If you are one of the unfortunate people to suffer a layoff you understand how difficult things can be, both financially and emotionally. Something like a layoff is never easy to cope with, but should it happen here are some basic steps to remember:
1. Remember, you are not alone. Many people have been laid off and many other people will get laid off. It is in the forefront of news today, but companies lay people off all the time, not just in bad economic times. You will get through this.
2. Immediately go into survival mode because you do not know how long you may be without a job. Look at it like weathering a storm. This is the one time it is okay to make minimum credit card payments, temporarily stop IRA contributions, kids college contributions.
3. Eliminate luxury expenses because you do not need them. That morning cup of coffee or latte down at the local gourmet coffee shop - stop it. Taking all your shirts to the cleaners? Get out the ironing board again.
4. Creatively reduce necessary expenses. For example, let’s say you are under a two year contract for cable TV and you have to pay a significant penalty to cancel. Reduce your package to something less - there is typically no charge for that. Buy generic foods rather than name brand - they are usually 25% or more cheaper and often taste about the same.
5. Immediately apply for unemployment. Surprisingly, many people do not bother because they are either too proud or think they will find a job quickly. However, you are entitled to that benefit so use it. Every little bit will help during this time period.
6. Use all your resources to find a job, not just the internet. If you have a network of friends, use it. Maybe their company has a position and it is not posted online. Go to the library, check the newspaper and other local periodicals.
Being laid off is a huge discouragement, but is very important to put your plan in place immediately. Hopefully you will only be unemployed a short period of time but you cannot predict the future. The old saying, “hope for the best, but prepare for the worst” really applies here.
1. Remember, you are not alone. Many people have been laid off and many other people will get laid off. It is in the forefront of news today, but companies lay people off all the time, not just in bad economic times. You will get through this.
2. Immediately go into survival mode because you do not know how long you may be without a job. Look at it like weathering a storm. This is the one time it is okay to make minimum credit card payments, temporarily stop IRA contributions, kids college contributions.
3. Eliminate luxury expenses because you do not need them. That morning cup of coffee or latte down at the local gourmet coffee shop - stop it. Taking all your shirts to the cleaners? Get out the ironing board again.
4. Creatively reduce necessary expenses. For example, let’s say you are under a two year contract for cable TV and you have to pay a significant penalty to cancel. Reduce your package to something less - there is typically no charge for that. Buy generic foods rather than name brand - they are usually 25% or more cheaper and often taste about the same.
5. Immediately apply for unemployment. Surprisingly, many people do not bother because they are either too proud or think they will find a job quickly. However, you are entitled to that benefit so use it. Every little bit will help during this time period.
6. Use all your resources to find a job, not just the internet. If you have a network of friends, use it. Maybe their company has a position and it is not posted online. Go to the library, check the newspaper and other local periodicals.
Being laid off is a huge discouragement, but is very important to put your plan in place immediately. Hopefully you will only be unemployed a short period of time but you cannot predict the future. The old saying, “hope for the best, but prepare for the worst” really applies here.