There’s a huge skills shortage out there right now but some firms have yet to get the memo.
A large number of companies are scaling back to save costs or to ‘drive efficiencies’. All while expecting remaining staff to be grateful they still have a job and work longer and harder to make up the difference.
If you’re one of the unfortunate many who have lost your job, how can you survive financially until you get another?
Your options are usually limited but there are things you can do.
Check your budget
You do have a household budget don’t you? If not, make one. Then you’ll need to reassess everything to balance the books.
If you want to create a temporary budget to see you through being unemployed, do so. Just make sure you budget taking into account the lost income and so what you can to make savings wherever you can.
You may find it useful to divide your outgoings into essentials and nice-to-haves.
You’ll need to maintain those essentials to keep your life going but cut back on as many non-essentials as you need to stay out of debt.
Check your rainy day fund
I recommend everyone creates a rainy day fund for emergencies. You never know when you’re doing to need it.
Now is a good time to see how much you have stashed away and how long it could last.
The ideal rainy day fund is 3-6 months of outgoings, but not many people can afford to stash that much away right now.
Calculate how long you’ll be able to pay your essential outgoings using any income and your savings.
This is the point at which you can survive without taking more drastic action.
Register as unemployed
Even if you won’t qualify for any cash benefits, registering as unemployed will help you maintain National Insurance contributions. This will come in handy for your pension later in life.
Registering as unemployed doesn’t have the stigma it used to and is there to help you should you need it.
If you qualify for any benefits, take them. You pay into the system when you work. Let the system pay you back when you need it.
Polish your CV and start applying for jobs
While not really linked to your finances, it’s important to polish your CV and start applying for jobs as quickly as possible.
Hiring seems to take much longer than it used to, with multiple interview rounds being the norm.
The faster you start, the less time you’ll be without an income. Some people will find it easier to get a new role than others, but there is something out there for everyone.
Talk to your lenders
If you’re going to struggle balancing the books, you should also notify your lenders.
They can help you get through and its better to do it early than after you miss a payment.
You may qualify for a payment holiday or other debt relief because of your circumstances. This could make a huge difference and you won’t know until you ask.
Now is the perfect time to ask!
Sell your old stuff
Now might be a good time for a spring clean and to sell any old stuff you may have that you no longer need.
Whether you use eBay or Vinted or sell at a car boot sale, you’re having a clear out while making a little money in the process.
Use that money to balance the books until you find a new job.
Get a side hustle
There are lots of opportunities to make a little extra money while you’re searching for a new job.
Getting a side hustle can keep some money coming in and give you an extra earning opportunity you may be able to continue after you begin a new job (contract permitting of course).
You may not earn much, but if it helps pay for food or heating, it has to be worth it.
Surviving job loss
It’s no fun losing your job. It can have a psychological impact as well as a financial one.
It’s important to not lose hope or motivation to change your situation. It’s also important to be pragmatic and take practical steps to help survive tough times.
It won’t be easy, it never is, but it can be endured and you can come out the other side.
Good luck with it!
