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Career Advice

Coping with Redundancy. Part 1 – Money

Sadly for many of us, redundancy and potential enforced job loss, is still very much an ongoing fear. The global economy, whilst still wavering between recession and minimal growth, gives very few people the security that their jobs are safe. Part 1 of our “Things to consider”, looks at the part of redundancy, that can scare people the most…..money.

Do you have your house in order?

If redundancy was to happen tomorrow, what protection do you have? Sometimes, even if you fear redundancy, it often does not actually happen, but then again it can just creep up on you, and before you know it a ‘consultation’ is called. There are things that you can do (they usually cost) that will give you extra security, should the worst come to the worst. An income protection policy is a luxury, but could be a worthy cost if you think that your job is not safe.

Be aware though that with most policies, you have to pay in for a while before you can make a claim. It may however help you out in the short term, while you look for an alternative job. Paying outstanding debt now, while you still have a steady income and getting rid of unnecessary credit or store cards, would be a good place to start. In America, paying in to private health care schemes is the norm – so if you are stateside, consider what you would do if your job was to go…

What do you need and what can you do without?

Apart from the big costs, what can you do to cut down expenditure? From personal experience, you can easily save a few hundred pounds a month, and in real terms, your standard of living actually changes very little.

Do you really need those 200 extra digital TV channels? Could you buy your weekly food shop cheaper elsewhere? Do you need that second holiday you always have? Can you make cooking good food at home, as exciting and fun as eating food out – and save yourself a small fortune too?

Do you need to drive – when you can walk that one mile? Or could you use public transport, as opposed to getting a cab? Can you not read the news online, instead of buying a daily newspaper, and do you really need that latte you buy in the morning on the way to work, every single day!!

Being frugal with money – does not mean missing out, and one should also realise that life is too short to cut out everything. However you can see from the basic list above that things can be done to look at costs, without costing you your lifestyle!

Can you do better elsewhere?

Cutting costs does not necessarily mean cutting back. Use price comparison sites to see what utilities and amenities you use, that you can get cheaper elsewhere.

Can you get your car insurance, house insurance, life insurance, electricity, etc  – cheaper elsewhere?

What are you entitled to?

We are no redundancy experts, but the first thing you need to consider is if redundancy does happen is to determine what your employers owe you, and what does the law say you should get?

It is probably best to check your terms and conditions of employment, and see if there are any particular sections, with regards to redundancy pay. If there is nothing that you can see that is specific to enforced job loss, then you may be just entitled to a statutory minimum. Again, as we are no experts on this and each country has different laws – check what applies on your own country first.

Post redundancy – what financial support is given, in terms of housing benefit, unemployment benefit etc. Don’t be afraid to ask and also appreciate that you have probably paid in more than you will ever get back out, so don’t feel too proud to ask for any state support that is available. Again – you need to check out what you can get, depending on where in the world you live. Some places offer more support than others!

Is it worth holding out?

If you are able to find out what you will get (in terms of financials) if redundancy was to occur, try to weigh up, whether waiting for redundancy is actually to your benefit! If, for example you had plans to go travelling around the world in the next year and the pay-out you get is rather hefty, it may be a path that some people are willing to take!!

Redundancies are never easy. But, we hope some of you may find these basic tips useful, if you are unfortunately facing possible redundancy. We’d love to hear any other tips or advice that you think would be worthwhile sharing. Please feel free to let us know via the comments section below.

One of the best things that you can do to keep your finances in check is by signing up for a prepaid debit card from Pockit. A prepaid debit card is a great way to control your finances, visit www.pockit.com for more information.

 

 

 

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  1. […] week we started the Coping with Redundancy feature by looking at how you can manage and prepare your finances – if redundancy is on the […]

  2. […] Part 1 of Coping with Redundancy we focused on the financial implications of redundancy, in Part 2, we looked at the issues of mindset. Now in Part 3, we look at what you need to consider […]

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