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1: Don’t freak out

Zero debt

Multiple income sources

One-year emergency fund

I always recommend you have a one-year (not a 1,3, or 6-month) emergency fund for such cases. You make yourself bulletproof from all of life’s unique fluctuations, such as a job loss, separation, or firing.

Hopefully, you have these three things in place, but let’s be honest, most people DON’T.

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If you don’t, below you will find ten strategies that can help lessen the blow and prepare you for future income losses because, let’s face it, if you continue working for someone all you’re life, you’re going to experience more job losses.

Which Bucket Do You Fall Into?

Don’t freak out. Whenever I lose an income source, I think, “Oh.” But I never freak out because I have a one-year emergency fund, several income sources, and no debt. You have no reason to freak out when you have these three things in place. But let’s say you don’t have any of these things in place; still, don’t freak out. Get strategic and formulate a game place to get you back on your feet. If you seek a traditional job, there are millions of jobs available. Never believe you can’t get a job; there are too many opportunities to feel despondent.

Review your budget: Whenever you lose an income source, ensure your current budget and lifestyle still make sense with the loss of income.

Re-allocate your investments: If you have been over-investing and saving, it might not make sense to continue doing so. Temporary cutbacks are okay. Still invest (if you can afford to), but tone it down.

Slash unnecessary subscriptions and memberships: These suckers will suck your budget dry. Cut them all the way down to the ground. I consistently review my budget to see what I can eliminate. Whether you have income coming in or don’t, remove high monthly costs.

Review your other income sources: Are you actually without income, or are you bringing in money from other side hustles you’ve been working on? Maybe this is the time to invest more time, effort, and energy into those to increase your income. Everything is an experiment. See what can come out of it.

Leverage family, get roommates, or do Airbnb: Some people don’t like living with people, but hey, if it puts money in your pocket and helps slash your costs temporarily, why not? I moved in with family because my place wasn’t ready, significantly decreasing my expenses, but moving in with family to save money due to a job loss sounds like a perfect idea, too!

Travel cost-friendly: Whether you have money saved or not, you can find ways to travel budget-friendly. You might have friends or family abroad, you could backpack, do homestays, or go back to school abroad. The travel opportunities and options are endless.

Decrease your housing costs: If you can’t stay with family or roommates, move somewhere cheaper. Housing is one of the most significant expenses. Slashing one of the largest expenses puts a big smile on your budget’s face.

Acquire a new income source: If you don’t have an income source, acquire a new one quickly. If you don’t like it, you can search for a better one after you get your new income source. The goal is to avoid accumulating debt and to be able to support yourself and your family.

Prepare for your next job loss: As weird as it sounds, losing income is one of the primary inspirations behind why I save and invest so much. I never want to be dependent on one income source. If I lose one, I want multiple backups and savings to safeguard me from financial stress and strain. Job losses are inevitable if you work for someone else. Don’t get surprised when job losses happen. Just graciously accept the opportunity, and move forward.

Recap: 10 Things To Do With Your Money After A Job Loss

Don’t freak out.

Review your budget.

Re-allocate your investments.

Slash subscriptions and memberships.

Review your other income sources:

Leverage family, get roommates, or do Airbnb.

Travel cost-friendly.

Decrease your housing costs.

Acquire a new income source.

Prepare for your next job loss.

This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.