Blog | 5 P’s of Life
With this pandemic, many people may find themselves unemployed. A difficult situation that is further complicated if you’ve recently become divorced.
From the divorce process, you may still be healing from a variety of emotions. And you may still be getting used to the terms of your divorce, especially if you had to relocate.
If you find yourself divorced and now unemployed, focus on moving forward. Stop reliving the past and redirect your energy to taking control of your finances.
Start first by analyzing your expenses and eliminating non-essential spending. Look at unused subscription services and overspending on food.
For loan payments, contact the lender and ask for reduced payments for a couple of months until you find employment. If you don’t ask, you won’t receive it.
If they say “no” and it’s a call center, call again and talk to a different representative. Be tenacious, but remain kind. You may need to speak to several different representatives and even a supervisor.
Once you have a good idea of how much money you need monthly, calculate how many months your emergency reserve will cover.
If you’re in a career that is not hiring or the hiring process will take time, you may need to take another type of job temporarily for income.
Think outside the box for immediate jobs. Many companies may have created new types of roles to make it through the pandemic. For example, explore opportunities at retail and grocery stores offering “order pick-up” – they need employees to shop for customers.
Another approach is to follow hashtags, such as #NowHiring on LinkedIn and Twitter. Also, drive around your town and look for hiring signs – it’s old fashion but still done by some companies such as The UPS Stores.
If you’re not comfortable venturing out of the house, then look for virtual opportunities. Companies may have shifted how they do business and created new virtual positions.
Also, websites such as Fiverr, 99Designs, and Upwork have been in existence as virtual assistants long before the pandemic. Explore if you fit their criteria.
Once you’ve decreased your spending and identified how much income you could generate, create a budget. If you’re struggling with the concept of a tight budget, remind yourself that it’s temporary.
When you go shopping, whether it’s for groceries or household supplies, use a list. Keep your budget visible to remind yourself of it.
If you need money now, you may qualify for an early withdrawal from your IRA without incurring the 10% penalty. The CARES Act allows “coronavirus-related” withdrawals limited to $100,000. Keep in mind, this withdrawal is treated as taxable income.
Finalizing your divorce and then becoming unemployed may seem as if there’s a cloud over your head. Shift your attitude by taking control of your finances. Reduce your expenses and generate income – even if it’s taking a job that’s not ideal.
Remember we are living in very unusual times. Stay PEF (positive, enthusiastic, and focused) and find a support group to help you through this difficult time.
ABOUT THE AUTHOR:
Niv Persaud, CFP®, CDFA™, RICP®, CRPC®, is the Founder of Transition Planning & Guidance, LLC. Life is more than money. It’s about living the lifestyle you want and can afford. For that reason, Niv consults with clients on money, life, and work. Her approach capitalizes on techniques she learned throughout her career, including as a management consultant, executive recruiter, and financial advisor. Her services include developing spending plans, comprehensive financial plans, divorce financial reviews, retirement plans. Niv actively gives back to her community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, enjoying the beauty of nature and laughing often — even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me.’”