Managing Your Finances
​Index
1. Aim to take control
2. Taking stock of your financial situation
3. Understand what support you're entitled to
4. Cut back on non-essential spending
5. Talk to friends & family
6. Avoid taking on new debt
7. Focus on your wellbeing
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1. Aim to take control
Redundancy can be an overwhelming experience, both emotionally and financially. Managing your finances after redundancy can feel daunting, but by taking a clear and practical approach, you can navigate this period effectively. Start by understanding your financial position, cutting back on non-essentials, prioritising key payments, and exploring available support. It's important to organise yourself at this time, so you can search for that next opportunity without worrying too much about your finances.
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Remember, redundancy is often temporary, and this period can be an opportunity to reflect, regroup, and refocus. By staying proactive, organised, and positive, you can regain financial control and set yourself up for future success.​
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2. Taking stock of your financial situation
The first step is to get a clear understanding of your financial position. Knowing exactly where you stand will help you make informed decisions and reduce stress.
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Calculate your redundancy pay: If you’re entitled to statutory or contractual redundancy pay, work out the exact amount you’ll receive and when you’ll get it. Factor in tax deductions if applicable, so you have an accurate figure to plan with.
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Assess your savings: Look at any savings you have – such as emergency funds, ISAs, or accessible accounts – and determine how long they can cover your essential outgoings.
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List your debts: Identify any loans, credit card balances, or mortgage repayments. Prioritise what needs to be paid and whether you can consolidate or reduce payments during this period.
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Create a budget: List all your income (e.g., redundancy pay, savings, benefits) and outgoings (e.g., rent/mortgage, utilities, food, insurance). Cut out non-essential expenses and focus on necessities for the time being.
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3. Understand what support you’re entitled to
When you’re made redundant, you may be eligible for financial support. Explore your options to help ease the financial strain.
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Check your eligibility for benefits: You may be entitled to Universal Credit, Jobseeker’s Allowance, or other benefits depending on your circumstances. Visit the government website or speak to a job centre for guidance.
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Look into payment holidays: Some mortgage lenders, banks, and utility providers may offer payment holidays or flexible options if you’ve been made redundant. Contact them early to discuss your situation.
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Redundancy advice services: Organisations such as Citizens Advice or National Debtline offer free and impartial advice to help you navigate redundancy and manage your finances effectively.
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Don’t hesitate to seek advice – understanding your entitlements can make a significant difference.
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4. Cut back on non-essential spending
During this period, your financial focus should be on covering the essentials. Review your spending habits and identify areas where you can cut back.
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Subscriptions and Memberships: Cancel or pause services like streaming platforms, gym memberships, or magazines.
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Dining out and takeaways: Replace meals out with home cooking and meal planning to reduce food costs.
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Non-essential shopping: Postpone buying new clothes, gadgets, or luxury items until your situation stabilises.
It’s not about depriving yourself but making mindful choices to stretch your resources.
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If you’re facing financial difficulties, focus on paying your essential bills first. These include:​
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Mortgage or rent: Keeping a roof over your head is the top priority. Speak to your landlord or mortgage provider if you’re struggling to make payments.
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Utilities: Gas, electricity, water, and council tax should remain priorities.
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Food and transport: Budget carefully for groceries and any travel expenses essential for job hunting or attending interviews.
If you find yourself unable to meet payments, contact your providers immediately. Many companies are willing to work with you to arrange alternative payment plans.
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5. Talk to friends & family
Being open about your situation with family and friends can reduce emotional strain and even provide practical support.
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Share your situation: If you have a partner or dependents, discuss your budget and how everyone can help reduce expenses.
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Seek support from friends: Your network can offer leads for jobs, financial advice, or emotional encouragement during this time.
Redundancy can feel isolating, but you are not alone. Surrounding yourself with a supportive network will make the process easier. (See Coping With Change resource).
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6. Avoid taking on new debt
While it might be tempting to rely on credit cards or loans, this can lead to greater financial pressure down the line. Instead:
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Use savings wisely: Prioritise your savings for essential expenses.
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Speak to creditors: If you’re struggling to repay existing debts, contact your creditors to discuss options.
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Avoid high-interest borrowing: Payday loans or credit cards with high interest can quickly become unmanageable.
If you’re unsure how to manage debts, seek advice from reputable organisations such as StepChange or Citizens Advice.
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7. Focus on your wellbeing
Financial pressures following redundancy can take a toll on your mental health. Prioritise your wellbeing to maintain a positive outlook:
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Stay active: Regular exercise helps reduce stress and keeps you energised.
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Stick to a routine: Structure your days to include time for job searching, self-care, and rest.
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Speak to someone: If you’re struggling emotionally, talk to friends, family, or professionals.
Your mindset is just as important as your financial management during this period. Keeping a positive outlook will help you move forward with confidence.
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* Please note that none of the commentary above should be considered as financial advice, they are just pointers for you to consider.
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