How to manage your finances after a sudden layoff
Losing a job can cause a great deal of financial uncertainty, and leaves many people feeling uncertain about how they’re going to make ends meet. Here are seven tips to help you manage your finances through a challenging time.
1. Assess your current financial situation
One of the first things to do after getting laid off is take a look at your budget. Evaluate where your money is going, trim the non-essentials, and prioritize your bills if you can’t cover everything. Once you have a sense of the bigger picture, project your cash flow over the next few months to see how long you can continue on your present course. To help you get started, check out our budgeting tool.
2. Look for alternate income sources
Although finding a new job may be difficult in this current climate, there are other ways you can earn extra cash. Do you have items around your house you can sell? Are there creative side projects like woodworking or painting you enjoy doing while also giving you a possible extra income source? Just be sure to review Canada’s EI Working While on Claim guidelines to make sure this won’t affect your benefits, and speak with an EI professional if you have any questions.
3. Call your creditors
The sooner your creditors know about your financial situation, the more they can do to help. Talking to them right away means they may be able to offer temporary relief until you get back on your feet, which will help protect your cash flow and credit score.
4. Look for creative ways to save
Once you’ve taken a look at where your money is going, it’s time to look for creative ways to cut down costs. Can you cancel any online subscriptions? Reduce your grocery bill by buying store brands? Although these things may seem small, they tend to add up over time. Even a daily $3 coffee costs you about $90 a month.
5. Educate yourself
You’re not the only one asking these financial questions — and there are a lot of great online resources with information on topics such as budgeting, managing credit, and money management to better equip you for the future. A few good resources to start with are the Government of Canada’s financial literacy programs.
6. Get some help
If you’re feeling overwhelmed and are still unsure how you’re going to make ends meet, we’re here to help. Give us a call at 1.800.728.6440 or get in touch by filling out our contact form we’ll find a solution that’s right for you.