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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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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

Millennial women share about how they spend (and save) money

(ENTREPRENEUR) A group of millennial women were surveyed about how they save their money. These are their stories…

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millennial money savers

This year, I turned 24, and while I know this isn’t old, I never thought I’d be this old. With this in mind, I’ve been asking all of my friends and family members the same question: “If you could give any piece of advice to your 24 year-old self, what would it be?”

While I’ve been getting varied and interesting pieces of advice, the one I need to focus on more is working on saving more money. This can be tricky, especially when you first start making money, so it helps to hear how others do this.

Recently, Bustle surveyed over 1,000 millennial women, in their 20s and 30s, and they shared how they save money. Their incomes ranged anywhere from $30k to $150k. Included below are some of the individual responses that include innovative ideas that anyone at any age could potentially implement.

1. Samantha, 30: Uses a budget for her finances. Rather than enjoying instant gratification, Samantha makes a wish list of things and experiences she wants to save money for. Then if she accomplishes a goal, she treats herself to something on the list.

2. Ronnika, 33: Instead of continuing a habit of meeting friends for drinks every week, Ronnika has found it is more fiscally responsible to invite friends over. Also, She takes any extra money from her paychecks and puts it in a checking account that is not locally accessible.

3. Michelle, 24: To save on entertainment, Michelle has opted for only using WiFi rather than getting cable. Additionally, she keeps her thermostat set at 62-64 degrees and uses layers and space heaters to save on costs. She also encourages packing a lunch everyday, as that is a big saver.

4. Kelly, 24: Kelly attributes her money saving to living with her parents. She also suggests an app called Qapital: “You can set your own rules for how you want to compile your savings — for example, I have a ‘Round-Up Rule,’ which rounds up every purchase to the nearest dollar and puts that change into savings, as well as a ‘Set and Forget Rule,’ which just automatically takes out a pre-selected amount. For me it’s $10/weekly.”

5. Libby, 24: Libby only uses her credit card for necessary expenses (such as payments for her car) and puts anything else on debit. With her credit card, she makes sure she pays off the balance in full each month so that she does not fall into debt.

6. Savannah, 25: Savannah keeps a peaceful mind savings to fall back on in case of emergencies. “I’ve found having a savings account balance equivalent to two months of my salary is a good cushion.”

7. Alexandra, 26: Alexandra keeps an Excel spreadsheet that tracks all of the money she has coming in as well as what is going out. She helps herself save by setting goals of what she wants to save and by when.

8. Lyn, 29: Lyn saves her money by looking at it as a way of paying herself first. She puts a large portion of her paycheck into her 401k and puts the maximum amount of her paycheck into her Roth IRA each year. She will then spend liberally on the things that are important to her, and harshly cut anything that she deems frivolous or won’t make her happy.

9. Marissa, 26: Marissa budgets her money and attempts the tactic of cooking for herself as much as possible. She has found that one meal out is equivalent to five meals at home.

10. Danielle, 23: Danielle saves by setting up two automatic transfers from her paycheck to budgeted savings. “So it’s like I don’t even notice the money is there. One transfer goes to ‘future me’ in the form of RRSPs or other investments, and one transfer goes to ‘fun times,’ like trips abroad.”

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Business Finance

You got an LLC and you’re ready to hire – 3 things lenders look for

(FINANCE NEWS) Yes, securing a small business loan of any kind is tedious and depends on varying lending organizations and business needs, but there is a list of general requirements small businesses should be aware of before getting knee-deep in conflicting information about lenders.

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401k retirement fund

If you are reading this, you probably have an LLC for your small business already, or money talk gets you going. If it is the former, let me say CONGRATULATIONS, and insist you pat yourself on the back in honor of your small business’s progression. Your arrival at a point where expansion is necessary is no small feat given half of small businesses fail in the first year. So, kudos to you.

Now, back to the money talk…

For LLC businesses looking to expand, please don’t fret about all of the information you’ve seen on the web. Yes, securing a small business loan of any kind is tedious and depends on varying lending organizations and business needs, but there is a list of general requirements small businesses should be aware of before getting knee-deep in conflicting information.

After some extensive research posing as the owner of imaginary businesses and annoying every loan officer who’d take my call, I’ve found three general lending requirements. I also provide a collection of the tangible information banks will likely review to meet those requirements. Take a gander:

Assets
Small businesses must have necessary assets: steady cash flow, financial reserves, personal collateral to support a variety of business fluctuations (i.e. unexpected employee loss), and a realistic pay off plan. These assets and financial safety nets are necessary for any lending organization to be confident in your business’s ability to support employee expansion in lieu of current expenses.

Proof of past
Just as you will come to expect from your soon to be employees, lenders want proof of the past and how you’ve managed past loans to align with your business goals. Historical evidence will further determine if your expansion is feasible, but also if it is worthy for the company to accept the lending risk.

Specific plans
Finally, be prepared to provide your small business’s explicit expansion plan, including how you arrived at your suggested loan amount and how you intend to divvy out the funds. It is important that you are as specific as possible in your projected numbers, seeing as one employee could make a $60,000 difference, and largely affect your expansion plan and financial need.

Before you go…

Now that you’re equipped with the magic three, you’re probably feeling empowered to walk into your nearest bank and demand your small business loan. Let’s first be sure you have all of the necessary information on-hand and ready to produce.

Lending companies that look for the magic three before investing arrive at their conclusion after collecting data from the following pertinent information:

– Proof of collateral
– Business plan and expansion plan
– Financial details
– Current and past loan info
– Debts incurred
– Bank statements
– Tax ID
– Contact info
– Accounts receivable information
– Aging
– Sales and payment history
– Accounts payable information
– Credit references
– Financial statements
– Balance sheet
– Profit and loss history
– Copies of past tax returns
– Social Security Numbers
– Assets and liabilities details

Now, my friend, do I release you as proud as a parent unto your nearest bank to secure your small business loan and begin growing your staff the way you’ve dreamed. I’m confident you will find the aforementioned information helpful in said quest, and would like to wish one last time (because it’s impossible to over-congratulate) a sincere CONGRATULATIONS on your businesses growth.

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Business Finance

Financial impostor syndrome – what it is and how to fix it

(FINANCE) Financial impostor syndrome is more common than most know, but seeing polished people in your industry may make you feel like your struggle is unique – it’s not.

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financial impostor syndrome

If you’ve ever felt like a fraud when it comes to your success, you’re not alone. Impostor syndrome is recognized as a “a psychological pattern in which an individual doubts their accomplishments.”

Typically, impostor syndrome is discussed as it pertains to your career, but it can manifest in other areas, like with finances.

Financial impostor syndrome has many components. You might feel as if you are bad with money and can’t be any different. Maybe you’ve made some bad decisions in the past.

You let these mistakes define your financial future.

Or maybe you dwell on the endless Instagram posts from people in your industry that depict the glamour of their financial successes (not knowing that they don’t own that jet, their client rented it for the weekend, or that they have a Ferrari but are potentially hiding it from being repossessed).

Some people believe money is bad or that they don’t deserve financial stability. Especially freelancers and entrepreneurs.

Alternatively, you may have money in the bank, but feel like a fake or fraud for earning it. You might think it was just luck that you have any resources, rather than believing in your own capabilities.

Financial impostor syndrome keeps you from reaching your potential.

Most people who have impostor syndrome also have low self-confidence and fear that they’ll fail. This can self-sabotage success. Instead of taking initiative and making positive changes, someone with impostor syndrome may bury themselves in work and avoid taking on extra responsibilities that could prove themselves.

When it comes to money, you might think that you can’t make changes, so why try? This type of thinking limits you.

Overcoming financial impostor syndrome isn’t going to happen overnight, but it is possible with some work.

1. Talk about it. You have to look at the reality of your situation versus your perception. Work with a mentor or mental health professional who can help you get information about impostor syndrome and help you manage your symptoms. You may want to consider getting a financial coach or manager.

2. Make a list of your accomplishments and successes. Celebrate your achievements. Learn to recognize what you contributed to your successes.

3. Create a new script for times when you feel like a failure. “I can improve my finances.” “I am able to stick to my budget.” I deserve financial freedom.”

4. Change your habits. Take small steps towards financial success. Spend cash only. Automate your savings and your bills. Cut up credit cards. Learn your strengths and weaknesses. Stick to your budget.

Additionally, you must forgive yourself for past mistakes.

Everyone has at least one or two regrets when it comes to their money. We don’t always see those mistakes, because we only hear about the person’s success. If you can’t learn to forgive yourself, you restrict your ability to make changes. Blame and shame never help anyone change behavior.

Make a plan to change your financial impostor syndrome. No matter what you’ve done in the past, you can start making small changes to your financial situation to find a way out. You deserve it.

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