Blog by Patrick Vernon on 'Redundancy'
Redundancy can happen to the best of us. It’s not a reflection on your working abilities or a personal vendetta but the fact that your current employer simply cannot afford to pay for your role anymore. It’s best to take the situation in your stride, plan for the impact it will have on your current financial situation and try out some of these ways of making the most of your redundancy pay:
High interest accounts
Search around for the highest interest current account and ensure you have the minimum amount of money in there, building up interest. Nationwide, for example, offers a premium account that does cost £10 a month but you will gain 3% in interest at the end of each month that is added to your account so if you start using it now you could accumulate some extra money.
Making small investments could prove lucrative in the future, but ensure you only invest what you can afford to lose. Wine is currently a popular choice for investors, but does require a significant investment on your part – check out this article on investing in wine – but there are other things to put your money into. Micro investing is a popular choice for many people now, and there are even apps that do the hard work for you, taking spare change from your account and putting this directly into an investment opportunity.
Check what you are entitled to when it comes to money, perhaps you are a single parent and could claim child maintenance or you could apply for jobseeker’s allowance while out of work and looking for a new position. These will both ensure your redundancy pay goes further and can assist with those essential bill payments throughout the month. Use this benefits checker to discern what you are entitled to.
Selling items around the home
To increase the amount in the bank account it might be a good idea to take a look around your home and sell some items for extra cash. You can either do this online via a site such as eBay or set up a stall at a car boot for cash in hand.
If you have not been made redundant, but have heard whisperings of such an event taking place then consider carrying out these actions:
Know your rights – It’s important you understand what you are entitled to when being made redundant. The Money Advice Service confirms that if you have been working continuously for your employer for two or more years then you are entitled to redundancy pay and how much you get depends on the age you were each year you worked for them and your current salary – take a look at the Money Advice Service website for more information on your redundancy pay entitlements.
Clearing debts – The last thing you need is debt repayments on top of a stretched income. If you can, pay off any outstanding debts and refrain from taking out any more credit until your financial situation improves.
Planning ahead – Ensure you curb your spending now and budget carefully for the potentially tough months ahead.
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