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Managing your finances

Being made redundant can bring with it the fear of financial insecurity, even if that doesn't end up being the reality. This page is dedicated to pointing you in the right direction when it comes to dealing with your finances - whatever your circumstances. It's very hard to think about your future if you're constantly beset my money worries so this is a critical first step in rebuilding your life after redundancy. 

If you don't already have a document that outlines your outgoings and income, now is the time to set one up. You can download our example 'Household Expenses Tracker' to get you going; you'll find it at the bottom of this page. You can also find lots of money saving tips on Martin Lewis' great site moneysavingexpert and in his book 'The Money Diet'.


Where can you make economies?

Once you can understand exactly where your money goes every month and what income, if any, you have coming in, it will be easier to see where you can make economies, or how long you can last without a regular income from another job. Not being at work does mean that you'll spend less on e.g. transport, buying your lunch, child care etc, so you may find that you do need a little less than you thought to survive. Whatever you do, don't panic. You might have a new job to go to very quickly so, don't waste money but don't go mad and put your house on the market straightaway either.

Economy Tips

• Do you have an insurance policy to protect your mortgage payments or credit card payments? If so, dig them out, read the small print and make a claim as soon as possible if you can.
• However difficult it may be, it really is best to share this information with your immediate family, if you have one, so that everyone can help to contribute to being careful about spending priorities and savings that can be made.
• The more you know about how long you can last without a regular income again, the more easy it will be to concentrate your goals and efforts in the future.
• If you will be receiving a lump sum and you have another job or income stream coming along straightaway you might want to consult an IFA or another trusted advisor on the best way to deal with your 'windfall'. Could you pay off your mortgage, invest in a business, or create income from investing that might mean that you can consider different career or training opportunities?
• Getting a part-time job, even if it's not at the level you're used to, could be a good way of keeping some money coming in whilst still giving you the flexibility to job hunt and attend interviews.
• You may be eligible for some kind of state benefit - click on to Claiming Benefits to read more about it. It might not be much, but every little helps!
• If you have worries and you want to talk to someone, you could call National Debtline which provides help for anyone in debt or concerned that they may fall into debt - call free on 0808 808 4000, the Citizens Advice Bureau is also an excellent source of help. You can find your nearest branch here.
• Can you save on things that were easy to justify when you were busy out at work. Ready meals? Cleaners? Taxis? Child care?
• Could you find cash in your attic? What could you sell on ebay to raise some cash?
• Are your mortgage, utilities, mobile etc. all with the cheapest providers? You've time to sort them out now. Start shopping around.
• Could you give up smoking or another expense or indulgence that you've been meaning to stop anyway?
• Could you stop using your credit cards and use cash instead? Setting yourself weekly budgets for e.g. groceries and only spending if you have enough cash is a very simple way to focus your mind on how much things cost and whether you actually need them or not.
• The New Life Handbook "Rebuilding your life after redundancy" also has a full feature on this topic - you can order it for just £10.99 plus p&p here .

newlifenetwork.co.uk_household_cash_flow_2009.xls - 36kb Download this file

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