Losing a job can take a toll on the best of us. But with the right planning and a bit of creativity, you can cushion the financial fall so you get back on your feet in no time.
Financial advisor Lisa Dudson told Duncan Garner that the first thing to do it “take stock” of your situation.
If someone has just lost a job, she recommends sorting which expenses are fixed (like rent) and which are considered non-essential (like dining out or clothes).
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“The sooner you do that, the better off you’re gonna be,” she told RadioLIVE.
Should the person remain unemployed for longer than a month, she advises to cut out or suspend any non-essential costs.
Using the credit card for rent should be the absolute last resort, she said.
Ms Dodson explained that setting aside an emergency fund of 3-6 months of your regular expenditure is highly recommended.
So if you’re monthly expenses around $2000-$3000 per month, shoot to put aside $10,000 to $15,000 in your emergency fund.
Watch the video above for the full interview with Lisa Dudson.
The AM Show with Duncan Garner, Amanda Gillies and Mark Richardson, weekdays 6-9am on RadioLIVE and streaming live to the rova app on Android and iPhone.