How to Budget After a Job Loss | Cleveland Bradley County Teachers Federal Credit Union

Have you recently been through a job loss? Or perhaps you have decided to let your second job go to ease your schedule—either way, you are likely doing a lot of thinking about how to handle your finances.

There are a lot of emotions that come along with the loss of a job, and in the midst of them all, you have to find a way to adjust your budget in order to keep life going. Even if it feels impossible, there is a way to build and maintain a budget even when your income has decreased.

Take It Slow

Losing a job, whether it was your choice or not, is scary. Allow yourself time to process through your emotions.

Give yourself a little grace to mourn your loss so that you can start looking ahead to your future. Updating your budget pretty quickly after a financial change is important, but so is taking care of your mental health. Take it slow and focus on one step at time.

If you already budget, take a look at places you can cut back. Focus on the most important expenses: rent or mortgage, transportation, food and utilities.

Drop any expenses you can from other areas in order to maintain these line items. Subscriptions are a great place to start when making cuts—streaming services, digital books or any other entertainment that you can live without for a little while should go.

If you don’t budget regularly, now is the perfect time to start. Build your budget around those four main areas, and do a deep-dive into where your money is going every day in order to get a clear picture of what should stay in your expenses and what should go.

Cut out grabbing those coffees and quick meals while you are out and build a meal plan instead. If you have debt you are paying down, check to see if those payments can be paused or lowered for a short amount of time.

Get Back on Your Feet

Once you have looked at or created your budget to cover your basic needs, take a deep breath and start looking toward what’s next. Adjusting your budget or building one for the first time after a job loss can give you a clear picture of just how much income you actually need—which may be helpful as you reassess where your future is headed.

While you are on the job hunt or pursuing a new path for your life, picking up some side work might be a great way to fill in the gaps. Even if you take a position that is completely different from your previous job field, it could open your eyes to different possibilities.

Taking on a task you haven’t done before or in a long while can help build new skills and boost your confidence, which might be just what you need after navigating through a job loss.

Once you are back on your feet, or at least can more solidly feel your feet under you again, start considering how you can plan for the future.

Dealing with a job loss can give you an idea of what kind of emergency fund you need to build in the event you are ever back in this position. It can also force you to take a look at your debt and reassess your expenses.

Even when you don’t love your job, no one wants to consider what life is going to be like without it. If you find yourself trying to find your way forward after a job loss, take things one step at a time, adjust your budget and reassess your future. You will find your path again, and you may find yourself much happier walking down it.

Want help building your financial future, no matter what your circumstances are? Contact us to get started.