It can be tough to focus on finances and recover following a job loss, or other devastating financial situation. If you are in a tough spot due to having recently lost an income, there are some prudent measures that you should take to get back on track.
Consider the following advice to bounce back after a financial hurdle:
- Talk with a bankruptcy attorney. If your financial situation is dire, you may be a candidate for a Chapter 7 bankruptcy. This absolves you of paying debts, with the exception of any taxes, student loans, or child support monies owed. There may be ways to hold on to some of your secured debt, such as a car payment; the best approach is to speak directly with a bankruptcy attorney in your state.
- Discover dislocated worker resources. Depending on the circumstances surrounding your termination, you may be able to get some assistance in finding a new job through your former employer or union. These dislocated worker resources typically include job placement, retraining, or education services surrounding things like resume writing and interviewing techniques.
- Bounce back quickly. Curb the cost of being out of work by finding a job quickly. Post your resume online and register with employment services or sites as soon as possible. Don't allow yourself to be unemployed too long, if possible, as this can also cause some to become discouraged and disenfranchised about the job market.
- Watch out for job search scams. Unfortunately, there are many who make their money by taking yours, and job search scams and finance schemes are a couple ways that they try to take advantage of those that are desperate to find work and make money soon. Usually, if it sounds too good to be true, it is; many scammers target individuals looking to invest severance packages, retirement cash-outs, or other bulk payment. Always check out whoever you are giving money to, either through the Better Business Bureau or a site that reviews and checks potential brokers.
- Protect what you have. Conserve your retirement funds whenever possible, rolling them over in your new position if you can. If you must borrow or clean-out your retirement, be aware that you will get a tax bite taken out.
- Be smart with lump sums. Keep a level head when you do receive lump payments, such as your severance package or retirement savings. Invest prudently and spend wisely to make it last.
- Get an expert's opinion. Any time that you are leaving a job and particularly if you don't know when you will be starting a new one, it pays to consult with an expert. Get financial advice from your union or former employer regarding financial decisions that you will need to make. Talking to these professionals, as well as credit counselors and investment experts, can help you devise a plan to get you through this period of unemployment.
Don't let a job loss get your down; the best thing that you can do is to jump right back in, swiftly, and to keep a close eye on your money and finances. Sadly, there are many individuals waiting to prey on those seeking financial advice or job recruitment, so pay heed and use caution when reaching out for third-party assistance. These tips will help you bounce back and get back on track following a financial crisis, such as the loss of an income. If you're looking for a bankruptcy attorney, visit Shoemaker & Dart P.S. Inc.