The uncertainty that comes with losing a job or redundancy is a challenge, but leaving one role always opens up new opportunities for others. The best thing we can do is be prepared. By sticking to a budget and having savings set aside in an emergency fund, we’ll be better placed to cope with the initial shock and stress of losing a job.
Been made redundant? Step one after losing a job is to take a close look at the budget to see how the household can cope with reduced income. If you have an emergency fund or a redundancy payment, work out how long it will last.
Use this budgeting tool to make or review a budget.
Talk to your bank right away if you might have trouble meeting debt or mortgage repayments as a result of redundancy. They will have options they can talk through with you. Try not to miss a payment before getting in touch.
If you have repayment insurance as part of a personal loan or hire purchase agreement it may cover payments if you are made redundant. Check the policy document for details.
Redundancy insurance is also available on its own or as an add-on to life insurance – check your policies to see if they include this type of cover.
Your employment contract will state if you’re entitled to a redundancy payment and how much it would be.
Find out more about employee rights in the event of losing a job on the New Zealand at Work website.
The key to coping with redundancy is being prepared before it happens. Ideally, we should aim to have two to three months’ expenses set aside as an emergency fund we can call on if we need it. But anything is a start.
Carrying high-interest debt? It might be better to pay that off before starting with saving.
Why do we need a will? People mainly use them to write down family members they want to provide for...
An enduring power of attorney (EPA) is a legal document giving someone the power to act for us if we...
Losing a partner is no time to have to deal with money issues. Yet there is quite a lot to...
When we’re fit and healthy, it’s hard to imagine life changing. But what would happen if we couldn’t earn an...
Life is full of risks of things that could happen – the house burning down, the car being stolen, illness...
Sometimes things go pear-shaped. If an earthquake strikes, our house burns down, our car is in a crash or we...