By Victoria Rollison
If you’ve been made redundant and have received a redundancy package, the first thing you may feel like doing is going on a shopping spree to make yourself feel better about losing your job. Here’s what you should really do with the money:
1. Invest the money while you search for another job
Investing the redundancy payout is a good idea if you plan to jump straight back into the job market. If you need to use some of the money in the meantime for your living expenses, make sure you invest it in a high interest savings account where you still have access to the cash when you need it. If you don’t need the money right away, keep it in a fixed-term deposit account with a higher interest rate. If you find a new job right away, you could make a bigger investment. For example, you could use the money for a deposit on a property for yourself or an investment property. If you already own a home, you could put the money towards your mortgage.
2. Go on an extended holiday where you can live cheaply
If you can afford to take some time off before you get back in the game, you could always take a vacation. Taking a month off can really work wonders for your overall confidence before you start looking for another job. Choose somewhere you can live cheaply, such as Thailand or Vietnam, with a warm climate, cheap food, friendly people and exotic scenery.
3. Start up a small business or invest in an established business
Being made redundant can turn out to be the best thing that happened to you. You’ll finally have the time to follow your dreams and put your ideas for your own venture into reality. Every small business needs capital, whether you’re developing a new business or buying into an established one. If you’re smart about how you spend your redundancy package, you can make it go a long way. It can be used to cover your start-up costs, such as a deposit on a loan to buy a larger business, or cover your living expenses while you make your idea profitable. To search for available small business opportunities, visit www.seekcommercial.com.au
4. Take some time out to study for a new career
Losing your job can also make you realise that it’s time for a career change. You could use your redundancy package to support yourself while you study for a new career. If you can keep your living expenses low and find somewhere affordable to live while you study, you can make your money go a long way and improve your future career prospects.