How to handle your money if you know youre getting fired - TheJobNetwork

How to handle your money if you know youre getting fired - TheJobNetworkSometimes firings or layoffs come out of the blueyou go into work one morning, thinking everything is fine, and thenblammo. Other times, you kinda know its coming. Maybe things arent going so well with your company or your industry, making layoffs a painful inevitability. Or maybe things just havent been going well for you personally, and you know its just a matter of time. Whatever the case may be, if you can binnensee the writing on the wall and you want to make sure youre preparing yourself, how do you tackle your immediate financial future? googletag.cmd.push(function() googletag.display(div-gpt-ad-1467144145037-0) ) Dont make huge purchases if you can avoid it.If youre thinking of buying a house, investing in a friends startup, getting a new car, or whatever, reconsider your timeline. If you lose your job tomorrow and have to spend months on a job hunt, will you be able to afford this big extra expense? If this is something you can put off for at least a few months while you regroup professionally and financially, defer the investment.Know your states unemployment policies.Knowing what youre going to get, unemployment-wise, will help you stay on top of your bills in the aftermath of getting fired.Come up with several different budgets.You probably already have some kind of a general budget in your life, but this is a crisis budget. Identify absolute necessities (like food, utilities, rent/mortgage), and make sure you have enough money to cover those first. The fruchtwein important thing in your crisis budget is being realistic.Its also helpful to come up with a few different scenarios for your budgets. For example, Budget A is the on you use if youre unemployed for two months, with severance and unemployment. Budget B is the one where youre unemployed for six months or longer, with severance and unemployment. Budget C can be the wildcard, if youre unemployed longer, or dont have sever ance or unemployment. If the axe hasnt fallen yet, its important to consider all the different scenarios you might be facing, and plan accordingly to make sure your bills are covered.Get rid of unnecessary expenses and bills.Think about what you actually need in your life, and what are the nice to haves. Do you need cable, or could you get by for a few months with some kind of Netflix + Hulu combo? Do you go out to dinner or do takeout several times a week, when you could just as easily cook? Its time to put serious thought into the costs that can be reduced or canceled.See if you can modify your bill payments.Some of your bills are likely non-negotiable, like electricity or food. Others may allow you to modify your payments based on financial hardship, like student loans. For any bills youre currently paying, its worth the research to see if you can modify your payments on a short-term basis, if possible.Dont panic and stop paying bills.The instinct can be to stop and hoard all the money, because the future is uncertain. And while you may be able to ride out the short-term pain of being late on bills, youre seriously endangering the financial health of Future You. If you can make payments on schedule, do. You want to avoid future repercussions for your credit and finances if at all possible.Getting fired is traumatic and scary, but even if you know its coming, its essential to keep calm and prioritize your personal finances so that you can help yourself get back on track (or stay on track) as quickly as possible.