Protecting Your Lifestyle If You’ve Been Made Redundant
Being made redundant can feel like what you have worked so hard for is now much harder or further away from achieving. The size of your redundancy payout and current savings can affect how you alter your spending until another position has been secured.
Here are some tips that may help protect your lifestyle during this time:
1. Make use of interest
Depending on the size of your payout, it may be worthwhile to deposit the money into a savings account. This will allow the sum of money to earn interest before using the payment in other places.
2. Create a budget
Having a solid understanding of your personal cash flow is a great starting point when piecing together a budget. It may be some time until a new position is secured, so understanding how your finances will look in the meantime is a great first step.
3. Paying off debt
With a large sum of money, it can be tempting to pay off personal loans or credit cards or put some cash towards your home loan. While these can be great options depending on circumstance, other important bills and day-to-day living must be considered. If putting money towards debts is a good option for you, you may consider paying off loans with higher interest rates first such as credit cards.
4. Placing mortgage payments on hold
Following so many job losses due to the COVID pandemic, banks have introduced many assistance options to help homeowners through difficult times. Options may include delaying or restructuring repayments extending loan terms or switching to an interest-only option to name a few.
5. Check superannuation and insurances
Becoming unemployed may affect insurances and superannuation benefits. Some insurances may not allow claims such as income protection or TDP if you become injured or ill while out of work. This may be working a discussion with your insurer on how your policies are affected.
6. Professional advice
Redundancy could mean a financial setback for many long-term goals. Seeing financial advice from an experienced professional can help you make informed decisions regarding your redundancy package and how to stay on track.
Below are some articles that may interest you:
- Is the Economy Stuffed? Live Webinar Recording
- Common Mistakes Made During a Recession
- What Does the Recession Mean for Me?
IMPORTANT INFORMATION: This blog has been prepared by Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licences (Number 233209). The information and opinions contained in this presentation is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. Any individual making any investment or borrowing decisions should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to borrow funds or purchase, sell or hold any particular investment. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of, credit contract entered into or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog may change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.