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10 financial steps to take the minute you lose (or quit) your job

(FINANCE) If you quit your job or get laid off, money can be a tremendous stressor. Here are some ways you can immediately take control.

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financial steps when laid off

Quitting or losing your job?

Whether you saw it coming or not, being laid off is always a bit of a shock. And even after months of consideration, quitting your job can leave you wondering what comes next, and how you’ll stay afloat until that next thing actually comes along.

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Traditional advice emphasizes dipping into savings, but for many Americans, that’s just not an option.

What do you do when you barely have a month’s worth of expenses, if that, and your career is in transition?

Do these ten things and feel calmer, more confident, and ready to conquer that job search with everything you’ve got.

10 things to do right away

(1) What do you have? Checking and savings accounts are an obvious place to start, but don’t neglect stocks, bonds, 401(k)s, and even the cash you have lying around. Depending on how you manage them, credit card points could be a small boon. Liquidate them for groceries, or cash them in to cover moving expenses if your situation is dire. Don’t forget to take into account any debts you owe, through your credit cards, student loans, or otherwise.

(2) What could you get? If you were laid off, you may be eligible for a severance package from your former employer, and this might be something you can negotiate. Don’t sell yourself short here. Being laid off also grants you access to unemployment benefits, and it could only hurt you to wait to apply. It only takes about an hour, and you can expect to hear back in about a week. Expect to receive a maximum of about half your former salary, and in some states you’ll need to fill out a weekly form to prove you’re actively looking for work.

(3) What could you get if you really, truly had no other options? I’m talking credit, and should definitely be your last resort. Nonetheless, it can be reassuring to know what could be there for you if you needed it, and if you inform yourself now about the various interest rates and other terms, you’ll be able to make smarter decisions down the line.

(4) How do you spend? This is going to take some time, but it’ll be worth it. Look at bank statements and credit card statements from the past two or three months to figure out how you’ve been spending your money lately. Keep track of predictable recurring payments like gym memberships and car payments, as well as more variable bills like electricity and water. If you haven’t moved recently, you could even check out utility bills from last year that correspond to the upcoming months, to get a more accurate estimate of what’s in front of you.

After rent and bills, create categories for your spending. You could simply use “Transportation,” “Food,” and “Entertainment,” or you could get more specific: “Transportation,” “Groceries,” “Restaurants,” “Movies,” and “Bars” might cover most things, and you could throw in a “Misc” for good measure. Do what makes sense for you – just be sure you get it all.

(5) How will you spend? Don’t forget expenses you may need to pay now that you’re unemployed. If you got insurance through your employer, you’ll need to find your own coverage. Same goes for gym memberships, public transit passes, etc.

(6) What can you cut? Now you know exactly how much you have, and how much you *want* to have for normal monthly expenditures. But since you don’t have your regular income anymore, unless you’ve been miraculously good at saving, you’re going to need to cut back. It’s important, though, to not cut out every little thing that makes life worth living. Sitting in a cold, dark room eating ramen and drinking tepid water isn’t going to get you fired up for a job search.

Do you actually use and need Netflix, HBO Now, and Hulu to be happy? Pause one or two until you’re back on your feet. Could you run on a trail instead of a treadmill? Could you improve your cooking skills and only eat out occasionally? You have more time on your hands – put it to good use and save some dough.

We recommend checking out Truebill which will find, track, and help you cancel subscriptions (some you won’t even remember you are paying for).

(7) Make a comprehensive budget. After you’ve gotten a handle on your assets and your expenses, plan out a monthly budget for the next six months or so. This is how much you can spend in each category every month, and it should have a little wiggle room for random fun so your soul doesn’t die. If you’re thinking, “There’s no way I have enough money to survive for six months,” don’t worry. Help is coming your way.

(8) Pay attention to your groceries. Do you have a tendency to buy a bunch of stuff that sounds good but that you’ll never cook, or that can’t possibly be combined to make an edible meal? Fix that by planning out your meals in advance and buying what you need for those meals. Limiting the number of trips to the store can also reduce random purchases.

(9) Get a job-related gig. Finding a part-time job of some sort ensures a steady stream of income and enough time to dedicate to your real job – job searching. Were you a copywriter? There are a million freelance copywriting gigs with your name on them. Teacher? Try tutoring. If you can find a gig that falls under your career umbrella, it’ll be worth putting on a resume and you won’t have to explain away an awkward gap.

(10) Get a random gig. Although not ideal, the gig economy has officially arrived, and it means you’ve got options. If your career doesn’t lend itself to part-time gigs, or if you’re ready for a break from your usual job description, consider taking on a different role. Drive for Uber or Lyft (or any number of smaller rideshare companies), deliver with Favor or Postmates – check out the services available in your area, and look at community-based job and gig posting boards like Craigslist for time filling gigs.

This too shall pass

You might get paid to fill out surveys, or be a movie extra, or hand out flyers. As long as it isn’t something that makes you so miserable you have no willpower or time left for writing cover letters, any paying gig could be worth checking out.

If you follow these ten steps, you should feel in control and ready to conduct a calm and thoughtful job search, instead of sending out resumes in a panic and accepting the first offer that comes along. Your next job should be an improvement on the last, and financial security will allow you to focus on finding the right fit.

#Finances

Staff Writer, Natalie Bradford earned her B.A. in English from Cornell University and spends a lot of time convincing herself not to bake MORE brownies. She enjoys cats, cocktails, and good films - preferably together. She is currently working on a collection of short stories.

Business Finance

Bankruptcy doesn’t mean what it used to; no longer the end

(FINANCE NEWS) With the way the world works now, bankruptcy doesn’t necessarily mean game over.

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bankruptcy highest paying internships money

When it’s over, it’s over. Perhaps you heard your best friend utter this phrase after a bad break-up. It’s true, most things that end, end for good. Except in this case, when it comes to the retail business.

We have seen a record number of retailers declare bankruptcy this year. Beloved teen retailers like Wet Seal have closed down their stores and malls have become ghost towns.

Reuters estimates that nineteen major retail chains have already shut down for good. While you may not miss the tight, neon dresses sold at Bebe, closures of all of these retailers result in a tremendous loss of jobs.

And it is not only job losses from the store in your hometown, often it is hundreds of locations across the nation.

For most of these retailers, bankruptcy was the definitive end to the business. After filing, most companies choose to close all locations and liquidate the assets. This is the most common path to take, until now.

Even with the surge of bankruptcy, those behind the business are finding alternative paths to keep the business alive.

Behind the scenes, there are three core groups invested in every business: the company’s creditors, vendors, and landlords. All of these groups have a vested interest in keeping the company alive even if they are in debt.

The most recent trend for bankrupt businesses has been to keep stores open and negotiate debt loans rather than shutting down everything. The truth is that a lot of these businesses still attract customers and have a large cash flow, even if they are technically bankrupt.

For instance, Toys ‘R’ Us manages to take in $800 million each year on average which makes it a viable business. Of course, they are $5 billion in debt, but with an extension and restructuring of their business, they could one day turn a profit. However, this will only happen if they are given the chance to keep their doors open.

There are other options to lending helping hands to bankrupt businesses. After the popular teen retailer Rue21 declared bankruptcy landlords agreed to reduce their rents 20% on average. Though these situations are not ideal, this mentality gives businesses a life beyond bankruptcy and save thousands of jobs in the process.

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Business Finance

Everyone’s favorite online retailer is set to accept Bitcoin by October!!!

(FINANCE NEWS) One big name online retailer is about to hop on the cryptocurrency train and start accepting Bitcoin at check out as soon as October.

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Crypto currently

There’s no denying that cryptocurrency has taken off like wildfire, but will Amazon be jumping on the bitcoin bandwagon?

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According to one top source, Amazon has already started flirting with the idea and could be ready to fully use bitcoin in October.

Kind of a big deal

The news broke via The James Altucher Report, which is run by the former hedge fund manager and venture capitalist James Altucher. Altucher uses his experience in the business realm, where he has cofounded over 20 companies, to offer realistic financial advice and insight.

He communicates via his popular newsletters, blog and podcast. According to Altucher, Amazon is geared up to change their payment options as early as October.

Already Testing the Waters

Last year, Amazon partnered up with Digital Currency Group, a major investor in Bitcoin, to act as an intermediary between them and their clients. Amazon’s role is to handle all transactions, many of which include the popular cryptocurrency.

Major companies like Google, Ebay and Paypal already accept bitcoin so it is just a matter of time until Amazon follows suit. Even Japan and Russia recognize it as legal currency.

Amazon + Bitcoin = AmaCoin?

Don’t think of bitcoin as Amazon’s only option. Some speculate that Amazon may one day create their own currency.

As a company that has already started testing drones as a future delivery method, custom currency does not seem so out of this world.

The blockchain option has been a refreshing alternative to using traditional banks, especially for those who do not have faith in the current banking practices.

There are questions

If Amazon jumps onboard and rolls out a plan to use bitcoin this year, Altucher anticipates a major surge in its value. Since they have yet to announce an official strategy, and because the option of them creating their own currency is still up in the air, it is unknown how Amazon will integrate it into their system.

Will Amazon find a different way to accept bitcoin? Perhaps a brand new way? If Amazon does start using bitcoin they will join many other tech companies that have already anticipated the growth in its value. Amazon isn’t the only company that has started transitioning over. Many other tech companies have already started to become intermediaries to manage digital transactions.

#AmazonBitcoin

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Business Finance

Pirate Bay is mining cryptos using their users’ CPU… those scallywags

(FINANCE NEWS) Cryptocurrency and mining and pirates. It all sounds like something out of a sci-fi novel, but trust us, it’s 100% real.

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bitcoin pirate

Who pirates the pirates?

Well, pirates, naturally. Piracy is a fractal. There is nothing so small that someone won’t strap on an eyepatch, grab a parrot and snag themselves an unlawful piece.

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Such is the swashbuckling tale recently broken on Reddit about Pirate Bay, which is borrowing visitors’ CPU cycles to mine cryptocurrency.

TRANSLATION, PLEASE?

To translate that from Internet to English, “mining” cryptocurrency means volunteering your computer to verify blockchain transactions. We’ve covered blockchain in depth before, but the short version is it’s a particular security protocol that encrypts tokens representing money.

When you join a cryptocurrency exchange, you use that exchange’s blockchain to encrypt your stuff.

Some members of an exchange volunteer their computers to verify that transactions have taken place. Then they’re encrypted, never to be futzed with again. Those members get paid for their trouble with fractions of coins from the exchange.

The volunteers don’t actually do anything. The verification and encryption are automatic. That’s the point of cryptocurrency: no flighty or nefarious humans are involved in the bookkeeping. It’s all about the robots. That said, somebody owns the robots, and robot time is worth money. Therefore, miners.

SIXTEEN COINS – WHAT DO YOU GET?

“Miners,” in common currency dork parlance, are folks who invest in verifying transactions on a large scale, turning those fractions of coins into meaningful profit. It’s a smart way to make consistent money.

One big caveat: you need serious computing power to do it enough to matter.

Lifewire estimates an upfront cost of $3000 to $5000 to get real money out of the process. That said, their estimate also says 50 dollars a day in profit, which means over the course of a year you’re talking 3 to 5 times the money you put in. Ain’t chump change.

YAR

Which brings us to Pirate Bay. Pirate Bay is, as I’m sure the pure and innocent readers of American Genius would have no reason to know, a torrent site where various forms of media may be secured for free by nefarious means.

You’re shocked, I’m sure. Not everybody is, it turns out: as of this article, it’s the 88th most popular website on Earth. 25th in Canada! Canadians, man. They’re tricksy.

So, unsurprisingly, is Pirate Bay.

To state the obvious, swiping media and giving it away is not a working business strategy. Robin Hood did not have a positive P&L ratio. Typically – I’m told, I of course would have no way of knowing this myself – torrent sites support themselves through ad revenue. That wasn’t cutting it for Pirate Bay, plus they just wanted to get rid of the ads for an improved user experience, so they experimented.

Their first scheme was borrowing users’ CPUs while they were on the website, using unused processor cycles to mine cryptocurrency.

BROTHER, CAN YOU SPARE A CRYPTODIME?

The rollout was flawed. In fact the rollout was nonexistent: the only reason anybody even knew it was happening was somebody effed up the miner script and it started taking 100 percent of users’ CPU cycles as long as they were on the page. Oops.

But fair dues, Pirate Bay did exactly what tech folks should do when caught with their digital drawers down.

They fessed up in an official statement that explained their intent, addressed the problem people were complaining about, and invited further input. That’s more than can be said for, say, Uber.

More to the point, if the cryptocurrency mining plan goes forward, Pirate Bay will be providing a service to consumers in exchange for compensation at stated rates. The fact that it all comes in a novel form – the service is peer-to-peer, based on a model of free sharing; the compensation is provided voluntarily by people who aren’t receiving the services; the rates are measured in CPU cycles rather than money – doesn’t change the fact that fundamentally, “service to consumer for compensation” equals “business plan.”

For another time

Whether it’s a workable business plan or not is a question for Future Matt. Present Matt just has a question: if it does work, if Pirate Bay becomes a self-supporting enterprise trading encrypted, peer-to-peer money for an encrypted, peer-to-peer service, what then? At what point does it become more reasonable, and for that matter more ethical, to accept peer-to-peer transaction as a real thing and regulate it accordingly, as opposed to banning it outright?

Ask Piet Heyn. Better yet, order a mojito and run it past Captain Morgan. (It’s better because you get a mojito.) Back in the days of real pirates, when you wanted to rein them in, you just legalized them. If Pirate Bay establishes a legitimate revenue stream, that may well be the smart next step.

#PirateBay

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