Income ManagementLifestyle

How to Prepare for a Redundancy

As more and more companies seem to be downsizing, or closing down altogether, as is the case with Toyota and General Motors, more people than ever are concerned about their own job security. The truth is that the unemployment rate is resting steady at around 6 percent, with many experts not expecting it to get better any time soon. While the economy does seem to be slowly improving, most experts believe this growth is too slow to show any real improvements in the unemployment rates.

With that being said, it is safe to say that nearly everyone is at risk for redundancy. The real question is, how prepared are you if your job become redundant? If you know that you are not prepared for a financial jolt like losing your job, it is not too late to make some preparation plans right now. Below is a look at some things you can do to prepare for a redundancy.

Know Your Current Financial Status
It would be nearly impossible to start preparing for a redundancy without first taking a look at your current financial status. If you have never sat down and really took a look at how much money you have coming in on a regular basis compared to how much money you owe, now is the time. Based on this information, you should create a household budget that will help you better manage your money and start to stabilize your finances.

Pay Down Outstanding Debt
Outstanding debt is a huge problem that many people in Australia must deal with. While this debt may be manageable while you are receiving a steady income, how well could you keep up these payments if you were to lose your job and have to rely only on Newstart Allowance?  The best way to prepare for a redundancy is to start paying off this debt as quickly as you can. Start by paying down some of your credit card debt, one at a time and then move to other types of debt you still owe.

Set Up an Emergency Savings Fund
A crucial part of being prepared for a redundancy is to have an emergency savings account set up just for emergencies like losing your job. To be fully prepared you should have at least six-month’s worth of wages in your emergency savings fund. However, this will take some time to build up, so just look at your budget and determine how much you have available each month to add to your emergency fund, and make a commitment to set that amount aside each month. Overtime this will add up and if you ever lose your job, you will be more than happy that you took the time to create an emergency savings fund.

Update Your Resume
Too often people wait until they lose their job to consider updating their resume. This may make it difficult to remember everything you have accomplished over the years. Instead, create a resume before you become redundant and update it every year. A good way to remember this is to update your resume every time you receive an evaluation at work. If you find yourself on the job market again, you will be able to quickly update your resume and be ready to go. You also want to keep a list of all of your supervisors, and any networking connections you make. It may be these very connections that help you get a new job, if you lose your current job. Also tap into government assistance if needed, especially if you live in an area where fulltime employment may be scarce –

Now is the time to start preparing for a redundancy, even if you feel that your job is still very secure. The truth is, you never know what the future brings, and these steps listed above will not only help you for a redundancy, but they will help you with any financial emergency. Starting these steps a little at a time, will help you secure your finances and provide you added protection if an emergency ever happens or your lose your job.

Image by magerymajestic

Previous post

Make the Best Use of Your Tax Refund

Next post

Is Renting or Leasing Household Appliances a Good Option?



No Comment

Leave a reply

Your email address will not be published. Required fields are marked *