If you have recently been made unemployed, it’s natural to be worried about money. You may be wondering what lies ahead and how you’re going to make ends meet without your monthly income.
Even if you start job hunting immediately, it can be a long process, and there’s no guarantee for how fast you will find employment.
Money stresses combined with a period of uncertainty can be detrimental to your mental health, but having a plan in place can help keep you motivated. If you’ve lost your job and are unsure what to do next, here are a few ways you can manage your money and take control of your finances.
Create a budget
Creating a budget can help ensure you are realistic about the money you have in the bank and how far you need to make it stretch. Track your outgoings and set goals to avoid unnecessary spending, and change any habits that are eating into your savings.
Budgeting doesn't have to be a complicated process. It can be as simple as setting aside a certain amount for groceries each week, keeping the money for bills separate so you don't accidentally dip into it, and reducing the amount of energy you use in the home.
If you’ve got a monthly membership to a gym or an expensive mobile phone contract, now might be a good time to ring up and cancel. Subscriptions and services that aren’t essential may need to be cut until you get your income back on track.
Benefits and tax rebates
When you suddenly find yourself unemployed, it’s a good idea to investigate what benefits you may be entitled to. Financial assistance at your time of need can help you keep on top of your rent and bills, and minimise the impact your job loss has on your lifestyle. The type of benefits you can claim depends on your personal circumstances.
Universal Credit is a relatively new benefits system to support people who are either low income or unemployed. Find out if you are eligible to apply, and you may be able to receive a monthly sum of money to keep you going. Your local job centre may be able to advise on what benefits you are entitled to. This is also a great place to start the job-hunting process and get support in finding new employment.
If you haven’t worked a full tax year, you may find you have overpaid on tax and could be able to claim a tax rebate. Ring HMRC or check out the government website for information on how to claim overpaid tax back, as even a small return could help tide you over.
Find ways to make extra cash
Selling things you don’t need can be a great way to earn a quick bit of cash as well as de-clutter your home. Search your home for any items you don’t use such as clothes, games or electronics. If they are in good condition, put them up on selling sites, attend car boot sales or use social media to find potential buyers.
Some people feel the best way to deal with their job loss is to bounce back and start hunting for the next opportunity. Spend your time revising and perfecting your CV and personal statement, and start sending off applications. You could even use this as an opportunity to explore new passions and career opportunities you haven’t previously considered.
Losing your job makes for a difficult time, but there is help and support available for situations just like yours. Don’t be afraid to reach out, whether to a career advisor, your local job centre, or even friends and family.
At Morses Club, we want our customers to feel more in control of their finances. We understand that there are times when expenses crop up unexpectedly, or you just can’t make your income stretch as far as it needs to. When this happens, we may be able to provide a cash loan, often referred to as a doorstep loan, to help you get back on track. Our helpful loan guides and frequently asked questions offer more information to help you decide if a doorstep loan is the best solution for you.