Things to be avoided to see you through the tough phase of a job loss:
It is like your whole world crumbling down like a pack of cards arranged atop each other when you are faced with this harsh reality of having lost your job. For a level-headed approach to deal with this grim situation, some things should be avoided from the word “go”.
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These include:

1. Coming across as a frustrated person
When you are laid off without any rhyme or reason, it is all the more natural to be frustrated, angst driven, irritable and with a very low self image. But this frustration should not come out in front of others, especially, your prospective employer. If your frustration comes to the fore, you will be left out socially and employers will shy away from hiring you. For this, you can give a positive bend to your story that you had a learning experience, rather than cribbing about the injustice meted out to you.

2. Do not rush into accepting part-time jobs
When you are in a rush to get some cash inflow or ready finances, you may take up small part-time jobs. This is not wrong but one should be judicious in the choice of part-time jobs. This is because most part-time jobs tend to gnaw away into your share of unemployment compensation. As per Federal as well as State rules and provisions, the unemployment benefits are extended to a person only in those weeks where he/ she is not employed in any part-time job. So, one needs to be very careful in his/ her choice of a part-time job. Preferably, you can opt for a part-time job where your remuneration is more than that time period’s unemployment compensation. Then it will be of good avail.

3. Do not get bogged down by things which are beyond your control
Here you need a breather. Even if you have lost your job, the first thing to be done here is to be on top of things. So, there is no point building plans on the unpredictable premise of whether the new interview will be fruitful or for that matter, tearing your hair in despair while on a domestic cost-cutting spree. Relax! You have more important things to take care of.

4. Do not use your retirement funds for your daily living expenses
Your support systems can vary from unemployment compensation to money salvaged by cost cutting. But the lure of using retirement funds and savings should be avoided, because mostly, withdrawal from them entails the levy of a penalty.

5. Do not over spend on finding a new job
It definitely seems like a mad rush of interviews or applications galore till you finally get a good job replacement after losing your job. But it is good to go for one at a time or few at a time, that too chosen to meet your own requirements rather than clubbing yourself with interviews and overspending on them by applying for any and every job you come across. The idea is to choose your future and hence your job judiciously.

These don’ts are a big must to start with after you lose your job, so that you can bring your life back on track, effectively.

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There are people who come out of financial crises easily. However, that does not guarantee that they will not fall back into a similar situation. You must make changes in values ​​and habits while trying to structure good steps to forming good financial habits. After the difficult road to recovery or financial stabilization, a relapse can be destructive, not only for the individual but for their loved ones or family.

A financial relapse is not an event, but a process that can be prevented, detected and stopped. Normally this process of relapse is composed of increasingly frequent “little risky decisions” considered “relative risk” that the person begins to take. They are all linked to one another. Once you get back to making such decisions, you begin to undertake a “journey” that will lead you to a recurrence of your previous financial situation.

These small decisions that are underestimated by the person and those around him effects and leads him towards a situation where it will become the “Trigger”. You will reach a point where you will make it impossible to resist acting “recklessly” with your money, or where excessive or improper use of credit card or debit card will be inevitable, or spending beyond your income, or getting into debts which in the end will be impossible to pay.

Tips to avoid a financial relapse

In order to avoid plunging yourself back into a financial relapse, there are steps to forming good financial habits that you ought to take.

1.  Accept the fact that it can happen again: He who claims to be firm heed lest he fall! It is important to recognize the risk to which we are vulnerable. If you were already there, there should be no reason to go back. Overconfidence can become your enemy. You must be happy to have passed but you shouldn’t flaunt it will not happen again. It is better to be humble.

2. Exercise self-control and do not give in to certain permissions: Watch out for feelings or habits that want to resurface. Take preventive measures on paydays. Plan good use of your money, be careful where party festive activities tend to be and never be “blinded by moments” so you will not lose what you have worked so hard to earn. You should always know how to say “no” to those expenses that do not suit you, even if they seem lawful or good. Always say yes to saving and financial discipline.

3. Strengthen your values ​​and have dreams: Build your values. A person who strengthens his struggle and desires to succeed will get himself on the path of financial recovery. Share your financial dreams with your family and set icons that remind you of where you came from and how high you have been lifted financially.

4. Seek help and formal monitoring: Join groups at your workplace, community or church or groups that can offer spiritual and emotional support and contribute to strengthening in the financial area and in other areas of your life. This is going to strengthen the muscle of your decisions and will help you to have peace and security.

Financial Habits

At the beginning of any new year, most people engage themselves in making new resolutions in an effort to make their lives better in all aspects. People make resolutions geared towards improving their health, financial and family status by altering their habits. A huge number always resolve to change their financial habits in order to improve their social status. Below are some tips on how to develop great habits on handling personal finance the whole year and beyond.

Budgeting

If there is a great personal finance management tip that any person willing to develop a great financial habit can learn is operating on a budget. You do not have to live on a shoe string budget or a complex type of budget. You ought to create a simple and easy to follow budget to ensure that you plan well in advance for all your needs either on a weekly or monthly basis. Ensure that all your basic needs are adequately provided for as well as your leisure activities to ensure that you have something to unwind and relax your body after all the hard work you put in. In order to ensure that you follow your budget perfectly, you could automate your finances which will ensure that everything goes as planned in the budget.

Avoid Impulse Buying

In order to ensure that the financial habits you vowed to adhere to and observe without fail in your New Year’s resolution work out, you should learn to avoid impulse purchases. In order to excel in this, you must bind yourself to a set of rules concerning any spending you have to do. Before you purchase anything, you should always ask yourself if you really need this thing and whether it forms part of basic needs or it is just a mere possession. This will ensure that at the end of the day you get something small to spare in your savings account. Consequently, it ensures that whatever you spend your money on will be for the long term and not for the short term meaning that your future will be catered for due to your diligence in spending your personal finance.

Shed of Bad Money-Spending Habits

If you want to achieve your financial goals, you have to critically consider all your money-spending habits and decide to shed those that are frugal and money-wasting. Ditching some bad financial habits could prove to be a blessing in disguise as you will have more money to do some constructive projects with at the end of the day. In order for you to be successful in this front, it will be important to identify the root cause of the bad habits and finding a solution for them. You could start by reducing the number of times you go out for lunch and dinner by both carrying a packed lunch and staying in. Using your credit card on things that are not absolutely necessary or things that you can do without as that will accumulate unnecessary debt. You could also direct all your bonus cash to paying debts and recurring bills which will spare your salary for other developments in your life.

Lastly, it is important to develop a saving culture for future needs as well as retirement. It is important for one to start saving early for their retirement as it will guarantee them of an easy retirement life. You should also strive to spend less than you earn and try as much as possible to invest in yourself in order to improve your self worth. If all the above financial habits are followed strictly, then one will be able to achieve their set resolutions and financial goals easily.