Money Management
November 11, 2024
Have you been struggling to get back to your feet after you lost your job? Was your business affected by the global Covid-19 pandemic? Perhaps you do not have a job yet the new year is here and you have financial goals to achieve.
Well, you do not need to worry much. There are steps you can take to standout and beat ‘Njaanuary’ woes as you regain your financial stability, irrespective of your employment status.
In this article, we will take you through these steps, to help you back on your feet and gain financial stability as the year begins.
First, let’s have an understanding of your employment status.
The term unemployment refers to a person who is capable of doing a paid job but is unable to find one. If you are unemployed, it means you are neither in any paid employment nor self-employed (doing something that can earn your income).
A person is regarded as unemployed after being discharged from a previous job and seeks to return to another job. Also, a person who has been running a business (self-employed) that collapsed over certain economic factors and is looking for other means to make money.
There are four types of unemployment;
The first one, demand deficient, occurs during an economic recession that forces companies to lay off workers following a reduction in demand for products or services.
The second type, frictional unemployment, is when a worker quits or gets fired and is looking for another job suitable to his skills, needs, and expectations.
The third type of unemployment, structural, is when workers seeking a given job do not meet the required skill set or the geographic location of the job does not allow them to secure it.
Lastly, voluntary unemployment, which is caused when workers decide to quit a job since its terms like payment are not meeting their needs and expectations.
These four types of unemployment are caused by demand and supply conditions like recession, financial crisis, and terms of service respectively.
Now, you have an understanding of your status. The next step will take you through the ways or strategies you can employ to get back your finances on track.
To change your unemployment status, you need to follow these steps;
After being laid off or your business collapse, the first step to take is to evaluate your financial status. This will help you in knowing the next step to take in keeping your finances back on track.
When you assess your financial situation, you know the adjustments you need to make, including earning, saving, and spending.
Calculate your net worth – know the value of your assets minus the liabilities, and know where you are; it can be negative or positive. You also need to assess your savings and spending. After knowing the financial situation you are in, start by adjusting your spending, savings, and earning situations.
Knowing your net worth provides room for future financial planning. Set up your financial goals – can be short and long-term – and align them with your net worth. Clearly define how you will be able to earn income and maximize it to meet your financial goals.
Remember, you do not have a source of income. Your plan should include strategies to create sources of income as a supplement to your net worth.
Analyze the market and identify available opportunities or in-demand skills to get you a job. For example, if the demand for electricians is available on a part-time basis and you have the skill, consider applying for the job. This will give you a chance to improve your skills and merge the market demand.
Plan for a job search and go for opportunities you know you’ll easily get fetched. This can depend on your qualifications and experience. Also, make sure that the job you are looking for will be able to meet your salary needs and expectations.
While planning for a job search, prepare your resume to meet the current market demands, apply to as many companies as possible and make follow-up via mails or phone calls.
Cool, you have your financial status and have devised ways to get them back on track. Here are 10 steps you can follow to get income and standout ‘Njanuary’ woes.
Idea to help you earn income, and get back on your feet financially
Perhaps you are good at doing something, you have skills, and have analyzed the market demand. You can opt for freelance job opportunities and start earning money. For instance, you can become a freelance marketer, plumber, electrician, or designer.
Freelancing will help you pick a few jobs or projects from different companies or clients and be able to earn money to supplement your finances.
If you are good at writing, consider starting your own blog. This can earn money by sharing exclusive blog posts, guest posts, or sponsored content. You can as well link your blog with advertising networks through affiliate marketing and start making money.
Here, you need to plan well on content production and improving your blog traffic. This will make sure that your revenue grows from time to time.
Write a book – it can be inspirational, educative, or entertaining and consider selling it online. With the growing trends in technology, many people are turning away from traditional reading to eBook or Audiobook reading.
Writing a book and publishing it on sites like Amazon can be sure to earn income that will keep you going.
A podcast is an audio recording of a discussion or an interview about a given topic or idea. Perhaps you have a topic/idea you are fond of discussing and sharing opinions about. Take advantage of the growing trends in the medium and start making money from your ideas.
You can start a podcast and monetize it by featuring exclusive content, doing affiliate marketing, or running sponsored content among other strategies.
By the fact that you have a good smartphone or a camera that can take scenic photos, you are good to start earning from it. All you need is to sign up to sites like Shutterstock, Adobe Stock, iStock, Fotolia, etc., and start posting photos of animals, nature, landmarks, or scenic events. These sites pay you whenever people use your photos.
Having a car and you just lost your job or business. There is no need in selling it. Convert it to a passive source of income by renting it out or starting Uber services. This way, you will be able to make money every day or after every week. Uber business in Kenya pays up to between Sh. 1,000 – 3,000 per day.
Starting a YouTube channel can help you earn money. Know what you like doing; your hobby and transform it into money. You can create videos on some topics like beauty, make-up tutorials, teach a skill or topical analysis, review products or other videos, and earn. All you need to do here is focus on a specific niche.
You can start a small business like selling stationaries, fruits, and vegetables and start making money. You can as well take on part-time jobs like marketing, copywriting, Data entry among others. This will be able to earn money to supplement your income.
If you have a skill, consider starting an online course to teach people about it. Your expertise in a given topic or area can earn money when you sell the course to sides such as Udemy. Pick a topic that you are best at delivering like financing, marketing, or communication, and compare it with other courses. This will enable you to come up with a popular and successful course that can pay you well.
Digital marketing is becoming popular with the growing trends in technology. If you are good at marketing products online, you can make money from companies or clients seeking your services. You can earn more if you have skills in search engine optimization (SEO), social media marketing (SMM), email marketing, google ads, Facebook ads, or influencer marketing. For influencer marketing, all you need is a huge following on Facebook, Twitter, and Instagram and you are good to earn money by promoting brands or products.
Being unemployed does not limit you from creating income. The choice is always at your discretion. Knowing your financial status, your skills, and expertise can earn your money at any time or stage in your life. To succeed in any of the steps to making money, determination is key.
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