THERE ARE various reasons why people are made redundant, for instance, a company may have merged with another, or the company may simply need to reduce its operating costs. Whatever the reason, being made redundant can be an extremely distressing experience in one's career. While it happens at times to many people, fortunately, some of them are able to go on to a more challenging and better-paying job. If you feel you may be made redundant in the near future, there are certain things you can consider while you're still employed to better prepare you for whatever may happen.
THINK LOGICALLY
It may be difficult, but it is advisable that you do not take being made redundant personally. If taken personally, you may be led into a spiral of despair, when you should in fact be generating constructive energy into finding another job, hopefully a better position than the one you previously held. Think logically and put the situation into perspective and plan your next course of action; getting employed.
If you have been made or may become redundant, a good word of caution is to postpone major purchases wherever possible until your job position is clear.
SAFETY NETS
If you are employed and know that redundancy could happen to you, now may be the best time to consider your saving and investment options. Allocate a portion of your salary each month to these areas, as that will be your safety net in such a crisis. Financial service companies will be able to offer you short-term investments that will allow you easy access to your money, whenever needed. At the same time, you will be able to benefit from a higher rate of return, than if you were saving for a rainy day in a traditional savings account.
You could also consider the possibility of starting your own business. Get the plan together and save towards the initial capital. This way you may be able to provide a source of employment for yourself, if you are made redundant. You could also invest the profits of your business, to build your net worth and expand your safety net.
MAXIMISE YOUR REDUNDANCY PAYMENT
Depending on how long you worked with your organisation, this payment may usually be a large sum of money, and at the time, may seem like a significant amount. However, in reality, it may not always be enough to sustain you until you're able to find another job. Therefore, it is advisable to plan the way in which you allocate this lump sum. One option is for you to invest a portion of it in a low risk investment. Then, prioritise your debt to see the best approach you can take for payments, considering your position. You may find it necessary to approach your creditors and explain your situation to them, and see if an alternate arrangement for payment could be made, for instance, extending the payment period, until you are in a more financially stable position.
Being made redundant is not the end of the world. There may be better opportunities waiting for you out there, so you just have to remain focused and seek them. Get your safety net in order, budget wisely, and seek the help of financial advisors, for advice on how to allocate your redundancy payment.
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