How to Protect Your Finances After Losing Your Job
Losing your job is tough. While it can be tempting to dip into your long-term savings to cover your immediate expenses, this can be a bad idea — especially if you’re nearing retirement. Fortunately, there are many other ways to pay the bills and set yourself up for a successful future, like working with Carefree Retirement Funding to learn how you can turn your home equity into cash. Here are some other great ways to protect your finances when you’re out of work.
Head Back to School
If you’re between jobs right now, this could be a great opportunity to go back to school. Returning to school as an adult can help you enter a higher earning bracket, advance your career, or switch fields completely. For help paying for school, look for funding assistance geared towards your circumstances. For example, you might be eligible for special grants if you’re a veteran, woman, or minority.
Another way to save money on schooling is to attend an online university. Virtual schools tend to be more affordable than traditional brick-and-mortar colleges. Through an online university, you can earn your master’s degree in IT so you can work in IT management or cybersecurity. If you’re not ready for a master’s degree, consider pursuing a bachelor’s degree in cloud computing or software development.
Try Gig Work
Gig work is a great way to make money on the side while attending school or hunting for your next full-time position. If you have a marketable skill like writing, web development, graphic design, or video editing, consider launching a freelance business online. Believe it or not, freelancing is often more secure than a traditional 9-to-5 job!
Joining the gig economy might also mean finding work in your community. You could sign up with a ride-sharing service, work as a delivery driver, walk dogs, or clean houses. There are so many ways to make money quickly, both online and offline.
Tap Your Emergency Fund
Losing your job is the exact kind of situation that qualifies as an emergency. If you have an emergency fund, tap into it! Dipping into your emergency fund will help you pay the bills without hurting your retirement savings or taking on more debt. Just remember to build your fund back up again when you find a new job.
Access Quick Cash
If you don’t have an emergency fund — or it runs out before you find work — you may have to seek out other funding options. Find ways to access quick cash instead of pulling money out of your long-term savings accounts. For example, CNBC suggests taking out personal loans or using your home equity to get you through this tough time. Taking out a reverse mortgage may be one of the best ways to protect your retirement savings and access cash in a pinch. If your mortgage is already paid off, a home equity loan is another viable option.
Cut Out Non-Essentials
When finances are tight, it’s often necessary to make some household budget cuts. You may be able to reduce your spending by as much as 50% by evaluating your buying habits and abstaining from nonessential purchases while you get back on your feet.
Remember, this is only temporary. You can add some of these expenses back into your budget once you secure a reliable source of income. However, you might just find that you can live without a lot of the items you eliminated from your budget. Direct this money into your long-term savings instead.
No matter how well you plan for the unexpected, losing your job is bound to take you by surprise. Don’t let this financial hiccup rob you of your retirement plans. If you need help planning for the future, contact Carefree Retirement Funding to learn how you can convert some of your home equity into cash. Call 772-212-1450.
Article by Lisa Walker