Being made redundant can be a big shock and often results in a whirlwind of emotions. You feel that you have been thrown into the deep end and are unsure how to tackle the challenges that are presented in front of you. It is perfectly normal to have these feelings, however, it is important to understand that it is not the end of the world.
Here are a few tips on how to survive redundancy:
Don’t take it personally
Easier said than done, right? It is important to remember that situations arise where companies no longer require a certain position or division and that your redundancy is not always a reflection of you. Put it simply - job roles are made redundant, not people.
Be smart with your redundancy payout
So, you have just received your redundancy lump sum and aren’t sure what to do with it? A new computer sounds great! Or how about a bit of retail therapy? Too many people fall into this mind set when they receive a payment of a few week’s salary and don’t realise how quickly this money can disappear. A redundancy payout is designed to cover a period of expenses (depending on how long you have worked for your employer) whilst you seek other means of employment and should be used for exactly that purpose. Be smart with your money; reassess your current situation and separate your “needs” from your “wants”. This is paramount. Whether you plan on return to the workforce as soon as possible or plan on taking a well deserved break it is important to realise that without a regular income stream, your current lifestyle may be difficult to maintain.
Do you have any outstanding debts?
If so, this should be one of the main focus areas when looking for another job. In particular, try to reduce the debts owed with high interest repayments (e.g. credit cards and cash over the counter loans). These are the ones that creep up on you.
Get back into the workforce
Before you know it, your redundancy lump sum will be exhausted. Get back into work even if it means accepting a lower pay. This may sound daunting, especially if you have maintained a certain lifestyle for a significant amount of time but consistency of income is essential to maintaining your existing investment structures and financial obligations. The job you accept won’t be forever, it may well open the doors to other opportunities, just stay actively employed.
Do your research
When made redundant it is useful to know what types of financial assistance you are eligible for. Centrelink benefits such as the Newstart Allowance can provide financial assistance when you are looking for a new job. However, it is important to understand that there may be a waiting period befor
e you can receive financial support from Centrelink depending on your redundancy payout.
Remember, it is always better to pre-empt and be ready for such things as redundancy, speak to a qualified financial planner today on (07) 3040 4840 and get your affairs sorted so that you sail through these unexpected periods.
The advice on this site may not be suitable to you because it contains general information that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Please also refer to our general advice warning under contact us tab on our website. The article is based on information available at the time of writing only and therefore care should be taken as to the accuracy of the content.
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