We’re advised to always account for life’s unpredictable aspects – this is the reason why having a savings fund for 3-6 months of living expenses is highly recommended. But, what about when you’re hit with unpredictable job loss? There are innumerable reasons for such circumstances, like being part of a group redundancy or facing a family health crisis.
This is a scenario we found ourselves in recently when my husband fractured his spine while playing soccer. His job as an ambulance operator, which requires significant physical strength, has had to be paused for a considerable time. We anticipate that he’ll need at least four weeks off work.
His part-time employment status means a lack of benefits. Although my health insurance covers him, no work unfortunately translates to no income. He has neither sick leave nor vacation to fall back on.
We have previously managed with a single income back in the Fall of 2011, when my husband joined a fire academy as a full-time student for four months. For that situation, we had a considerable eight months to financially prepare. Our current situation caught us off guard, particularly because we had just relocated and most of our savings went toward our new home’s deposit.
We found ourselves facing a challenging question: How do we handle unexpected job loss?
Pruning non-essentials
We switched gears into survival mode, focusing only on our fundamental monthly expenses – rent, utilities, and bills. We also cut down our food budget, avoiding costly items such as cheese and red meat, while striving to use up what we already have stocked up.
Mindful Paycheck Allocation
My income manages to cover our basic bills, although it does stretch thin. I realize, however, that many people might not be in a similar situation. I was fortunate enough to receive overtime pay recently and we utilized any extra money to help us manage until the following month. We also saved the final paycheck my husband received. Anticipating that a majority of our bills are due at the month’s end, we plan to make this amount last until then.
Exploring Additional Income
Injury is, unfortunately, limiting my husband’s work opportunities. He has, however, considered some freelance work that can be done from home. His employer is also exploring “light duty” tasks to facilitate his earlier work return.
On my part, my employer was able to provide me with opportunities for overtime shifts. I immediately availed these to help bridge our financial gap.
Any unfamiliar circumstance can invoke immediate panic. Allow yourself to feel the initial wave of panic but remember to then gather your bearings and devise a plan. Everything, eventually, falls into place.
