Losing or leaving a job can be very scary. Until you find that next position, you have to manage your financial situation very carefully. Use these tips to ensure you can make it until that first paycheck of your new job.
Calculate your burn rate
This is the scariest thing you’re going to have to do, and it will be horrifying. Bear with it, because it has to be done. Your burn rate is the rate at which you burn through cash, and it will show you when you’re likely to run out of money. First, calculate your current rate. Include everything – rent or mortgage, bills, food, shopping, subscriptions, and so on. Then see if there is somewhere to cut it down. Calculate how long you can make your current finances last again with the lowered burn rate. You’ll be impressed at how much longer you can stick it out if you cut out the luxuries.
Join the sharing economy
There are a lot of ways you can make money by sharing your skills or possessions while you’re in need of extra cash. Become an Uber or Lyft driver so you can earn money with your car. Rent out your garage as storage space, or let people stay in your spare room through Airbnb. If you have a DSLR, a bicycle, or any other kind of specialised equipment, you can also rent that out. Don’t let money pass you by: these things sitting in your house could be earning their keep.
Even if you only have a little money to spare, you might be able to grow it into more money by investing. You can learn to trade online, and start bringing in a bit more income. If you’re really talented at it, you might end up sticking with this as your full-time job rather than taking another one. If you’re just average, then you can keep it as something that earns you extra money on the side from small investments.
Apply on the go
Make sure you’re able to apply to jobs as and when they appear. Get an app on your phone that will allow you to apply every day. Treat applying for jobs as if it is a job – because for you, it is now. Take a 9 to 5 mentality and search for as long as you can. Your money will go a lot further if you don’t have to wait long for your next wage payment. Don’t waste money on paid apps – so many services out there offer what you need for free. You can also look for temporary and freelance jobs that will tide you over until you find the real thing.
Don’t be proud
Lastly, if you are really struggling, don’t be too proud to ask for help. Especially if you have a family, getting by is more important. Parents, siblings, and even close friends might be able to give you a short-term loan that you can pay back. You may also be eligible to sign on for benefits as a job seeker. If this is the case, you should take the money – pride won’t put food on the table!
Don’t let pride stop you from taking odd jobs here and there which will keep your finances going, either. Even if you wouldn’t have taken them before, you can do so now because you are in need.
Don’t panic about your financial situation. You can manage until you get a new job if you use these tips. They will string your existing funds out for longer and help you to survive.