Financial Strategy Planning After Job Loss
The coronavirus is already forcing companies to lay off workers and the job losses are likely to mount rapidly as the global health crisis drags on.
If you are someone who has been impacted, we have put together financial strategies you can plan for after job loss.
To start - Figure you what income your family has. This shouldn't include an emergency fund or severance pay that you've put away but may include the following:
- Unemployment compensation
- Income of spouse
- Interest from saving accounts
- Dividends from investments
- Income tax refunds
Next, make a list of the bills you are responsible for paying, and compare that balance against your income. In a previous blog, we've shared tips on areas in which it may be easiest for you to cut expenses and save money, so be sure to consider those.
If you think you're going to have trouble making required payments, consider these strategies:
- If you have a mortgage, you may be able to negotiate payments so that you'll pay less each month until your regular income resumes. Of course, in doing so i would extend the overall life of your mortgage but it can be a possibility o avoid a problem.
- Discontinue direct payment of bills from your checking account. While this is normally a convenient service discontinuing at this time will allow you more flexibility in deciding which bills yo pay at specific times.
- Check with the utility agencies to talk about a budget plan that may lower your payments.
- Consider taking a temporary job in order to generate more income. Remember that even if you're getting unemployment pay, you can still earn up to 40 percent of your unemployment benefits without penalty.
If you plan carefully, chances are you'll pull through a period of unemployment relatively unscathed. Don't think, however, that you can continue to live in the same lifestyle that you did while you were working.
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