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10 Ways To Find Money After A Layoff
Losing your job is not the end of the world
Whenever I experienced a layoff, it was always the best thing that happened to me, and finances were never a concern because I consistently do the following:
Live below my means.
Maintain a 1-year emergency fund.
Invest, which is money out of sight and out of mind.
Maintain multiple income sources to avoid relying on one employer.
Keep lifestyle inflation in check by not taking on excessive financial responsibilities.
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If you don’t do these things and experience a layoff, you’re living in a financially compromising position.
Let’s say you read this article, don’t follow the advice, and get laid off.
Well, there’s still hope for you in finding money to help you get through the loss.
#10 Gig Economy Work
Find some gig economy work.
Some of the uber and Lyft drivers I catch a ride from recently lost their full-time jobs but always have driving to fall back on.
Another woman I recently chatted with got laid off but has a part-time consulting business.
She has a few clients that will keep her afloat while she seeks another full-time role.
#9 Credit Cards
The cool thing about credit cards is that they offer a 30-day interest-free loan.
During the 30 days, you can charge your expenses and bills to your credit card and pay it back before the billing cycle ends so you don’t incur any interest.
If You Have Part-Time Work
Let’s say your part-time work covers half the bills; you can use a credit card to cover the other half.
If you time it right, you will never go into debt.
Example
Let’s say Sally earns $1,000 on the 1st of every month.
Her expenses total $750.
All of Sally’s bills are due on the 5th of each month.
Instead of using cash to pay her bills, she charges her credit card, which has a zero balance since she hasn’t accumulated debt while working.
Her credit card bill is due on the 2nd of each month, and her new billing cycle starts on the 3rd of every month.
Sally pays her bills on the 3rd of each month in full.
By her next billing cycle in July, she will have $2,000 in cash, of which $750 will go on the second of the month, leaving her with $1,250, zero debt, and all of her bills paid on time.
She can actually save and invest money every month on this plan without going into debt or getting penalized with interest fees.
#8 Sell Your Stuff
Plenty of apps provide a forum for you to tell your stuff.
Get rid of everything you don’t want, don’t like, don’t use, and don’t need.
Then put that money into investments to make up for the depreciation on the items over the years and to pay yourself back.
#7 File For Unemployment
I was out of work for six months once but never thought to file for unemployment.
If I could do it again, I probably wouldn’t file because I don’t want to get too comfortable.
However, the money is available; invest it while you seek your next path.
#6 Create A Product
Just because you create a product doesn’t mean it will sell right away, but if you don’t create a product, you can be 100% sure it will never sell.
#5 Leverage Friends
I always commend people who aren’t shy about asking for help.
If you lose your job or an income source and want to replace it, tell people about it. You never know who could help you in an instant.
After my job loss, I was immediately put in contact with someone who found me an opportunity that started two weeks later. That was too damn easy.
#4 Get Rid Of Your Priceiest Expenses
If you have a car but don’t need it, sell it. I was chatting with someone yesterday who lives downtown.
They boasted about how they sold their car and could walk everywhere.
Even if you don’t live downtown, if you don’t need to drive much, get rid of the car, which will alleviate you of a car note, car insurance, gas (or electricity), and free up some extra cash flow.
#3 Move In With Family or Friends
Living with others to downsize and decrease your expenses will help you mitigate your expense load and help whoever you stay with bring in some extra cash flow.
It could help them pay off their place faster or allow them the opportunity to invest more money every month.
It’s a two-way street. Both parties can help each other.
#2 Don’t Overspend
Losing a job can be emotional – especially if you put all your eggs into the basket.
If you have access to credit cards and personal loans, as most people do, you can quickly create a pile of debt.
Avoid this. Live modestly, and focus on replenishing that lost source of income.
#1 Investments
This is the last option. I highly recommend you never utilize investments to cover expenses, but if it’s the only option, the money is there.
Someone I know always used their investments for emergencies, except these “emergencies” weren’t emergencies at all.
One situation involved using their investments because they didn’t have an emergency fund or credit card because they had poor credit.
Another situation involved using their investments for traveling.
Now, why would you ever do that?
Leave your investments alone at all costs; these are working 24/7 on your behalf to create more money for you!
Want to read more on the basics of managing money? Check out this list of curated articles.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.