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There are times in life when finances will be tight. You need to be prepared for these occasions if you are going to get through them without any major problems. There are plenty of examples of times like this, and the problem is that you often don’t think they are going to affect you. If you have a good job and you feel confident your boss is happy with your performance, you probably won’t even consider the possibility of redundancy. Or, maybe you think that when you finally buy a home, you can keep the costs under control. But sooner or later, you will find yourself facing the problems that everyone experiences in these situations. So, how do you handle them without making things worse? Well, I’ve got some tips that should help a lot.

Dealing With Redundancy

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The first thing to understand about redundancy is that it will hit you when you least expect it. One minute you’ll be on top of the world and the next, you’ll be packing up your desk. It can be a challenge to handle a situation like this, and the best way to approach this is pre-emptively. You should always be keeping an eye on the job market and looking out for opportunities that could help you if you did lose your job. Remember, on average people spend around six months without a job when they are made redundant. You can reduce that time if you know what’s out there before you’re handed that final paycheck.

The other factor to be aware of is the benefits that you’re entitled to when you are made redundant. It is noble not to want to claim any benefits at all and instead rely on money that you might have saved over the last few years. But, you shouldn’t avoid benefits completely if they could help you get by during this difficult time.

You might also want to think about reducing your monthly spends through the month. One of the ways to do this would be to cut out any monthly subscriptions that aren’t completely necessary. That doesn’t mean you should cancel your internet because you could use this for job hunting.

The final piece of advice for dealing with redundancy would be to look for little ways that you can make extra money in your spare time. An example of this would be completing online surveys. While you won’t make a fortune, it could make some of your monthly bills easier to pay when you can’t rely on your income.

Unforeseen Injuries

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You could argue that all injuries are unforeseen, but it’s important to be aware of what an injury could mean for your finances. If you live in the UK, you don’t have to worry about medical bills which makes things a lot easier. However, you do need to think about time off work. In some cases, you will be able to get paid sick leave, but you might find that you are on a freelance contract under another name. Plenty of companies are now hiring workers on freelance contracts. This means that they don’t have to provide any benefits including sick pay. You can see how that would be a problem because it could leave you out of pocket during your recovery. But how do you handle this?

Well, first, it’s important to think about the cause of the injury. It’s quite possible that it was someone else’s fault and if that’s the case you should consider legal avenues. Remember, an injury can be small at first like whiplash. That’s a common injury when your car is hit from behind. How much do you get for whiplash? Quite a lot because it can result in chronic pain that could be permanent. This might alter the quality of your life and severely impact how much you can work. That’s why if you are injured in an accident, you should always speak to a lawyer.

The other piece of advice would be to make sure that you are saving a nice cash cushion that you can fall back on in cases like this. That way, if you are unable to work you will still be able to get by with the cash that you have built up over the years.

Moving Home

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Whether you’re buying your first house or simply moving to another place, you shouldn’t underestimate the pressure it’s going to put on your finances. The mistake people make is thinking that they only have to worry about the cost of the deposit for the home and this isn’t true. You need to think about everything from legal fees to removal costs and everything else on top of that. If you’re selling your old home, you’ll have to pay marketing fees, and the list just keep growing. If you are buying a fixer upper, you might even need to pay for renovations on the home when you move in.

The bottom line is that these costs aren’t a problem as long as you’re aware of them. But if you’re not you could commit to buying home without the true extent of the financial pressure that you’ll be under. Then, there are other costs to take into consideration like mortgage repayments. Suffice to say the first few months or even years or buying a home can put a lot of pressure on your finances and you must prepare for it.

Legal Issues

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Finally, you might think that you’ll never end up in court, but it’s important to understand it’s not just criminals that have dealings with the law. You might end up arguing a traffic offense, or it could be more personal like a divorce proceeding. Law cases always cost money, and it’s just one more issue that can impact your financial situation. So, if you ever do end up going to court make sure you are aware of how much it’s going to cost you. Particularly, if you have chosen to start a legal claim yourself because it could end up being a lot more than it’s worth.

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