On a personal level, a redundancy can be an emotional roller coaster ride. Many people may look back on redundancy as the best (financial) thing that ever happened to them. However, it does present some challenges that need to be carefully managed. Learning to cope with these mood swings can help you prepare for your next career move and make sound financial decisions. The first item you need to tackle from a financial standpoint is your payout. Make sure you understand what each component of the payout is for and the way it is taxed.

Next you need to focus on your expenses. Use a budget to accurately record all of your expenses. Allocate part of your payout to cover those expenses for at least three months.

Seek advice. Call Centrelink to find out your entitlements. Don’t be afraid to call up your former employer to seek clarification on your payout. Speak to your financial adviser about the options available to you to maximise the effectiveness of your payout, manage your household budget and restructure your debt.

Once you have your finances in order, you can then focus your efforts on landing your next job and looking after yourself and your family.

Tips For Working Through Your Redundancy

• Prepare a detailed and accurate list of your living expenses
• Gather all your paperwork and review your payout. Call your former employer’s HR department if anything is unclear.
• Allocate required income from your payout to cover living expenses for 3-6 months.
• Meet with a qualified financial planner to understand your options.
• Pay off any credit card or personal debt.
• Join a gym or develop an exercise program to keep you healthy and feeling positive.
• Review your mortgage – speak to your mortgage broker about options you may have to restructure the terms of your mortgage or your repayments.
• Find out if you are eligible for Centrelink benefits – ask Centrelink or your financial planner.
• Maximise any outplacement opportunities offered by your former employer.
• Review and update your résumé.
• Network, network, network – have coffee with former colleagues and let them know you are looking for fresh challenges, and join or update your profile on LinkedIn.

Most importantly – do things that make you feel positive. Eat well, exercise regularly, catch up with family and friends, get involved in the local community, and give yourself small rewards.

Should you find yourself in this situation, be sure to contact Brett Moxey for additional advice.

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