Turning Job Loss into Opportunity: How to Bounce Back and Thrive Financially
Hey there, our superheroes, Isaac Lakhi your money maestro here! If you’ve lost your job or about to, it can have serious financial consequences, making it crucial to explore your options to make informed decisions. In this vlog, we’ll talk about dealing with it.
Job loss can strike for various reasons, including resigning, retrenchment, or getting fired. With the recent wave of the Great Resignation, many left their jobs due to factors like extended working hours, limited leave opportunities, and toxic work environments.
As more companies insist on returning to the office, it's possible that some people might quit their jobs. In fact, more than half of developers prefer working from home, with some even willing to quit if forced back into the office.
Given these circumstances, many workers might find themselves jobless. Here’s what you can expect if you lose your job and how to navigate this challenging situation.
Firstly, losing a steady income hits hard. Without regular paychecks, covering essentials like rent or bond repayments, monthly bills, and daily expenses becomes tough.
Secondly, the emotional toll is significant. The stress and anxiety from losing income can severely affect your mental health, especially as savings dwindle and financial stability weakens.
But let’s shift gears from doom and gloom to proactive planning. When you leave a job, you have several financial options:
You can leave your retirement savings within your existing provident or pension fund OR transfer it to your new company’s fund OR transfer your bucks into a preservation fund that allows for one withdrawal before you retire. All these options preserves your retirement bucks and means that you’ll pay the tax man zilch OR, you can withdraw the funds, but the taxman will probably screw you with the tax. This should be a last resort as it impacts your retirement savings.
Now, here’s a few Financial Tips if you gave your boss the finger, been Fired or Retrenched
ONE: Assess Your Current Financial Status: Review your savings, debts, and expenses. This helps you understand how long your savings will last and where you might need to cut costs.
TWO: Create a Budget Aligned with Your Situation: Prioritise essential expenses like rent, utilities, and food. Cut out unnecessary spending.
THREE: Seek Alternative Income: While searching for a new job, explore other income streams such as freelance work or part-time jobs, depending on your skills.
Remember, every setback is a setup for a remarkable comeback. With Lakhify’s help, a positive outlook, and unwavering belief in your ability to overcome challenges, this can be a golden opportunity for personal growth and a brighter financial future. This might just be the perfect moment to pursue something you've always wanted to do but never had the courage to go after. Seize this chance and turn your dreams into reality!
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