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If you’ve recently lost your job due to layoffs, it’s understandable if you feel anxious about your finances. Find out what to do to stretch your budget. [[{“value”:”
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If you’ve received the difficult news that you’ve been laid off, please know you’re not alone. Unfortunately, many workers have been dealt similar hands in recent months. Whatever emotions you’re experiencing are understandable, and taking time to process the news is OK.
After taking some time for yourself, get your financial affairs in order. Sudden income loss can impact your wallet. If you’re anxious about how you’ll afford your bills, you’re in the right place. You can make strategic moves to stretch your money further. Here are some hacks to stretch your budget post-layoff.
Assess your cash flow
You’ll want to get a clear picture of your current cash flow. Check your savings accounts to see how much money you have stashed away. If you have a sizable emergency fund, that will be helpful. You should also explore all other benefits you may qualify for post-layoff.
Apply for unemployment as soon as possible, as there could be some delay before you receive benefit payments. Also, don’t ignore any benefits your previous employer makes available, like severance pay. These resources can increase your total cash flow.
Review your expenses and make spending cuts
It’ll be challenging to make informed decisions about your money if you don’t know where your finances stand. You’ll want to review your current expenses. You can look at your bank statements and credit card bills to better understand your recent spending habits.
While you can’t eliminate or reduce necessary bills like your mortgage or auto loan, you can make cuts elsewhere and adjust your spending habits. If you’ve been dining out or paying for extra streaming apps, those costs could be reduced to help you stretch your dollars further.
Don’t be afraid to use technology to your advantage. If you’re brand-new to budgeting, consider using a budgeting app. Tools like this can help you track your progress and stay motivated.
Negotiate your bills
Some bills can be negotiated — like your home internet, mobile phone, or cable. It’s worthwhile to call your providers and see if they can extend you a discount. Be honest about your situation because they may be more willing to accommodate your request. You can also get quotes for expenses like home and auto insurance to see if switching insurers could save you some cash.
Get a side hustle or part-time gig to boost your income
Many people impacted by layoffs hope to land a full-time job in a similar role. This is a good strategy, especially if you have prior experience in your industry. But it can take time to land another job, especially if there is a lot of competition.
One way to boost your bank account balance is to get a part-time job or side hustle. Working a few hours a week could help you feel more at ease about your finances.
You can spend a portion of your time each week working to boost your income and spend some time applying for full-time jobs. The work you do now doesn’t have to be a forever solution, so don’t be afraid to explore part-time opportunities or side hustles to hold you over.
Don’t give up hope
Job loss can be a difficult situation. You’ll likely experience complex emotions as you process the news of a recent layoff. But don’t give up hope. Your current situation isn’t forever. You can make moves that make you feel more financially secure as you look for another job. For additional money tips, check out our free personal finance resources.
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