In today’s uncertain times many Americans are going to be losing their jobs.
While it is impossible to predict the financial markets there is a lot we can do to be prepared for a possible job loss. There are a number of things that we can do to prepare ourselves if we are losing our jobs.
If you want to be prepared for a possible job loss, here are a few tips for everyone:
Tip #1. Adjust Your Budget
The first thing to do is to adjust your budget. How much do you bring home from your paycheck? What are your living expenses you need to pay? Most people don’t realize how much money they spend. By reading your budget you will learn exactly where your money is going. By filing out a little notebook and keeping track of what you spend it will give you an idea how to cut back. The extra money can be saved and put towards paying bills.
Tip #2. Have an Emergency Fund
If you don’t have any money in a secure account, it is risky to have cash with you for emergencies. By having cash you know you are not putting yourself at risk of any emergencies. An emergency fund is not an investment or a long term plan. It is just money to help with emergencies. By having cash you will be more prepared and less likely to have a job loss.
Tip #3. Seasonal Funding
Almost every company, including restaurants, has some sort of payment system. If you don’t get paid every week or your bill is due around a holiday or a week at the end of the season you may be forced to pay your bill and eat since you don’t get paid that week. It is way to late to be thinking of any savings or budgeting for coming up with money to pay the bill. Find a source of cash for the bills due the Annual Credit Card Purchase Season.
Tip #4. Buy in Bulk
Stores are vying for your business. They will sell their products and put them on sale. Only buy items that you will use. Is it your restriction to buy beery items or the fresh produce stand in the produce section? Learn to the store and buy in bulk. Try the items not just in the grocery store you run by. Buy the minimum amount that the store will sell and you can add to that the extras that they might have too. For instance, if the store has to sell rotiss Machina they will mark it down on sale. Ask for special items any time the store puts a big sale on it with a big sign like they have been doing in the produce section.
Tip #5. Buy onsight
Vacations are very expensive. We have automatic payment plans and most people aren’t willing to forego their regular payments just for savings. If you are saving money by buying in bulk and only paying for the amount what you will use you are getting the travel maybe it is for vacation or it to take a long family out for Christmas. Does your travels cross state and Federal lines? If so then you can save on your vacation. Most credit cards can be used world wide and with no fees. Find a Savings Account with perks like gas points or travel miles and transfer the funds to your savings.
Tip #6. Pay on Time
It is very important to make sure the payments are paid on time. Make sure you have money saved to pay the minimum payment. If you will pay the entire balance when it is due, make sure you make multiple payments to avoid interest charges. Individual cards might have a lower interest charge but this will not save you a lot in the long run. Remember you are trying to look for ways to save money not spend more. By paying your balances on time you can save a lot of interest charges.
Tip #7. Budget
Budgets are a great way to manage your spending. Make a list of your bills and the amount that was paid. From all of your statements, subtract the amount of money spent on gas, groceries, or clothes. Subtract the total from the total amount of money that could be saved. Is there a percent that is being spent that would need to be saved? Create a budget and stick to it.
Tip #8. Take advantage of Rewards
One of the easiest ways to save money is on your credit cards. Make use of rewards programs for free products and airfare for trips. Most of the National Express, Visa, and MasterCard credit cards. You can also get a percentage back from any place that you shop.
Tip #9. Investment Insights
If you have any investment experience, share it. Hire a financial adviser to look financial for you. If you only know how to balance your checkbook and you have little investment experience, you should hire an investment advisor and add to your investment portfolio.