds may allow you to continue your cover but there may be only a small window of opportunity for you to make these arrangements.
Taking time out from the workforce?
If you don’t have another job lined up, plan on having an extended break or just want to change your lifestyle, you will probably need to make some changes to your finances.
A budget can help you work out what expenses you'll need to cover while you're not working. We can assist you with this if you are unsure how to proceed.
You may find it helpful to get some independent information or advice to help you plan.
Government assistance
If you lose your job, you may be eligible for government assistance and services to help you find another job.
The bottom line
Review your budget and stay in control of your money.
If you think you may have problems keeping up loan repayments, contact the lender as soon as possible.
Don't ignore your debts - they won't go away.
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