Unemployment and Financial Stress – New Dilemma or Old foe?

Reasons for financial stress are plenty. Be it paying off dues, taxes, funding for your kids’ college education, divorce settlements – the list goes on and on. It is the main source of stress for many adults, causing problems in relationships and work which may result in serious damage to your mental health or even lead to physical problems or a mental breakdown. Financial stress is not something you ought to take lightly.

Unemployment is usually cited by respondents in their 40s and 50s as a major source of financial stress. It is particularly painful for people who are closest to their retirement age. How will they earn money now? How will they support the family without a fixed source of income? These questions can plague the mind, resulting in various detrimental side-effects like mood-swings, eating disorders or even epilepsy. At such times, it’s important to remember a few things and take specific precautions.

  1. In case of Retirement:
  • Plan Ahead

This is something that is recommended to everyone. Plan your finances and assets from beforehand so as not to deal with it all at the same time when you retire and it’s time to reopen the books. Set up separate accounts for kids college funds and for contingency in case something were to wrong. There will always be enough money if you start allocating your money the right way from now.

  • Singing a prenuptial agreement is also important.

This will go a long way in case your marriage comes to an end. In many cases divorce settlements take up far more time and money because there was not a written agreement on the settlement. This is a practical thing to do when getting married.

  • Plan your will or trust fund

If you are nearing retirement age, it is high time you start planning your will or in other cases if you plan to establish a trust fund. Planning a will is serious business. You need to know the correct procedures, the state mandated laws and of a good attorney. I think it goes without saying that an attorney is highly necessary for planning a trust fund, even if is a living trust fund. Without the right kind of consultancy, there could be plenty of damage done to your estate. Hence, the timeframe is also crucial – get it done before you become unemployed.  

  • Plan a retirement investment

With a growing trend of 50+ entrepreneurs, you could very well save up some money to invest in a good project. Make sure you are confident of the investment generating income. And be very wary of fraudulent middle men or shady correspondents. It’s best to invest in a business you already know something about. However, a lot depends on the kind of entrepreneurship you want to pursue after retirement. See, even with a large list of networks and experience, a career in Managed Content Service will still cost you more. So you have to find the perfect balance to avoid the stress rays touching you. A good tip here is to consider investing on Consultancy and Estate Planning – the dividends come in heaps!

  1. In case of potential unemployment:
  • Save for a rainy day

In an ever growing population, there are more people than jobs in many countries. You can never truly know when your job is on the line. Whether you can save the job or not is partially or entirely up to your superior, but whether you can save up for such a scenario is up to you. No matter how much you earn or how troubling the expenses of living or supporting a family becomes, have a savings account specifically for situations like these. It will help you get through the phase of finding another job.

  • Be mentally prepared

If you can sense that you might lose your job very soon, then be prepared not only financially but mentally too. Start looking for opening and don’t let depression or anxiety derail you from doing damage control. Start revising your resume and building a new portfolio. If you are mentally prepared, the stress will be less likely to engross you when you need to be even more focused.

You might think you won’t be able to handle all the stress that comes with unemployment, be it because of an unsatisfactory job, or an impending retirement, you can always take precautions to take care of your finances and your health. Talk to a shrink if you have to but remember, the important thing is to always remain focused about how you are handling your income and assets.