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Managing Your Money After You’ve Been Made Redundant

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Redundancy is that word everyone is fearful of. Every time you get called into the manager’s office at work, you fear that the dreaded R word will be used. If you’re reading this, then there’s every chance this has sadly happened. Consequently, your life is now in a state of limbo – you have no job and no source of income. From a financial perspective, this is terrible news.

You need to remember that redundancy isn’t permanent, and you can find work fairly quickly if you know what to do. The most important thing right now is learning how to manage your money and keep your finances afloat. I’ve come up with a few suggestions that may help you on your way.

Ensure You Got All The Compensation You Deserve

When you’re made redundant, you’re entitled to certain compensations for your troubles. Companies are legally required to give you your holiday pay, along with a redundancy payment, which should compensate for the money you’re losing out on by being let go. If you’ve received nothing at all, then that’s probably against the law. In this situation, it makes sense to seek legal guidance right away. Plenty of attorneys let you ask a free legal question, and you should ask how much workers compensation you’re entitled to if you’ve been made redundant. They’ll lay down the facts, and you can figure out if you’ve been shortchanged or not. If so, take legal action, and ensure you get every penny you deserve. This money will help you pay your bills and just keep yourself afloat while you look for work.

Temporarily Strangle Your Spending

When you have no regular income, you can’t let too much money escape your bank account. As a consequence, it’s time to put a firm stranglehold on your spending. Cancel certain direct debits that aren’t essential – I’m looking at you, Netflix and Spotify! You’ll be surprised at how much you spend on subscription services every month, even though the individual costs are fairly low. If anything, this could be a wakeup call to your bad spending habits! As well as this, create a budget and stop yourself from spending too much every week. Buy less food, buy non-branded products – which are cheaper than the branded versions – do whatever you can to spend less. This will ensure your financial situation doesn’t spiral out of control.

Try And Generate More Money

Unless your name is Harry Potter, you can’t conjure money out of thin air. But, there are ways you can generate some extra cash. Sell old clothes or things lying around the house, do a bit of freelance work, or even consider selling some investments you have. Do whatever possible to raise a little bit of extra money to help you during this tough time.

Hopefully, you won’t be incomeless for long. If you start searching for a job right away, you may only go a month without regular payments. Regardless, these tips will help you manage your money as best as possible.