If you're among the thousands of individuals who have lost their jobs this year, you may feel like your financial plan has hit a wall. There are, however, immediate steps you can take during this challenging time to help minimise the damage and get back on track as quickly as possible. Here are some tips for navigating the time between jobs.
Sticking to a budget
Setting up a budget is a basic component that should be part of
everyone's financial plans already--but it is even more important and
more challenging when you are in transition between jobs. The key here
is to be realistic. Take a hard look what you need versus what you would
like to have, and consider your options for cutting costs:
1. Cook at home more. It's healthier and can add up to big savings without depriving you of good food. You may be surprised how much you've been spending, even if you have only been getting takeout and not dropping a lot of cash at nice restaurants. You don't even need a cookbook--you can find an abundance of tasty, free recipes online. Stocking your pantry is an investment if you do not normally cook, but you should start to see savings within weeks. You don't need special skills, either: watch how-to videos to get oriented.
One of my favorite easy, cheap meals to get you started: Penne all'Arrabiata. Heat 3-5 pinches of red pepper flakes (more or less, depending on your spice tolerance) in olive oil for about 5 minutes. Add salt, pepper, and a can of pureed tomatoes. Simmer for 20 minutes. Toss with pasta and add parsley for a surprisingly satisfying meal you can make with basic ingredients from your pantry. Another idea to keep things cheap, simple, and tasty is to roast a whole chicken with vegetables at the beginning of the week. Use leftovers in salads, sandwiches, and pasta for variety throughout the week.
2. Scale back your internet package, if you haven't already done so. Try calling the company and letting them know you're thinking of cancelling; they may give you a lower rate. We've heard a surprising number of success stories.
3. Consider ending your home phone service. You might only need your mobile.
4. Go shopping with a list to avoid impulse buys. Small additions to the grocery cart can add up to hundreds of pounds over time. Make a list and go to the store at the beginning of each week, so you buy only what you really need.
5. Cancel your gym membership. Exercise at home or look for a cheaper alternative -- if you enjoy team sports, for example, see what clubs there are in your area.
6. If you have two cars and only need one, consider selling or ending your lease on the second car. If your area has public transport, use it more frequently to save on fuel costs.
There are some expenses you should not eliminate, however--cutting some costs too aggressively could actually hinder your job search. Expenses to keep:
1. Fees for professional memberships. Stay current on your dues to keep this networking avenue open. Attend events offered through the organisation.
2. Essential personal services, such as haircuts. Looking your best not only for job interviews, but also on a day-to-day basis, will keep you feeling your best. That said, if you are currently going to a high-end salon, read reviews to find a decent-quality, but lower-cost option.
3. Don't cut out everything enjoyable. Still allow yourself the occasional treat--it will help keep your spirits up, which is important for a successful job search. Try cheaper entertainment ideas, such as renting films rather than going to the theatre. Also, visit your local library for free access to books and movies.
Be strategic
1. Go to your local Jobcentre and maximise your unemployment benefits.
If you are eligible, unemployment payments can help you stay afloat.
2. Update your CV so that you are prepared when a job opportunity arises.
3. Conduct regular searches on a variety of job sites. Try GuardianJobs, Monster or Reed. While many listings are similar across job search engines, some jobs will only appear on certain sites. It pays to cast a wide net when looking for the right opportunities.
4. Network. Get out of the house and interact with as many different people as possible in your field. You may not get a job offer immediately, but they'll think of you if an opening arises.
