Back to School at FamilyEducation.com
Home > Mom's Life > Work > Career Resources > Financial Strategy Planning after Job Loss
|

Financial Strategy Planning after Job Loss

In This Article:

Page 1

It's nice to think you'll find another job within a week or so of losing one, and perhaps you will. Chances are, however, it will take longer than that—maybe much longer—to find a job you want.

For that reason, it's important to take some time to strategize your finances. The first thing you should do is to realistically assess your situation.

Figure out exactly what income your family has. This shouldn't include an emergency fund or severance pay that you've put away but may include the following:

  • Unemployment compensation

  • Income of spouse/children

  • Interest from saving accounts

  • Union assistance

  • Dividends from investments

  • Income tax refunds

Next, make a list of all the bills you're responsible for paying, and compare that balance against your income. We've already discussed the areas in which it may be easiest for you to cut expenses and save money, so be sure to consider those. If you think you're going to have trouble making your required payments, however, consider these strategies.

Money Morsel

People over 40 are protected from employment discrimination based on age by the Age Dis­crimination in Employment Act. If you feel that you were fired, or are not being hired, because of your age, you can contact a lawyer or find out more about the act from the U.S. Equal Employment Opportunity Commission. It's on the Internet.

  • If you have a mortgage, you may be able to renegotiate payments so that you'll pay less each month until your regular income resumes. Of course, this will extend the overall life of your mortgage but perhaps can help you to avoid a current problem.

  • If you're paying rent and think you're going to have a problem making the payments, talk to the landlord before you run out of money. People are more likely to be sympathetic if you explain your situation, rather than simply not paying what you owe.

  • Discontinue direct payment of bills from your checking account. While this is normally a convenient service, discontinuing it at this time will allow you more flexibility in deciding which bills to pay at specific times.

  • Discontinue automatic payments into investment accounts, college savings, or whatever. You'll need to meet your bills first.

  • Check the yellow or blue pages of your phone book to see if there's a consumer counseling agency in your area. These agencies often offer their services for free or at a nominal cost.

  • Check with the utility agencies with which you deal about a budget plan that may lower your monthly payments.

  • If you have a cash value life insurance policy, you may be able to borrow money from it, if necessary. Ask your insurance agent for more information.

  • Consider taking a temporary job in order to generate more income. Remember that even if you're getting unemployment pay, you can still earn up to 40 percent of your unemployment benefits without penalty. If you're earning $300 a week in unemployment, you can earn up to $120 in salary.

If you plan carefully, chances are you'll pull through a period of unemployment relatively unscathed. Don't think, however, that you can continue to live in the same lifestyle that you did while you were working.



Next: Page 2 >>

More on: Family Finances

|

Excerpted from The Complete Idiot's Guide to Personal Finance in Your 40s and 50s © 2002 by Sarah Young Fisher and Susan Shelly. All rights reserved including the right of reproduction in whole or in part in any form. Used by arrangement with Alpha Books, a member of Penguin Group (USA) Inc.

To order this book visit the Idiot's Guide web site or call 1-800-253-6476.


August 27, 2014



Don't be afraid of fats! Healthy fats, like those found in nuts, avocado, or cheese, make great lunch additions or snacks, and will help keep your child full until the end of the school day.


stay connected

Sign up for our free email newsletters and receive the latest advice and information on all things parenting.

Enter your email address to sign up or manage your account.

Facebook icon Twitter icon Follow Us on Pinterest

editor’s picks

get ready for school!

We’ve got your
shopping list,
lunch menu,
and more.

GO

highlights

Join BIC on our mission to save handwriting and Fight For Your Write! Writing helps kids become better readers, boosts their confidence and sparks their creativity. Visit BICFightForYourWrite.com to sign our petition to save handwriting!

11 Coolest Lunch Boxes for Kids
Send your child's lunch to school in style! Check out our picks for the 11 best lunch boxes with great features from BPA-free accessories to spill-resistant fabric.

7 Important Back-to-School Safety Tips
Follow these back-to-school safety tips to make sure your child stays safe on the way to school, in the classroom, and while on the playground.

Kindergarten Readiness App Wins Gold
Our Kindergarten Readiness app won the Gold Award of Excellence in the educational category at the 2014 Communicator Awards. This valuable checklist comes with games and activities to help your child practice the essential skills she needs for kindergarten. Download the Kindergarten Readiness app today!