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Checklist of Things You Need to Do When You Lose Your Job

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Lose Your Job_uk

Unemployment can undoubtedly affect your finances. Not only will you suffer from making ends meet, but you will also lose essential benefits like health insurance. It upsets you but you need to live with it as soon as possible. You need to quickly respond to the situation before your finances get completely out of your control. Pending bills, mortgage payments, rent, and other regular expenses make you worried when you lose your job. However, just pondering over what to do is not enough.

Many people start looking for a side gig to support them financially unless they land a new job, but this is not enough to guarantee that you will not run out of money. Financial experts emphasize creating an emergency cushion because it helps you tide over in this difficult situation, but most of the people, unfortunately, fail to set aside money. Here is the checklist of things you need to do when you lose your job.

 

Get unemployment benefits

Whether you have a side gig or not, you should apply for unemployment benefits. There are three types of jobseeker’s allowance and each of them has certain eligibility criteria. Make sure that you are eligible to claim those benefits. You will get a weekly amount: up to £57.90 provided your age is under 25 otherwise the amount goes up to £73.90. The weekly amount will be £114.85 for couples.

 

Get a temporary job

Unemployment benefits will not be enough to keep the wolf from the door. Even though you whittle down variable expenses, you will likely have cash shortfalls to meet your rest expenses. Once you lose your job, you should immediately grab a temporary job. It is not mandatory that you need to find work in your specialized field. Your aim is to cover your expenses and therefore you should not be reluctant to apply for a job out of your field.

 

Apply for unemployment loans in case of emergency

When you lose your job, you will likely have financial trouble. It is evident that you will have problems to meet all of your expenses. Even though you have income from your side gigs, you are likely to face cash shortfall in case an emergency pops up. The good thing is you can take out unemployed loans with no guarantor. As long as you have a repayment capacity, you can take out these loans. Since you may need to apply for a loan to meet an unexpected expenditure, experts suggest that you should have a side gig.

 

Create a budget and cut down on your expenses

Try to make a budget and look out for the areas where you can cut down. Try to cut back on your discretionary expenses such as magazine subscriptions, gym membership cost and the like. budgeting will help you avoid overspending. If you are already in the red and juggling with multiple debts, give priority to high-interest debt payments and talk to your lender if they can put you on a minimum payment plan.

 

Look for a non-compete clause

If you signed a non-compete agreement, make sure that you do not breach any clause of the agreement while looking for a new job. Some employees have a three-month or six-month non-competent clause in their contract. It will prevent you from working for another company involved in the same activity for a particular time. Whether the clause is enforceable or unenforceable, make sure that it does not restrict your career growth.

This clause is fine as long as the duration is small. Of course, you will find a particular solution if the agreement stops you from proceeding further. It is worth taking legal advice if you have concerns about the restrictions mentioned in your contract. If the duration is longer, you can negotiate for narrowing the term with your employer.

 

Reach out to your network

Now is the time to reach out to your connections. Let them know that you are looking for a job. They might refer you to their employers if they have a vacancy. Do not sit idle when you are out of work. This is the best time to invest in learning additional skills. Nowadays employers look for employees whose skills can solve current problems. Add in those skills in your resume to land a new job.

 

The bottom line

Being unemployment is painful, but it is a temporary phase. You can deal with this situation if you manage your finances carefully. You should apply for unemployment benefits if you are eligible, get a temporary job, apply for unemployment loans if any unexpected expenditure pops up, reach out to your network to quickly get a new job, learn additional skills, update your resume and make sure that you do not breach a non-competent clause of your contract.

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