Publish Date: 27/08/2019
Dealing with retrenchment: Financially and emotionally
It's not easy to deal with the shock, disappointment and stress of being retrenched. It could impact your health and wellbeing. However, if you’re prepared financially, it’s easier to pick up the pieces after an unexpected loss of income or derailed career plans.
This means you need to change the way you handle your money from an early age, ensuring you have a contingency plan and a decent nest egg to cushion any financial blows. The good news? If you get to the end of your career without ever having been retrenched, you can reallocate these funds towards your retirement, travel or opening a new business.
Through a smart investment strategy and sound advice from your financial advisor, you could be better prepared for life’s unexpected life events, like retrenchment. An emergency fund is important, but it’s also essential to take out a life insurance policy to protect you and your family. Financial advisors typically recommend that you have the equivalent of at least six months of your salary saved. This will give you some piece of mind, knowing that you can cover your expenses in the short term while you seek other employment opportunities.
However, don’t just leave your money in your cheque account. Work out an investment strategy designed to grow your money and reap the benefits of compound interest. Invest today for a better tomorrow. Work out a financial plan with your investment advisor. Discuss your investment goals and how you can achieve those financial goals. For example, what types of investment are available that suits your risk profile, investment objectives and time constraints. Consider these important factors:
Facing the emotional aspects of retrenchment
Sound financial practices will better prepare you to weather any financial crisis. Having cash available when you’re retrenched means less stress, but it doesn’t entirely take away the emotional impact of retrenchment. Many people experience feelings of horror, panic, failure and inadequacy, all of which are compounded by a loss of routine and less contact with colleagues.
Spend some time putting the situation into perspective and coming to terms with your changed circumstances. Even if you didn’t particularly love your job, you may want to take some time out to mourn the end of an era in your life. Be sure to surround yourself with positive people who can help you see the positive side of retrenchments. This is an opportunity to look for a job better suited to you or the chance to start a new career entirely. If you have funds available to you, you might decide to go back to studying.
Update your CV – and don’t be afraid to seek out professional advice if necessary. It might have been some time since you were in the job market and giving your CV a new feel and structure could open new, unexpected doors for you.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.