Managing Finances When You Are Out of Work


Finding yourself out of work can be an extremely stressful experience. This situation can be even more stressful if you have a family to support. When you are alone and independent, you can choose to go without yourself. But you don’t want your little ones to have to go without while you find a new job! What’s more? You don’t want to sink into debt during this period, as this can create worry for years into the future. If you do lose your job or have to take time off, here are just a few steps that you can take to manage your family’s finances in the process!

Seek Legal Help

If you are out of work due to an accident, injury, or illness that wasn’t your fault, you need to seek out legal help as quickly as possible. Why? If these situations occur, you are likely to find yourself lumped with huge medical bills for treatment and medication. You are also likely to lose income while you recover, or may experience a reduction in your earning potential even once you have recovered. This can all be extremely financially damaging and you don’t need to suffer from this as a result of something that was not your fault! Contact the Dolman Law Group to get the ball rolling in the right direction!

Create a New Budget

Your family probably already lives by a budget. In order to create an effective budget, we will usually take our salary after taxes and deduct necessary outgoings like rent or mortgage payments, energy bills, finance agreements, and groceries. We are then left with a disposable income that we can spend on other luxuries and purchases for the little ones. However, when you are out of work, the amount of money that you have coming in will change drastically. You won’t be able to live by your old budget. So many families make the mistake of still using the same amount of disposable income and slowly sinking into debt, as they simply can’t keep up. Instead, create a new budget. If you have sick pay coming in, budget with that.

Cut Spending

Once you’ve worked out your new disposable income, you’re probably going to have to reduce the amount of money that you spend on a day to day basis to stay within its limits. There are plenty of ways that you can cut your spending - from essentials to non-essentials, there’s almost always somewhere that you can save. Consider reassessing your energy providers and see whether competitors will offer you a lower price for the same services. Opt for own brand food and drinks rather than branded food and drinks. Try going for free days out to museums and galleries rather than paying for days out.

These are just a few simple steps that you can take and each will help to secure your family’s finances in a different way. So, incorporate them into your lifestyle should you ever find yourself out of work!

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