How will redundancy affect you?
With the recent news headline, ‘WA unemployment rate hits 13-year high’, it has definitely put the pressure of job loss front of mind for many Australian workers, going into the new year.
The current slump in the economic growth and the end of the mining boom in Western Australia, has also contributed to the hike in the unemployment rate. If you are one of the thousands who have been made redundant, either on a forced or voluntary basis, it can be quite confronting. However, there are a few tools that may help you cope with the traumatising times of redundancy.
Take some time to let the emotions ride their course.
Being made redundant can be traumatic for some and relaxing for others. Whatever emotions you are going through, allow them to ride their course. Suppressing your feelings may lead to a more stressful future and may affect your mental health. Speak to your GP or a counsellor whenever you feel overwhelmed. Asking for help is not a sign of weakness, it shows a healthy person dealing with issues.
Check your entitlements.
Financial Planners’ Association spokesperson, David Strybosh, says that the first step when made redundant is to find out what are your entitlements. “The first thing we do is encourage clients to look at their entitlements,” Mr Strybosh says. “Normally you can’t have your benefits go into superannuation but there are certain clients with older contracts that can.”
If your workplace is offering out-placement services, take advantage of them. It can help you with your resume and provide access to resources and information that you’d otherwise have to find on your own.
Determine if you qualify for any Centrelink benefits.
If you or your spouse is made redundant and you have children to care for, you may qualify for the Family Tax benefit A & B and Childcare benefit. Some people who have recently been made redundant feel that they do not need help from Centrelink, due to the lump sum they have received from their redundancy payment. However, without proper budgeting, the money will dwindle quickly. Think of Centrelink benefits as a short term helping hand, remember you can stop receiving these payments once you or your spouse return to work.
On the Centrelink website, you can find a calculator to help you determine the benefits you are entitled to, and how much you would receive. These extra benefit payments may help with reducing the stress you are both currently going through.
Limit spending.
Depending on the terms and conditions of your redundancy, you may receive a decent pay out. Many people would plan a new holiday, buy a new car or upgrade their home. However, it is wise to remember that the money is not going to last forever and it is a time to practice financial restraint and common sense.
With the high unemployment rate, you can’t be sure how long it will take before you are back in the workforce. Cutting down on spending can help stretch the dollar a little further. Identify what you can live without and swap them for a cheaper alternative. Maybe you could have a coffee at home instead of buying from the café, that way can save you hundreds of dollars each year.
Diversify skill sets.
You don’t have to do what you have always done. You may have a diverse skill base. Think about how your skills might be used in a different way. If you were thinking about completing your studies or learning a new skill, this may be a perfect time to fulfil those goals. You may even find that you have new skills that you can offer and add to the resume, which may help in getting that new job.
Set a financial plan.
This is probably a good time to consult with a financial planner, to determine how best to utilise the redundancy payment. The team at Finance Detective are here to help you get back in control. We have a highly skilled and extremely friendly team who will evaluate your current situation, and work with you to manage every step of the process.
Call us today on 08 9289 7777 to find out how we can help with life after redundancy.