Ten tips for dealing with job loss
There鈥檚 no question that losing your job can be scary and difficult. But if you are fortunate enough to have some warning, you can take some steps to soften the blow, whether layoffs are at the rumor stage or already underway. These 10 suggestions can help you prepare yourself financially, mentally and emotionally for a challenging time.
Before a layoff
1. Pay off as much debt as possible
聽and aim to be completely debt-free. The only exceptions, if necessary, are your mortgage and perhaps a car payment. Aggressively attack all of your other bills and聽. Online resources like聽聽provide tools to help you strategically eliminate debt. A job layoff or pay reduction is easier to manage when you have virtually no bills. In the event of a job loss, ideally you鈥檇 have to cover only basic living expenses such as utilities, gas, insurance and food. Of course, if you don鈥檛 have much notice, it will be difficult to make this happen right away, so do your best to get rid of debt now.
2. Save as much as you can
Develop a spending plan or budget that will allow you to save as much money as possible. Typically I advise people to have at least eight months鈥� worth of expenses in a聽聽for emergencies. But if you are expecting a job loss, you may need much more than an eight-month聽. Save as much money as possible. Save, save, save, and then save some more!
3. Update your resume and LinkedIn profile
Spruce up your job history while you are still employed. Once you begin your job search, it will be easier to network with an established profile. Ask your LinkedIn contacts for recommendations.
4. Make medical appointments
While you are still covered under an insurance policy, schedule as many medical appointments as possible. If you have any pending medical procedures, get them done now to take care of yourself. In addition, find out your company鈥檚 policy on unused sick and vacation time. Take or save it accordingly. For example, if it鈥檚 a 鈥渦se it or lose it鈥� situation, you鈥檒l want to use the time. This time can be used to get your financial house in order. If you will be compensated for the remaining days, save this money to supplement your income once you鈥檙e no longer employed.
After a layoff
5. Learn a new skill
Increase your earning power by exploring your interests and deciding on an alternative career. Having another skill will not only provide more options for you,聽but it will do wonders for your self-esteem. If you are unable to find another job in your current field, your new expertise will give you another way to financially support yourself.
6. Reduce your cable bill
Contact the provider of your home phone, cable, and internet service to see if it has any specials that will reduce your bill. Consider bundling services or eliminating features that you do not use regularly. For example, instead of the full-tier cable package, reduce it to a lower-cost package or purchase streaming service through providers such as聽Roku, Amazon or Netflix. Many households do not have a landline phone, so perhaps this expense can be eliminated as well.
7. Change to a cheaper cell phone plan
惭补苍测听聽companies offer reduced rates in exchange for a two-year contract. However, some companies such as MyFamilyMobile (powered by T-Mobile) offer plans as low as $25 per month for unlimited text, minutes and data without a contract.
8. Apply for subsidies
Many organizations offer services on a sliding scale, which means that their costs聽are based on your income. Your local gym or YMCA or your child care provider may have聽this option. Do some research to see which services in your community offer a sliding scale or other subsidies based on income. If you do lose your job, apply for any reduced fees or subsidies for which you qualify.
9. Begin an exercise regimen
It鈥檚 easy to become complacent and discouraged when faced with job loss. If you become unemployed, exercise and socialization will become critical. An exercise routine will make you look and feel better and will allow you to meet new people. And remember, if possible, apply for a membership discount based on your new, reduced income.
10. Network, network, network
Contact your local Chamber of Commerce and get a list of the networking opportunities in your area. Some social websites also provide links, resources and calendars for networking events. Design a business card, even if it specifies that you are seeking a new opportunity.
, AFC, is a financial educator and coach at聽聽in Winston-Salem, North Carolina.
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