Plan your finances
One of the most important things you can do when you’ve been made redundant is to manage your finances while you look for another job.
You should begin by listing your income and expenses, including any regular payments, credit cards and loans.
It’s a good idea to contact your bank to let them know if you need to make any changes to your loan repayments. Most financial organisations have provisions for customers experiencing financial hardship.
Most people who issue bills will be able to offer you a payment plan. The earlier you let them know, the more flexible they’re likely to be. Call your energy provider, phone company and other service providers today.
Depending on your circumstances, you will probably need to review:
- your budget
- your regular payments e.g. credit cards, loans and rent/mortgage
- your superannuation.
The moneysmart.gov.au website has a tool to help you create a budget, as well as plenty of hints and tips on how to manage your budget.
You may be entitled to other benefits, such as income support from Centrelink, to get you through until you’ve found a new job. To find out more call 132 850.
If you’re in immediate financial difficulty, the South Australian Financial Counsellors Association can provide you with free independent financial counselling.
Your redundancy payout
If you’ve received a redundancy package, you should seek professional financial advice. Have a chat to your superannuation fund, bank, tax agent or a financial adviser.
While it might be tempting to invest the money or pay a chunk off your mortgage or other loans, you don’t know how long you might be looking for a job. It might make more sense in the short term for your family to structure the payment as income to cover your living expenses until you’re back at work.
If you receive a redundancy payment, you might not be eligible for Centrelink payments right away. If you apply for a payment, your income and assets will be assessed to see if you are eligible. For more information on Centrelink, termination payments, superannuation and tax, call 132 850.