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Your redundancy will likely be one of the hardest times in your life. But, with these money-saving tips, you may just be able to get through it…
There’s no denying that we’ve fallen on hard times. For all of us, this is a social situation we’ve never found ourselves in before.
It’s also a rare window into the world of redundancy many faced during the 2008 recession. Especially for youngsters, who have just made it into the workforce, this was something we never could have predicted. So, you’ve been made redundant, what now?
Whether you’ve sorted your settlement agreements, or you simply don’t have a plan for what’s next, budgeting will certainly be on the mind. So, with these 10 tips for budgeting when you have little to no incomings, you came to the right place. Read on for more…
10 tips for budgeting for surviving redundancy
Planning ahead is one of the most essential elements of ensuring you don’t overspend. After all, if you’ve been made redundant, the likelihood is that you won’t have the usual incomings you’re used to.
So, starting with the necessary outgoings, including rent, bills, mortgage, food, and toiletries, how much is left at the end of the month? By working all this out, you can be prepared for the weeks ahead, and make sure you don’t spend any money you don’t have.
There are a number of online resources, which allow you to plan your monthly income and predicted expenditure. This way, you can be sure to map where you might be making a loss, and plan accordingly.
Swear Off Luxuries
This may be one of the most difficult parts of being made redundant. We all love to treat ourselves every once in a while, especially when pay-day comes around. What’s more, with shopping now at our fingertips, through e-commerce sites, the temptation is truly magnetic.
But, you must exhibit self-control. Through spending this time focusing on the job hunt, rather than your own fancy whims, you’ll hopefully find a new job much quicker. Then, when you finally find yourself a brand-spanking new job, that you’re sure to love, you can go wild, and treat yourself!
Make it Difficult to Spend
That said, what if the call to spend is simply too much to handle? For some, shopping is actually an addiction, so what then? Well, the best thing to do is to make it much more difficult to access your money, through a number of ways, including:
- Putting your credit or debit cards somewhere safe, so you can’t type those digits into the nearest computer to make a spend. For extra security, pop them in a bowl of water and freeze them so they can’t be accessed!
- Transfer any spare money into an ISA. This way, you should feel less inclined to take money out, as you won’t be able to put it all back in again.
- Delete your mobile banking apps, for the time-being, so you can’t as easily transfer money to-and-from accounts.
- Freezing your card accounts – although a little extreme – could be exactly what you need to stop spending.
Okay so you’ve been made redundant, and have almost no monthly incomings, and now you have to ask someone else for money!? It may seem like a lot to handle, and there’s no denying it’ll be hard. That said, desperate times call for desperate measures.
Some of your friends and family will likely have spare money up their sleeves. No one wants to see someone they love struggling, so don’t be afraid to ask them to support you right now. You’d do the same for them, right?
This little loan should help to keep you afloat until you can find a new job. Then, you can repay them, maybe even with interest, once you’re back on your feet.
We all need to eat, so food will definitely be one of your essential purchases. That’s not to say that it has to cost you a small fortune.
If you’re someone who usually shops organic, or consumes lots of vegan dietary supplements, now is the time to rethink your spending habits. This isn’t to say that you completely change your dietary habits, but shopping cheaper is the key.
Learn to cook and stick to the most basic ingredients; canned beans and pulses, vegetables, and chicken. What’s more, head to your cheapest supermarket, and buy bulk packets of potatoes, or the like. Also, when it comes to toiletries, think “do I really need this designer makeup, or can I go without this month?”
Whatever it may be, just remember that this won’t be forever. Spending wisely on necessities during this tough time will help you to focus your mind on the matters at hand; finding a job you want, so you can start spending as normal again.
Get a Part-Time Job
Job hunting really is one of the most stressful and difficult tasks anyone can do. The amount of rejection you are likely to face will not be easy, and perseverance is certainly key. With this in mind, it’s very unlikely that you will find your dream job at the click of your fingers.
So, the next best thing is to look for a part-time job. For example, something in retail or at a supermarket could do the trick. You could even see if your local newsagent or grocer’s need a spare hand, and this little bit of income could really tide you over.
Start a Side Hustle
These days, starting a side hustle is something many people are doing. In fact, it’s said that around 40 per cent of UK workers now have a small entrepreneurial business on the side of their daily job! This comes as no real surprise, considering the insecurity of the job market right now, and the recent social construct of “the grind” or “the hustle”.
Although some may see this as damaging, for someone who’s just been made redundant, a side hustle could become your full-time jig! It may surprise you to realise that, if you have a hobby or a skill up your sleeve, it could be turned into almost any business of its own. By focusing on something you love to do, be it art, writing, jewellery-making, brewing, or anything in between, who knows what you could achieve?
Alternatively, for those who already have something else on the side, this could be the chance you need to kickstart your new career! Use this time, just as you would in your usual 9 ‘til 5, to market and grow your side company. Who knows, it may be enough for you to change your life for the better.
Try to Avoid Social Gatherings
When you’re trying to budget as much as possible, social gatherings really are the death of your bank account. It’s so easy to say, “okay, just one” when you’re at the pub together, but this one beer here or there could really damage your bank account.
Yes, you may want to enjoy some time hanging out with your friends. After all, having no work to go to is a luxury you may never face again! But, you must be as sensible as possible during this situation, and avoiding unnecessary expenditure is part and parcel of this.
So, swear off any social gatherings for the next few weeks, and dedicate your time to the job hunt. Even if it’s just a part-time job to keep you afloat until something more appropriate comes along, this is absolutely the key.
Reduce Your Bills
It’s highly likely that your bills are something that cost you the most every month. That said, you might not be getting the best deal possible, so why not try and reduce these bills? This may sound like an impossible task, but trust me, it works!
There are a number of ways you can achieve a lower rate for your monthly outgoings. Some of these could include:
- Call up your provider and ask for a better rate;
- Get a water meter installed, and take short showers rather than baths;
- Wear a jumper around the house, and turn the heating off;
- Purchase more efficient water outlets, like showerheads;
- Use comparison sites to find a better deal;
- Purchase a different phone contract – one which fits your lifestyle a bit more;
- Or, use your car less, after all, you’ve got nowhere else to go during the working day!
Move in With Your Parents
Lastly, and something which may have to be the last and final straw is moving in with your parents. The likelihood is, your parents will have paid off their mortgage by now, and have no major outgoings, except bills and food. So, if they are open to it, this could be your best option.
For many people, not having enough money to survive is a terrifying prospect, and something which keeps people up at night. So, in order to combat these fears, taking away your monetary concerns all together could be the best solution.
Through moving in with your parents, thoughts of rent and bills will no longer be an issue. Now you can go about your job hunt with a clear mind.
Think These Money Saving Tips Will Help You Through Your Redundancy?
This time in your life won’t be easy. That said, by implementing these 10 top tips into your budgeting routine during this redundancy, getting through to the other side should be that little bit more manageable.
Do you have any more tips for people who are stuck in this position? Or, perhaps you have found these tips useful, and are ready to try them out? Let us know, in the comments below, and let’s get through these tough times together!