Personal Finance Advice

When the economy is suffering, sudden layoffs can be a brutal blow to people who are already trying their best to stay afloat financially.  Many people find great solace in the fact that even though the economy is in bad shape, at least they still have a job, but when that job suddenly disappears the first inclination may be full-blown panic for the people who find themselves suddenly without a job. 

So what do you do if you suddenly find yourself unexpectedly laid off from your job? The circumstances can vary greatly.  Some people receive their walking papers after ample warning and a generous severance package while other people are completely blindsided by the layoff and don’t even have enough money to buy groceries through the end of the month.  Although there is certainly something to be said about padding up an emergency savings account just in case a job is unexpectedly lost, not everyone has preparations in place when something like this happens. 

Here is what to do when you’re unexpectedly laid off:

1.  Know your rights.  Depending on the circumstances surrounding the layoff, you may be entitled to unemployment benefits and other financial programs that will help you stay financially afloat.  In many cases, unemployment benefits will not immediately kick in, so don’t expect to receive payments right away.

2.  Change your spending habits.  Now is the time to cut way back on your spending and to watch your dollars like a hawk.  You can’t know how long it will take you to get a new job and to get another income rolling in, so the more money you can keep in your wallet right now, the better.

3.  Start looking for another job right away.  This isn’t the time for a vacation.  The longer you wait to find another job, the longer it will take you to get an income coming back into your bank account.  It’s completely natural to react to a sudden layoff by wanting to take a couple of weeks to regroup, but you should actively look for a job as soon as possible.

4.  Network and stay active.  Don’t lose touch with people within your industry because these are the same people who may be able to find you another job.  Some of the best jobs aren’t ever aggressively advertised publicly but instead are filled by people who know other people within the same industry. 

5.  Notify your lenders if things get really tight.  If you have a hard time making ends meet, you need to let your lenders know that you may not be able to meet your full payments.  The sooner you let your lenders know, the better.  If your payment history has always been stellar in the past you may be able to skip a payment without penalty or might have your interest reduced momentarily.  

Suddenly losing your job is not the time to take a vacation.  Your energy should be focused on finding a new job and keeping your personal finances under control until you can start bringing in an income again.

Personal finance doesn’t have to be complicated.  If you keep it as simple as possible you’ll soon realize that the best way to manage your personal finances effectively is to only spend money when you really need to and to save the rest.  You should also spend as little as possible for the best product possible.

One simple step you can take when trying to gain control of your personal finances is to figure out how to avoid paying full price for the things you buy.  Whether it’s clipping coupons or searching through clearance racks, chances are you can save quite a bit of money while still getting the things you need.

If you fall into any of these following categories, ask for a discount when you make a purchase:

Students:  If you’re currently enrolled in school and have a student photo ID card then you can score some really great discounts for things like movie tickets, computer software and apparel.  Some car dealerships offer substantial student discounts. 

Educators:  Teachers in all levels of education can get discounts on a lot of the same things students get discounts on, but there are additional programs for educators that can wind up saving a lot of money.  For example, in some cities, educators are offered special mortgage products for the purchase of a home that are far better than any mortgage loan they would have otherwise found through simple comparison shopping.

Military:  Look for the best military discounts around the holidays paying tribute to the armed forces, such as Veterans Day and Memorial Day.  Military discounts are also common around Independence Day.  Merchants located near military installations commonly offer discounts to military personnel, but merchants in other places sometimes offer these discounts as well.

Seniors:  Senior discounts are everywhere; movie theaters, restaurants and merchants providing services often offer attractive discounts to seniors.  There are so many senior discounts available that some seniors have taken to wearing hats that remind merchants to give them senior discounts.

How do you find these discounts? Look for signs at the entrance of stores or ask the clerk.  Don’t stop at just asking for discounts in the places you shop.  You should also ask about discounts when you make any purchase, whether it’s for merchandise or services or whatever.  You may be surprised to find that so many merchants and service providers offer so many great discounts.

Always ask about potential discounts when making a purchase.  After all, the worst thing that can happen is the merchant doesn’t have a discount available and isn’t willing to give you one.

Many websites offer comparison charts that list all the various credit cards available to consumers with excellent credit.  These credit cards aren’t available to everyone, and usually only applicants with the very best credit scores qualify for these attractive credit products.  So does this mean that if you have an excellent credit rating that the best way to find a fantastic credit card is to select the top product on a comparison website? Is it really so easy to get the best credit card this way?

Comparison websites should be used as a resource tool.  Whether or not you actually apply for a credit card listed on the site should be based on additional information, such as information you receive from checking the official website of the credit card issuer or instead calling the lender directly.  After all, you can’t be absolutely sure that the information listed on the comparison website is accurate for a few reasons:

1.  The information may have been accurate at one point, but then the terms and conditions were changed by the lender but not updated by the website.

2.  The information might have been written in error.

3.  The information may have been completely false from the very beginning.  After all, it doesn’t take much to pull together a website, so anyone who is familiar with web design can build a comparison website full of false information; maybe they do this just to see if they can, or maybe they do it in an attempt to grab personal financial information from people…either way, it’s easy to be fooled by fake websites.

Does this mean you should avoid comparison websites altogether? Absolutely not.  Credit card comparison websites can reveal some great cards that you may not have been aware of, and getting a low interest rate with attractive terms can save you quite a bit of money in the long run (especially if you carry a credit card balance from month to month).  The trick is to find a comparison website you can trust, and then use the information you find there as a starting point in your search for the best credit card.   

If you find a credit card that appeals to you, contact the company directly to request a full copy of the terms and conditions of the credit card.  You may be able to find this information on the company’s website.  Unless you know the comparison website is trustworthy, you should apply directly through the potential lender instead of inputting your personal financial information using a tool on the comparison website because you can’t be sure that the website isn’t attempting a phishing scam.

If you’re interested in viewing a credit card comparison website through a trusted source, check out the Banks.com credit card comparison site.