4 Quick Tips to Protect Your Piggy Bank When Losing A Job

Nothing can prepare you for the sinking feeling that comes from losing a job. After the shock wears off, you’re left with fear and self-doubt. You are left wondering when a new job will come along and how you’ll stay afloat in the meantime. If you’re feeling a bit lost right now, you aren’t alone. Dealing with job loss is something many of us experience at some point.

The question is – how are YOU going to respond? And what can you do to get your finances back on track – now and for the future? The Budget Planner from Finance Free Life is a great starting point, along with these tips for making the most of the situation you’re in.

The obvious answer to solving your financial worries is to make money while searching for your next job. And who knows – what starts as a temporary source of income may even turn into a permanent solution.

Start Your Own Business

Losing a job is something we can’t control, but this unexpected event could be a blessing in disguise. As the website All Business explains, losing your job can be a wakeup call that shifts your mindset from employee (dependent on a paycheck) to entrepreneur (who takes charge of your financial future).

The hard part about starting a business while you’re out of work is that money is already tight. You’ll need to choose something that requires little to no upfront investment. Fortunately, as long as you have a skill or interest and a good work ethic, there are countless ways to become an entrepreneur without spending a fortune.

The most important thing is to be financially savvy when starting a business, which means spending wisely on startup costs but also protecting yourself financially. Even if you think of this as a side hustle, you are starting a real business, so you’ll need to go through all the legal steps involved.

We suggest forming your business as an LLC because it can protect your personal assets from liability. Don’t worry – this doesn’t have to be scary! It’s easy to search online for your state’s requirements, including filing fees and the process of ensuring your business name isn’t already registered. Then you can be sure that your bases are covered before launching your new venture.

Earn Online in Your Spare Time

Finding a new job is time-consuming, but you’ll need to take breaks, so why not fill your break time with quick (legitimate!) ways to make money online? Some people call this gig work, but whatever you call it, the opportunities are out there. If you aren’t sure where to start, The Modest Wallet outlines several of the best options, including delivery jobs, driving jobs, manual labor, services and more.

Get Your Budget Back on Track

Staying on top of your budget requires a two-pronged approach. This includes not only what you can earn while you’re out of work but also what you can save. That’s why Money Crashers recommends looking at your personal budget ASAP to determine where you can cut spending. This can include extras like entertainment, as well as lowering bills by conserving energy and negotiating for lower interest rates.

Protect Your Financial Future

You may feel like you’re just trying to get by right now, but that doesn’t mean you shouldn’t think about your future too. Start by looking at your retirement plan and deciding whether to roll it over or transfer it to a future employer. It’s also essential that you take steps to avoid going into debt while money is tight, and last but not least, this is the perfect time to learn new skills.

Some of these steps, like learning new skills or starting a business, may not pay off immediately. Eventually though, they will help you get on better financial footing for the long-term. Picking yourself up and moving on from job loss isn’t easy. But take heart – this trying time will come to an end. With the right approach, you’ll come out of it even better than you were before.

This is a guest post written by Katie Conroy from www.AdviceMine.com. Be sure to check it out!