There are times in life when you experience a financial hardship due to the loss of a job or any other reason that may take place in your career. At that time it is understandable to worry about your bills and finances. But it is important to take action towards surviving from financial loss in your career.
Here are some best tips to get rid of financial woes in your career-
Talk to your credit card company immediately
Being suddenly out of job or facing financial hardship in your career is quite stressful. This unfortunate situation increases the worry about your incapability of paying your upcoming credit card bills on time. It adds more stress to your life. At such time you must talk to your credit card company as soon as possible that may be willing to help you and can provide a better solution to your problem.
Take a look at your budget
It is important to take a hard look at your budget during this crucial time in your career. See how much income you have from different sources, how much savings you have, and determine how you spend your money and where you can cut back on unnecessary things.
Prioritize your bills
A good way to handle financial hardships is by prioritizing your bills. Consider the bills that have a required payment each billing cycle, so you can take care of your necessities. Also, consider at least making minimum credit card bill payments each month. This way you can avoid interest payments.
Consider credit counseling
It will be really helpful to meet a credit counselor when you are facing financial challenges in your life. The credit counselor will go through your finances and calculate your payment options.
Avoid taking up any new credit
When you are going through tough financial times, it is better to avoid taking any new credit and adding more liabilities on your shoulder. Avoid making purchases that you don’t need. Also, you should seriously consider taking up any new credit card, no matter how exciting a deal you might get at that time.
Consolidate or refinance your debt
If you have more than one loan or a hefty bill that you think you may not able to pay off even the minimum payment, then you might consider consolidation. This will help you to save money by lowering your interest rate and monthly payment. If you own a home, see if you can refinance to lower your monthly payment.
Slash your expenses
Depending on your needs and budget, you need to cut on expenses and also need to re-frame your budget. You can cut down on eating out, watching movies, shopping, and daily expenses.
Give priority to fixed expenses
Understandably, you are going through tough financial times but still, it is really important to give priority to your fixed expenses like insurance premiums, loan EMIs, investments, and utility expenses. Skipping them will hit you hard and make things worse for your future. Use settlement money from your previous jobs or savings to pay for these fixed expenses.
Borrow from family and friends
If you want to save yourself from paying high-interest charges by taking up a new loan, you should borrow money from your family and friends. Generally, you get that money for time being without any interest charges. Just make sure to return the money on time if you don’t want to ruin your relationships with your family.
Sell assets and take loans against investments
If your bank savings are not sufficient, arrange money for necessary household things by selling off some of your assets or redeeming investments like mutual funds, fixed deposits, PPF, etc.
Stop investments for the time being
In difficult financial situations when you don’t have regular income to take care of household expenses and other important services, stop your investments temporarily.
Use skills to find a new job
Use your experience and skills to reach out to a wider official network and find a suitable job as soon as you can. You can upload your resume for various online portals for quick response.
Take a part-time job
When you are desperate for a job, you feel disheartened and generally take the wrong decisions just to get the job and start earning again. So, instead of taking up a job in a hurry that may not match your skills and working experience, try to get a part-time job until you find the right job for you. This will give you the flexibility to handle your daily expenses with ease.
Financial hiccups and obligations can push you into severe stressful conditions or depression. If you lose control of your emotions and mental state of mind easily, you may face difficulty in facing interviews for the new job. Just focus on your skills, stay positive and boost your confidence to face the interview efficiently.
Try not to dip into your retirement savings
Every problem has a solution. If you have debts as your career is in a bad state as of now, you tend to use your retirement savings. This may lose out on investment opportunities for the future. Instead, you should look for other alternatives to solve the temporary financial obligations.
Don’t leave the job on a bad note
No matter how bad you are feeling, do not badmouth your boss or organization and leave the job on a bad note as you will find it hard to get the new job if your words get spread. No one would like to hire an employee who disrespects the organization if they have bad working experience. Just move on and find a job that fits your talent.
Carry a health insurance plan
It is essential to have a private health insurance plan as medical bills can be very expensive without health insurance coverage. There are many ways to continue medical coverage after a job loss.
Limit your credit card use
Keep credit cards for emergency use only. Use the card for making purchases that you can afford to pay back within a reasonable time frame.
Take help from your family
Let your family help you out in this difficult situation. Spouses may be already working or willing to work to take care of day to day expenses and other periodic expenses.
Get credit counseling
There are many credit counseling resources are available that can help you learn how to consolidate your debt and manage your money effectively.