Redundancy can be one of the most stressful things that can happen in life, as you lose the security of a regular job and income.
Redundancies often mean a redundancy payout, which can be one of the largest sums of money you’ll receive all at once. If you are receiving a payout as part of your redundancy, there are important decisions to be made about how best to manage your money, now and in the future.
Here are some helpful tips for getting through a redundancy and emerging confidently on the other side.
1. Plan and time management
It’s important to use the time after a redundancy wisely and set yourself a budget so you can keep track of all of your expenses. Determine which expenses you need to pay each week (such as home loan repayments or fuel) and calculate how much money you’ll have leftover for food and entertainment. Our budget planner is a good place to start organising your budget if you’re in need of some help.
While a lot of people begin searching for work as soon as they are made redundant, it is important to know that it’s also fine to take your redundancy as an opportunity to rest and recover from what probably has been a stressful time. Beyond Blue recommend maintaining your regular routines for getting up, eating and exercising as this will not only benefit your body but will also boost your mental wellbeing.
Remember: it’s important to think long-term and resource yourself appropriately, so that you can manage your day to day schedule even if you’re out of work for a while.
2. Refine your resume
If you’re ready to begin searching for work, one important step you’ll need to take is updating your resume and online profiles such as your LinkedIn and SEEK. This is a quick and simple way to ensure your profile has updated experience and will let recruiters know that you’re open to job opportunities.
If it’s been a while since you changed careers, you may want to spend some time searching the job market and researching new opportunities.
Here are some helpful sites to get you started:
- Research job statistics via the Australian Jobs Report
- Browse Seek and LinkedIn
- Explore different careers via Job Outlook
3. Focus on your skills – not a job title
The skills you’ve previously acquired may be perfect for another career path. For example, if you worked in admin, logistics, or human resources there’s nothing stopping you from pursuing the same type of role in another industry.
Not every job requires a specific degree or qualification. However, if a qualification is required for a new role you may be able to receive help with the cost of retraining. See the redundancy section on the Department of Human Services website for more information.
4. Speak with a financial advisor
Speaking with a financial planner can help you understand the financial considerations around redundancies so that you’re best placed to take the next steps.
They can help you…
- Assess your position and financial commitments
- Explain how it may affect your superannuation
- Identify any government assistance
- Plan the way forward
At the end of the day, it’s important to recognise that redundancies will impact your life in a number of ways. While it will probably be a stressful time, having a plan in place will help you stay positive and ensure you emerge confidently on the other side.
As a MOVE Bank member, you’re invited to meet with Bridges, our financial planning partner, for a no obligation, complimentary session.
This blog post is for general information purposes only and is not intended as financial or professional advice. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product or other professional advice. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article. Railways Credit Union Limited trading as MOVE Bank ABN 91 087 651 090. AFSL/ Australian Credit License number 234 536 | ABN 91 087 651. Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL No 240837. In referring members to Bridges, MOVE Bank does not accept liability or responsibility for any act or omission or advice provided by Bridges or its Authorised Representatives. Bridges is part of the IOOF group.