If you, like thousands of others, are facing redundancy in the wake of the pandemic, then don’t panic. With a robust plan you can survive the storm ahead and emerge triumphant. Thousands of people who are currently part of Rishi Sunak’s furlough scheme will be living with mounting concern as the end of furlough draws near. And with businesses suffering the effects of the economic downturn, more people could soon be joining them.
Of course one of the first concerns when you lose your job is the loss of salary and subsequent impact on your finances. Even if you are still gainfully employed you would be wise to consider your personal finances as there is never a better time to plan for the set back of redundancy than while you are still working.
Any financial adviser will tell you that it is wise to have enough money in an accessible savings account to cover your cost of living for six months. This is not to say you should be covering your entire salary, but rather the amount you need to sustain your lifestyle. Some vigorous budgeting as well as careful assessment of your income and outgoings will help you arrive at a sum of money that could comfortably see you through. Lockdown has already helped thousands of households save, however, some simple cuts now can make all the difference down the line.
However, if you are struggling to get close to the amount you need then don’t panic as there is plenty of help out there. A call to the Citizens Advice Bureau can arm you with practical solutions and recommendations. You may want to talk to your landlord and service providers as many are currently offering assistance in the form of late payments or reducing your rates.
It is also worth checking to see if there are any benefits available to you. This is a constantly changing landscape as the government reacts to new information, however, there are various initiatives in place to help create space so you can look for new employment.
Peter Field is a financial analyst and has written for InvestingReviews.co.uk covering topics from pensions, savings, investments and ISAs. His knowledge of the Investment market has proven invaluable, making his unbiased views and opinions open and honest for everyone. In 2021 Peter retired and is working towards enjoying more of the outdoors with his beloved labrador Millie.