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Job loss can quickly cause financial problems

On Behalf of | May 30, 2019 | Firm News

You lost your job. No matter if the dismissal was sudden or slightly expected due to issues with the company, you undoubtedly still felt a great deal of disappointment when your employer let you go. Even if the layoff had nothing to do with your job performance, you may still feel as if you somehow failed.

These feelings are certainly understandable, as losing a job can be a major shakeup in anyone’s life. Now, you may begin to feel worried about your financial affairs and how you will meet your daily needs without the income you once earned. Possibly, taking somewhat small steps to address your financial affairs may help, but it is also important to remember that more significant options are available.

Immediate action

Immediately following your layoff, you may understandably want to dwell on your disheartened feelings. However, taking action at this time may better suit your circumstances. For instance, you may want to consider taking the following steps soon after losing your job, in efforts to keep your finances on track:

  • Assess your budget: During this time, creating and sticking to a budget may help you stay on track and not overspend. Without a regular income, overspending could cause detrimental impacts on your finances.
  • Consider your job options: Certainly, you do not want to stay unemployed long, so you may want to immediately begin looking for openings or even consider starting your own business.
  • Watch your debt: If you already have outstanding balances on high-interest credit cards, you may want to consider paying off those balances as soon as possible. By removing this financial burden, you may prevent a buildup of fees and penalties that could make your situation worse.
  • Spend emergency funds wisely: Hopefully, you have already built an emergency fund that could get you through a few months without a steady income. Still, you do not want to overspend these limited funds.

Though these actions may seem simple, they could go a long way in financially protecting you and your New Jersey household.

Major steps

Of course, your job search may take longer than expected or your emergency fund did not last as long as you hoped. As a result, you may find that your job loss has caused an overwhelming financial burden that you do not know how to escape. In this type of scenario, it may work in your favor to consider more major steps like filing for bankruptcy. Though this action may seem scary, it could be the relief option you need to get back on track.