When 44-year-old Dele lost his job just three weeks before Christmas, his first reaction was one of panic. He had worked in a construction company for 12 years and assumed that he had a stable job for many more years. Dele was his family’s main breadwinner although his wife worked part-time. They had two children under six and the usual rent and other bills to pay.
Job loss ranks as one of life’s most challenging events and it hurts at any point during the year, but during the season of “good will to all men,” it tends to have a much more devastating effect on people when it happens at such time of the year. Some of the issues involved include adjusting your finances, looking for a new job, and coping with the emotional and social impact of your new situation. But even if you failed to anticipate this sudden change in your circumstances, here are some practical steps to take with a clear positive outlook if such happens.
Don’t panic
When you think about all your bills and the monthly expenses you have to face without a steady income, it is easy to despair. Remain calm and do not rush into any major financial decisions whilst you assess your situation. Even if you are eligible, be cautious about dipping into your retirement savings account.
It would be much easier to deal with both financially and emotionally if you’d prepared for the worst by planning ahead with an emergency fund or insurance. The importance of an emergency fund becomes glaring in situations like this. Do you have any savings? How long will it last based on your monthly bills? If you have been able to set aside say six months of your income in a high yield money market account, you will be able to settle some of your bills and relieve some financial pressure while you look for a new job. But if you have always lived from month to month, this may not be an option.
