See Ways to save money after losing a job

Ali earned a seven figure salary for years until he recently lost his job. His former employers hit financial trouble and had to downsize employees to ensure the company does not go bust. To compensate Ali, the company paid him severance package that was equal to his one year annual salary. He reckons it might take him six months to one year to get a new job and does not want to run out of cash before then, let alone see his severance vanish. His options are limited to spending wisely and investing cautiously lest he faces the consequences of losing not just a job but his savings.

Remaining financially viable after losing a job and before getting another is not very easy. However, with determination, one can achieve this. Whilst there is no one size fits all approach to responding, I believe applying the following ideas can help prepare you or anyone you might know who is in this situation.

Change feeding habits

Having a job requires that you sometimes engage in excessive feeding habits that cost you money. You often dine out more and eat at expensive restaurants. You also stock your house with groceries you actually need and those you also actually don’t need. Not having a job brings you back to earth and you realise you only spend money on things you absolutely need. Start stocking your house with the basic food items. Eat more of the food you prepare at home and avoid dining out as much as you can. Reduce consumption of expensive wine, alcohol or beverages.

Adjust transport needs

Losing a job means you probably spend more time going out as you seek another job or source of income. However, this can be quite expensive considering the fuel and maintenance cost for those who have a car and cost of public transport for those who don’t. Therefore, you must make sure every commute you make is essential and not frivolous. Go out if it is absolutely necessary that you do. Some people have this erroneous belief that going out actually helps you meet people without realising that the chances of getting a job at a bar is as slim as lightning striking twice on the same spot.

Get health insurance

Most Nigerian jobs come with some form of health insurance or another, therefore losing the job means losing health insurance at some point. It is therefore essential that you take some of that severance and buy health insurance for you and your immediate family. That way everyone gets covered when they fall sick by getting medical care. You should also try to stay healthy and avoid doing things that keep your health in jeopardy.

Quit expensive bad habits

We all have bad habits that are difficult to contain. However, when you find yourself in a critical situation it is important to just simply quit. Expensive habits such as but not limited to drinking, partying, fashion wears, etc have to be curtailed significantly if you are to remain above water. Most people get depressed after losing their jobs because they either feel pained they can’t afford the niceties they were used to or end up spending their savings living a false life.

Stick to a budget

One of the key ingredients of frugal living is keeping a decent workable budget. It becomes even more important to stick to a budget when you are out of employment. A well planned budget is a very good starting point and should reflect the current state of affairs. Remember, the income side of the budget will mostly be limited and not enough to fund the expenses leaving the budget with a deficit.

Don’t be afraid to accept money

Family and friends can offer financial or moral support at times like this and should be accepted with all appreciation. Some people view help and support as an insult and will reject it, however I do believe any help you can get is very vital to your ability to bounce back. Some can offer you indirect financial support which does not even direct cash.

Re-negotiate deals and rates

For those who lose their jobs and still have agreements such as loans, mortgages, rent etc. losing your job can put some of these arrangements at risk. Rather than default on mortgages and loans you can approach your lenders to renegotiate the terms ahead of the next installment payments. Write them officially and tell them of your present status and request for a restructuring of the debt to enable ease of payment. You can also inform your landlord of your current situation which inadvertently is telling them ahead of time not to increase the rent.

Register with a job site or service


This is perhaps the first thing you must do as the longer you stay out of work the longer it takes to get another. One way to remain in the loop is registering with a job website that can give you regular updates on job openings that suit your career prospects and profession. The more interviews you attend the higher your chances of getting a new job and surely the more money you save down the line