No one likes to hear their job has suddenly become redundant. No one wants to know their source of income was suddenly taken away.
To prepare for the possibility of job loss; I recommend these following tips:
- Ensure your debt accounts are up to date: Should you have any outstanding amounts in arrears, it might be very challenging to service them should you become unemployed.
- Have savings set aside for the possibility of job loss: If possible, aim to have three months of your living expenses saved for such a situation. Save for the essentials, such as your rent or mortgage, food, clothing, utilities. The goal is to make sure you are still able to meet your financial commitments.
- Save for your annual expenses: Set aside a monthly amount towards your annual expenses, such as your car and house insurance, road tax and property tax. I spoke with a financial institution I conduct business with recently and they told me I could prepay my car insurance to my account and notify them of the money accumulated when the payment it is due. This will help you place less strain on your budget and be there just in case your income is taken away.
- Check the status of your NIS account: Should you lose your source of income you are entitled unemployment benefits. Pay a visit to the NIS office and check to ensure your benefit payments are up to date.
For those of you who have just received the challenging news, please also allow me to recommend the following:
- Notify your creditors: Let them know of your current situation. Do not allow time to pass by and have your account with your creditors run into arrears. Have a sit down with your relationship manager and find out what your options are.
- Develop a budget: If you never budgeted before, now maybe the right time to commence. You may not be at liberty to spend as you like, but employing this discipline will help you manage what you have.
- Seek a part-time opportunity: While on the job search, seek an alternative source of income. One that is legal of course! It may not be your ideal position, but it will help you during your transition.
- Apply to receive unemployment benefits: For those of you entitled to NIS benefits, you will be issued a card and will be required to have it stamped at the prescribed time. Once it is stamped before or on the date assigned, you will be entitled to receive your benefit.
Relying on one source of income is not guaranteed in these times so challenge yourself to develop additional sources of income with your natural abilities. If you bake a sweet bread everyone raves about, do it - and sell it. If you are brilliant at editing documents, provide a service to university students.
In short, I am saying that if one income source goes, put yourself in a position such that you could rely on another source.