step 1

Know your entitlements

First things first. Find out how much you’ll be receiving for your redundancy, as this may effect whether or not your Centrelink entitlements have changed. For example, you may now be able to qualify for Family Tax benefits.

Once you have your final payout figure, ensure your income estimate is updated on the mygov.com.au website and get in touch with Centrelink to discuss your circumstances in more detail.

step 2

Take a closer look at your budget

Most households will already have a budget in place, especially when kids are part of the picture. There’s no harm in being able to account for your money with money coming and going left and right.

  1. Drawing up a budget

    If you’ve never had a budget in place before, or if it’s just been a while since it was reviewed, being made redundant is a fairly good excuse to go over the numbers.

    Check out our guide to budgeting

  2. Use the tools at hand

    By no means will a redundancy always mean excessive belt-tightening, but living on an adjusted income can come as a shock, and can add unwanted pressure to your home life. By prioritising your spending in a household budget, you know where every dollar is headed.

    Read our guide on emergency savings plans

step 3

Your Lump Sum Payment

Every redundancy is unique, so depending on the nature of your work, you may now be sitting on a rather sizeable lump-sum payout. You may have received some advice from friends or family already on what to do with this sum.

Perhaps you’re thinking to put some towards your home loan, or you’re leaning towards adding a chunk of it to your superannuation, or maybe you’re looking to sure up your future with a series of well-placed investments.

Whatever your intentions, it’s never a bad idea to get a second opinion, especially from an expert in redundancy and early retirement. That’s why we’d recommend meeting with a Financial Planner, so you can get a full, clear picture of your options, and make the right choices for you.

step 4

Your silver lining?

They say every cloud has a silver lining, and in the case of redundancy, it comes in the form of forced change. Being made redundant can be quite a shock, and you’ll need time to adjust, but once you’re ready, you should use this time to your advantage.

Take a second to breathe and re-evaluate your career path. Are you comfortable to chase work in your former industry, or is now the time to shake things up and head down a different path?

  1. Review and update

    Do a full review of your skills and credentials, and bring your resume completely up to date

  2. Consider your options

    Consider your re-skilling options, and whether a change of industry will be better for you long term

  3. Is help available?

    If you do decide to re-skill, be sure to get in touch with Centrelink regarding your assistance eligibility