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How to cope with financial crisis after sudden job loss?

Redundancy, incompetency, disciplinary actions by the employer, anything can make you confront sudden job loss. The consequences are obviously pathetic, especially on the financial front. When you get back to home, the depressing thought of countless expenses and obligations hovers over your head.

Next job may not be available suddenly. But, the money matters are stubborn and they do not compromise in the time of their occurrence. If on 1st of every month you have to pay rent, it has to be done, no escape from that. Similarly, electricity bills, credit card payments, grocery, and many more are there in the long list.

You may differentiate things in priority bills and non-priority bills to deal with the important expenditure first. However, a situation comes when scarcity starts showing its domination and due solutions need to come in action.

Here are some ways that can help you tackle with the unexpected job loss.

Bake financial relief with your nest egg

Savings always act as the saviour. They are the backbone of personal finances during tough times and nothing can beat them in importance. Even the smartest investment plans and products are secondary in importance in front of the saved money you have in your hand.

Smartly distribute the available funds in varied payments you are supposed to make. Ensure a wise treatment of the treasure in access, as every single penny is priceless. Act rational and reasonable, forget not to avoid useless expenses.

Take return of your investments

The arrangements of yesterday polish your today and tomorrow. If you have invested money then it is the right moment to make its best use to get rid of the mess. For example, your money that is double in figures due to a compound interest investment product, it can be useful now.

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Whatever investments are there, make them act to bring you out from the tough times. Try not to empty your account, when the normal days come back, it can be regretful to find yourself without back-up.

Bring additional skills to life and earn through part-time or freelancing

After unemployment, you do not get bankrupt in one day. Some money is usually there, by the time it gets over; why not search for an earning option. Besides the professional skills, one has some personal skills too. An anthropologist can be a good painter too; an accountant can be a laudable guitarist too.

What is your speciality, are you a good writer or an expert of making sudden connections with children. Content writing and babysitting are the options. Whatever is your quality, just bring it out to earn some precious pennies. Online jobs and projects too are available in abundance. They can help attain income while sitting at home.  

Shift to ‘friends’ or family members’ place to avoid basic expenses

By the time, you are struggling with the job search it can be difficult to manage the basic living costs. If there is any family person or friend who is ready to provide you a shelter for some time, it can save many costs.

Monthly (excluding weekly grocery) expenses can be avoided through this way are –

  • Rent – £1700 – 1800 (minimum)
  • Building maintenance charge £60 – 70
  • Electricity  bill  – £58 to 70
  • Gas bill £56 to 65
  • Television connection –  £18 – 30
  • Grocery (weekly) – £60 – 75
  • Conveyance – £ 130 – 150 (not completely but the person may drop you at the interview location every now and then)

Total saved money –Around £2260. Not a bad deal!!

Borrow funds from a lender

It is almost impossible to get funds from mainstream lenders but yes-online loan companies may help with their different approach. If the applicant is able to prove repayment capacity in any possible way, funds can be attained with fewer efforts. You can find choices of the loans for unemployed offered by direct lender in the UK on lower rates.

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Search online and find out the loan company that can help you grab back the control on financial situation. The available money can be used for all the purposes. In case, you have offer letter of the new job, it is beneficial to qualify for the bigger amount.

The conclusion

Above suggestions are applicable irrespective of the type and situation of unemployment. Apply either all or some of the ways and stay on your toes on every financial decision.

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