Financial Matters: How to Handle a Lay-Off
It’s an unpleasant reality that in our current economy many workers experience being laid off – and that unfortunately includes nurses.
Being laid off can be overwhelming and the first thing you probably worry about is how you will cope financially on less income. There are some strategies that laid off nurses can use to cut expenses and the stress of a lay-off. While you’re looking for your next nursing position, follow these practical budgeting tips from Tiffany “The Budgetnista” Aliche, author of The One Week Budget: Learn How to Create Your Money Management System in 7 Days or Less.
If you haven’t been laid off, but feel there is a threat, follow Aliche’s four step plan:
Step 1: Begin preparing now by cutting back. Now is the time to drastically reduce your spending. Put the money you save toward your emergency account.
Step 2: Pay-down credit card debt and store debt. Credit card debt it very expensive, but even more expensive is store debt. Pay off any purchases you have first. You don’t want to lose items due to lack of payment. After that, work on your credit card debt. You might need the limits as an additional back-up.
Step 3: Consider opening a new “emergency credit card,” while your credit score is still (hopefully), decent.
Step 4: Update your resume and let friends and family know you’re looking for a new job.
If you’ve been laid off, cut these non-essential “extra” expenses:
- Cable (immediately)
- Cell phone bill: Get your usage assessed. You may qualify for a simpler plan that costs less
- Dry cleaning: Try Dryel, an at home dry cleaning product
- Eating out
- Grooming: Do your own touch-ups between salon visits
If you have been laid off, be sure to:
- Reach out to your service providers and put them on notice (car insurance, loans, mortgage, utilities, etc.). Ask what kind of help they provide for clients experiencing financial hardship.
- STOP spending on non-essential items. If it’s not absolute need, don’t buy it.
Finally, Aliche says, “you have to start living at your financial baseline. That the lowest possible budget your life will allow; a no-frills life. Every penny spent has to be done so wisely, because there is no guarantee it will be replaced anytime soon.”
For more savvy budgeting tips, visit The Budgetnista website.