by Brian McKay
None of us want to be out of work for any length of time, but it is something that can happen to any of us for a variety of reasons, including layoffs, injuries, and downturns in the market. That’s why it’s so important that we all know how to weather the storm of unemployment. If we aren’t prepared for it, we could end up sinking into a financial pit it’s very hard to get out of!
If you don’t want to be sunk by unemployment, check out these simple steps to keep your head above water, financially speaking, at least:
Start an Emergency Fund
If you don’t already have one, start saving into an emergency fund until you have at least six months’ salary in the bank. This will give you a cushion so that should you end up unemployed, you’ll have plenty of time to look for another position before you need to start worrying about how you’re going to pay your bills.
Create a Budget
If you’re out of work, then you’re probably going to have to make a few sacrifices like cutting out those daily lattes from the local coffee house or cutting the cable for a while. Drawing up a budget that takes into account your current income is the easiest way to identify the best use of your money, so do that as soon as you become unemployed.
Seek a Temporary Gig
It might not be easy to get a similar position to the one you were working in right away, but you can probably find a temporary gig working in a local store or freelancing nine, for example, that will help to bring in a bit extra until you do land that new position you’re looking for. So many people hold out thinking that certain jobs are beneath them when in reality, they are just making things worse for themselves. There is nothing wrong with doing a job that’s below your level of expertise if it means you can make the mortgage payments and avoid getting into debt.
(Maybe) Seek a Lawyer
A good employment lawyer can help protect you after a construction injury, a slip trip or fall at work or any other form of accident that has left you unable to work for a period of time. So, if you are no longer able to work due to an injury, it might be worth checking if you’re entitled to compensation.
If the situation is getting pretty desperate, then you may have to contemplate selling any serious assets that you are currently holding, such as your car or your home. Of course, before you do this, you should weigh up the pros and cons of selling up vs. getting into debt or struggling a bit more. For example, if you give out in the sticks, having a car is probably vital to getting a new job and if you can’t make enough money on the sale of your house to get another more affordable place, then it probably isn’t worth it, but if the sacrifice will keep your head above water, then you may just have to bite the bullet.