Experiencing sudden unemployment can be traumatic for anyone. Retrenchment happens for many reasons, for instance, when your employer’s company is performing poorly or during bad economic times or for reasons more specific to the individual concerned. In such a situation, having some emergency funding can come in handy as it will help you cope during the time of being without a job. In spite of whether you’ve got some emergency money to keep you going or not, below are a number of ideas that will help you throughout this period:
To get you started you may consider drawing up a working budget for all the necessary expenses. Once done, be sure to follow it to help you to better deal with where your funds are going. Make sure you remove all the unnecessary spending such as taking taxis and even eating out at restaurants. And above all be ready to adjust your current lifestyle.
It could be rather hard to predict how long the unemployment period could last. When it seems as though it may possibly take a long time, then it may be time for you to make new drastic changes.
In the process, when you realize that the costs of making the car loan monthly instalments as well as maintaining your car are draining the savings that could be used in meeting your living requirements. It may be the time for you to look at if there are possible penalties and costs when you cash in on your car loan. When you realize that the proceeds you will get from selling the car may turn out to be inadequate to cover the car loan. Be sure to ask your licensed money lender singapore for the other personal loans options may be for you.
It is important that you consider reprioritizing your financial goals as well. When you find yourself having to decide between putting aside some funds in savings to help pay for the children’s further schooling in full, and saving some amount for your retirement. Do not forget that your kids have the opportunity to apply for study loans. Therefore, consider carefully on what is important and the alternatives available for you in Singapore.
Another thing that you may have to keep in mind is to stop making use of credit facilities that can often time incur high-interest costs. These costs tend to get inflated when you are not able to continue with the prompt monthly repayments. Also, try to continue being in control of all your monthly debt repayments. For you to be able to do so with ease, you will find that you have to reorganize some of your existing debts. For this, you will need to visit your moneylenders immediately to work this out for you. When you are in need of more help, you can visit the Singaporean Credit Counseling for further assistance in finding useful ways for managing your debt.
When you hold some life insurance policies, you could consider asking the financial consultant representative about the possible choices that you have. With these policies, you could be possible for you to take out a personal loan or even a premium holiday against your existing policy’s cash value (when you possess one). This amount realized from this can pay up for the premiums to help keep your policies in force, though interests may be charged. You will also need to realize that these are short-term features and you need not depend on this option for an extended time period.
Be sure to ask the financial adviser whether you could convert the policy to a wholly paid-up policy or decrease the assured amount. Given that you do not consider taking up these alternatives and even stop paying your premiums, it possibly will lead to the termination of the insurance coverage. However, when you later apply for coverage, you possibly will be required to pay more money for premiums, or even not be eligible based on your physical condition.
Another important pointer you need to bear in mind is to analyze all your investments to pinpoint those that can easily be liquidated without attracting a penalty or costs too much when you are in need of some funding. When you are not prepared to lose any money, now might be the best time for you to liquidate all riskier assets.
Although some of these actions may seem hard at first glance, they can, however, help you manage your funds during this tough time.
Once you have found new employment again, also make sure that you follow your priority of rebuilding your emergency cash savings. At all times, aim at keeping 3-6 months worth of your monthly expenses in savings continuously.
Assistance from The Singaporean Government
Most of the Singaporeans might not have any existing cash savings and even assets to help them cope during this tough period. When you are in need of help and support, you could approach Singapore’s Community Development Councils (CDC) for some of their services.
Assistance To Find Employment Placement
The Singaporean Councils for Community Development will gladly assist you with the career needs that will include assessment, career profiling, job-matching to facilitate you in finding suitable jobs as well as training opportunities.
Approach Legal Moneylenders
When comes to paying bills, don’t let them pile up. If needed, try to negotiate for a lower monthly repayment or consider taking up a cash loan to tide this difficult period over.