Life happens all the time, no matter what we have foreseen or planned. Unfortunately, one of the ways life can happen is losing your job.
Being in between jobs is a terrifying stressful experience, especially when it comes to managing your finances throughout the transition period.
The time between employment, often known as the “money gap,” can put a strain on your finances. Fortunately, there are strategies to aid you in navigating this challenging phase, and reliable money lenders in Singapore can provide critical assistance when needed.
Keeping Track Your Financial Situation
The world is not as small as a Moringa leaf. Don’t panic. Take a deep breath. Start to assess your financial situation. While not in employment, the first thing you should do is examine your present financial condition.
Estimate your available savings, including any emergency funds. Next, evaluate your monthly expenses by distinguishing between essential and non-essential costs. Identify potential sources of income during this period, such as unemployment benefits or severance packages.
Make a precise budget that includes all of your necessary expenses, such as rent or mortgage, utilities, groceries, and insurance fees. Determine the bare minimum required to meet these costs and deploy your resources accordingly. Also, cut g back on non-essential spending to extend your funds.
Assume you’ve recently lost your job and have $15,000 in savings. Keep a careful record of your monthly expenses, which include rent or mortgage, utilities, groceries, transportation, insurance premiums, and loan payments. Let’s say this is about $3,000 every month.
With $3,000 in monthly expenses and no income, your budget gap is $3,000 per month. You distinguish between necessary spending, such as housing and utilities, and non-essential expenses, such as dining out or entertainment.
You are aware that the government is still fine-tuning a new scheme to provide temporary financial aid for retrenched workers while you are needing it right now.
Taking this into consideration, allocate your available funds to cover essential expenses first to ensure that your housing, utilities, groceries, and insurance premiums are paid. Also, cut back on subscription services or discretionary purchases to stretch your available funds even further.
Whether you receive unemployment benefits or not, the emphasis in this case is in carefully handling your existing resources and making required budget adjustments to weather this period of job loss. Planning and prioritising necessary expenses are critical to be financially stable during this difficult period.
Explore Short-Term Income Sources
Making money between jobs is essential so that you may continue to pay for necessary expenses.
Consider doing temporary or freelance work to supplement your income during this time. Many businesses have short-term job opportunities that can help you bridge the financial gap until you find a full-time job.
Taking advantage of these possibilities to build and improve your professional abilities can make you more marketable to prospective employers. As a freelancer, it can take time to create a portfolio and client base.
Making money between jobs also allows you to fill up work gaps on your resume. This will make potential employers whom you are currently applying to see that you are innovative, hardworking, and creative.
Practicality aside, it’s also a trendy thing to do. In fact, there is an entire kind of work that is now known as the gig economy. Gig jobs, often known as “gigs,” are a sort of employment arrangement in which individuals work on a temporary, flexible, or freelance basis and have the flexibility to select when and where they work, making them ideal for those who prefer non-traditional work schedules.
Jobs in the gig economy range from ride-sharing and food delivery services (such as Uber, Lyft, and DoorDash) to freelance writing, graphic design, web development, and consulting.
Many tasks are available on freelancing platforms such as Fiverr and Upwork, which allow you to work from home. Alternatively, you can promote your services through social media and local event-planning websites. For example, if you enjoy writing, sign up on Upwork for freelancing platforms and offer your writing abilities to clients looking for blog posts, articles, and website content. Take on writing tasks as they come in and get extra money on a project-by-project basis.
On the other hand, if you have a talent for photography, take advantage of this chance by providing photography services on weekends for occasions such as weddings and parties.
Gig jobs let you indulge in your passions. And if you have more than one, that’s great. For example, you can make yourself busy by dividing your weekdays to be a freelance content writer, while you can use your passion for photography to create the best portfolio.
Tap into Emergency Funds and Savings
If you are between jobs and have an emergency fund, now is the time to use it. Emergency reserves are intended to cover these unexpected financial losses. Using this fund can assist in covering necessary bills and reducing financial stress.
But before using the emergency funds you have saved, you have to assess your financial situation again, prioritise mandatory monthly expenses, and eliminate unnecessary expenses.
You also have to calculate the amount of emergency funds, mandatory monthly expenses, and estimates that you will be unemployed while looking for work.
So, when you decide to withdraw from your emergency fund every month to cover important expenses, the tight budget you’ve created won’t go to waste.
Once you get a new job, you can immediately start replenishing your emergency fund by allocating part of your income to savings.
Reliable Money Lenders in Singapore
Reliable money lenders in Singapore provide a variety of financial alternatives to help bridge the financial gap during job transitions. Personal loans and payday loans can provide fast access to funds to address unexpected expenses. These loans, which frequently have flexible payback terms, can be a significant resource when used appropriately.
When looking for a personal loan in Singapore, make sure you choose a licensed and trustworthy money lender. To make an informed selection, check their credentials with the Ministry of Law and carefully analyse the loan terms and interest rates.
Be Wise and Survive Being In Between Jobs
Being between jobs might be financially difficult, but with smart planning and resource management, you can get by while looking for your next professional opportunity. Examine your financial status, look into short-term income sources, use emergency funds, and consider reliable money lenders in Singapore as a possible resource.
Lastly, consulting with a professional financial advisor can provide additional direction and support during this period. Their advice can help you confidently get through this money gap wisely, and remain financially stable while reaching for the next chapter in your career.