If you have been made redundant from your job, it can be quite exciting to see your bank balance suddenly grow. However, knowing that you won't be getting a regular payment until you secure a new job means that you do need to manage this money carefully. Here are some things to consider.
Paying down debt
If the redundancy is a large amount of money, this can be a great opportunity to pay down some debts and rid yourself of some regular payments. This needs to be balanced against the fact that you'll need some money for day-to-day experiences while you trying and locate a new job.
In some cases, you might be offered a redundancy because the industry that you have been working in has undergone a major decline. This redundancy might be a good time to stop and consider your career options and pursue a new training course to get you ready for a new job. This has a cost not only in the cost of the course but also the lost income while you pursue this qualification. If you want to do this, it's also worth looking at which government subsidies and schemes may be able to help with the cost of your course.
Starting a new business
Another opportunity that may present itself is to finally start that business that you've always dreamed about running. Deciding on which business to buy and run depends on your work experience and expertise. This comes with some risks, but you might finally get to be your own boss. Before you start a business it's a good idea to prepare a formal business plan to work out how you will run this into money making business.
If you have received a particularly large amount and don't have any immediate needs financially, it might be a great time to do some serious investing so that you can reap the benefits for years to come. Deciding whether to do this in your own name or through your superannuation can be a decision best reached with some professional advice which looks at your circumstances including age and other investments.
If you come into a large amount of money through a redundancy, you should make an appointment to see a financial adviser. They can ensure that you get the maximum benefit from this payout, to ensure your money benefits you now and in the future.Share