When you are fired or laid off from a job then finding the source of income and managing finance become tough. You should have a plan otherwise it pushes you into deep trouble.
If you are worrying instead of bounce back, then recall what Mike Tyson said:
“Everyone Has A Strategy Until They Get The Punch”
It shows that everyone has a plan all you need to bring it out from yourself. Job loss is a period through which most of the people have suffered at some point. All you have to find out the plan OR if you are not able to discover it, then “80:20 PRINCIPLE” is for you.
What Is ‘80:20 Principle’ All About?
It is one of the easiest ways to manage finance and develop ways to earn money. Here, 80% shows the efforts where 20% reflects the results.
- Ways to earn money
- Managing debts
- Prepare financial diagram
Results consider what you have done while putting efforts. If it shows negative, then you are doing some mistakes or missing something during efforts.
You do not have to worry about it. It seems tough but with below-mentioned points, you can achieve it with no troubles.
Now, let’s start how you can utilise this way to manage finance during job loss
First, start with basic steps…
|Find Ways To Earn Extra Money Besides Savings|
The common problem that you may find during unemployment is to meet the ends need. To manage the daily cost with saving is possible to some extent but it is not good for the long term.
Here, you have to find ways to earn money. You know that a regular job is not the only job through which you can earn money. There are so many freelancing and passive income sources through which you can receive good money.
However, freelancing work will not give you a fixed income as you received in case of regular ones. But you can perform it until you find the next job. In this process, you have to put a lot of efforts. You may have to work for day and night.
Now, let’s have a look at the second part of efforts
|Manage The Debts Fast|
If you own money from different sources, then you have to clear them fast. During unemployment managing them with saving becomes a tedious work. Now, in this scenario, you have to perform the first one, i.e. finding different ways to earn money.
With extra earned bucks you can clear them fast but managing to debts individually becomes tedious work. It would be better if you consolidate (merge all debts into one) them. To merge them you can approach online lenders in the UK that offers guaranteed loans for unemployed people. In this, you can get the funds to manage all the borrowing and now, you have to pay the borrowed money with a single interest rate.
You can do this only if you have multiple debts otherwise you can perform the normal way to direct them.
|Go For The Financial Plan Or Diagram|
It is obvious that the budget you have made during employment is not going to work in case of unemployment.
Now, you have to make a plan that will help you to save more money by meeting the month’s need. You may have to remove many unnecessary costs at least for the time you get the next job. It may seem difficult but it is the only way to manage the cost during unemployment.
These are the things that you have to take care while situate efforts. One point that you should remember and that is TRACK EVERY MONTH.
Track every month: It is very important to check that the procedure you are following is going in the right direction. The best way to it is to track the expense and savings of every month. If you will check the result after two or three months, then you may find yourself in trouble.
So, check every month and if there is any fault, then try to rectify it. Now, we hope that you understand the concept of 80:20 principle. It is quite efficient for one in severe financial loss or loses the job without any notice. All it needs a constant effort and will power and perform it until you stabilise the situation.