How to Cope After Losing Your Job Unexpectedly

Table of Contents

    Losing your job can be a huge shock and significantly impact your lifestyle. However, it’s important to know that support is available and that there are steps you can take to navigate this challenging time. 

    Here’s how to manage your finances and access support when unexpectedly unemployed.

    Let’s Get Straight to the Point

    Losing your job can be a shock, but support is available. You can seek financial help through government benefits, hardship programs, lending organisations and financial counsellors. 

    Understand your entitlements, review insurance and superannuation, and plan your finances for the next few months. Prioritise mental health by contacting friends, family, or support services like some organisations. 

    When ready, explore job search and career resources to return to the workforce. Taking these proactive steps can help you cope and regain stability.

    Seek Financial Help When Needed

    It’s normal to feel overwhelmed after losing your job. Thankfully, resources are available to help you manage financially during this period.

    1. Access Government Support and Benefits

    In Australia, the government offers various support payments through Centrelink to assist you while you look for a new job. 

    Check your eligibility for payments like JobSeeker, Rent Assistance, or other benefits for which you may qualify. Visit the Services Australia website for detailed information on what to do if you’ve lost your job.

    2. Find Urgent Help for Immediate Needs

    If you’re in crisis and struggling to meet basic expenses, consider seeking urgent financial assistance

    Various organisations provide services to help with food, housing, bills, and emotional support. Find resources such as food banks, housing support programs, and crisis hotlines for immediate relief.

    3. Manage Bills and Mortgages During Financial Hardship

    If you’re having trouble paying your utility bills, mortgage, or rent, the best first step is to contact your service/lending providers. 

    Many companies offer hardship programs, including extending due dates, allowing smaller repayments over time, or temporarily pausing payments. 

    For credit cards and loans, inform your provider about your financial difficulties and request a hardship variation.

    For more step-by-step help, refer to resources like:

    • How to handle issues paying your bills and fines.
    • Tips for managing mortgage difficulties.
    • Assistance with rent payments (available through the National Debt Helpline).

    Know Your Entitlements After Job Loss

    When your employment ends, you may be entitled to final payments. It’s essential to understand your rights and the compensation you should receive.

    1. Check for Redundancy and Retrenchment Payments

    Consult your employment contract or ask your former employer about redundancy or retrenchment payments. You may also be entitled to payouts for unused annual or long service leave. 

    The Fair Work Ombudsman website provides comprehensive information on ending your employment, including what you should receive in your final pay.

    Use the Fair Work Ombudsman’s Notice and Redundancy Calculator to calculate your entitlements.

    services tax

    2. Review Your Insurance and Superannuation

    If you have life insurance, check if your policy includes redundancy cover. 

    Some insurance policies offer income protection, which can provide short-term financial assistance if you lose your job. Additionally, review your superannuation fund for income protection options.

    Some super funds allow early access to your super if you’re experiencing severe financial hardship. Visit the Australian Taxation Office (ATO) website for information on early super access.

    Plan Your Finances for the Coming Months

    It’s crucially important to manage your money while out of work, so you can clearly understand your financial situation and plan accordingly.

    1. Create a Budget with Available Funds

    List out your financial resources, including:

    • Savings.
    • Other income sources (e.g., government benefits, investments).
    • Lump-sum payments (such as long service leave or redundancy payouts).

    Next, list your expenses, including essential costs like rent or mortgage payments, bills, loan repayments, healthcare, groceries, and insurance premiums. 

    Evaluate where to cut back or find alternatives to lower your monthly spending. For more guidance, refer to resources on managing a low income.

    2. Seek Advice from a Financial Counsellor

    If managing your finances feels overwhelming, consider contacting a free financial counsellor. They can assist you in reviewing your budget, managing debts, and exploring ways to improve your financial situation. 

    Financial counselling services can provide support tailored to your needs and help you make informed decisions.

    Prioritise Your Wellbeing During Unemployment

    It’s vital to look after your mental health during this period of uncertainty. Losing a job can significantly impact your emotional well-being, so don’t hesitate to seek support.

    Connect with Friends, Family, and Support Services

    Talking to friends and family about your feelings can alleviate stress and provide emotional comfort. Some organisations offer resources on mental health care for additional support. 

    Start Planning Your Next Career Move

    When you’re ready to begin looking for new employment, taking a strategic approach can help ease the transition back into the workforce.

    Discover Job and Career Resources

    The Australian Government’s What’s Next website is an excellent starting point. It offers information on job search support, career exploration, and training opportunities. 

    Updating your resume, practising interview techniques, and considering new fields can broaden your options and prepare you for future job opportunities.

    Conclusion

    Losing a job is undoubtedly challenging, but by taking proactive steps, you can manage your finances, seek necessary support, and make informed plans for the future. 

    Remember, take comfort in knowing you are not alone — there’s plenty of resources and services available to help you navigate this difficult time and regain your footing.

    services superannuation

    Frequently Asked Questions

    1. What government support can I access after losing my job?

    You can apply for payments like JobSeeker, Rent Assistance, or other Centrelink benefits. Visit the Services Australia website to check your eligibility and how to apply.

    2. What should I do if I can’t pay my bills or mortgage?

    Contact your service providers to discuss hardship programs. They may offer options such as extending due dates, smaller repayments, or temporarily pausing payments.

    3. Am I entitled to any final payments after a job loss?

    You may be entitled to redundancy pay, unused annual leave, or long service leave. Check your contract and use the Fair Work Ombudsman’s tools to calculate your entitlements.

    4. How can I manage my finances while unemployed?

    List all your available funds, including savings and benefits, and review your monthly expenses. Cut back on non-essential spending to stretch your resources further.

    5. Where can I get support for my mental health after losing my job?

    You can contact friends, family, or services like Beyond Blue, which offers 24/7 support. It’s important to talk about your feelings and seek professional help.

    stephanie mitchell financial planner
    Stephanie Mitchell has accumulated extensive knowledge in the finance industry since 2011. She holds a Bachelor of Business in Banking and Finance, along with a Graduate Diploma in Financial Planning and a Diploma in Financial Planning. Stephanie finds great joy in building long-term, trusting relationships with her clients and guiding them toward their financial goals. She is passionate about alleviating some of the financial pressures and burdens that many individuals and families face. Outside of her professional life, Stephanie enjoys traveling the world with her husband and exploring different cultures through food. She stays active by attending regular boxing classes and is an enthusiastic supporter of the Carlton football team – especially when they are winning. Go the Blues!
    Scroll to Top