How to Survive an Unexpected Job Loss
Often when people’s jobs are in jeopardy there will some sign or warning of their pending unemployment status. If your performance is less than desirable, you have a conflict with the boss or coworkers, or the company has announced an impending lay-off or downsizing, youmight be aware that a “pink slip” is most likely in your future and you have an opportunity to be proactive with your money and future job search.
There are situations, however, when you might be completely blindsided by a sudden job loss. If the company has to shut its doors for financial reasons, such as back taxes or a devastating recession. Or in the case of a merger, the decision of who to keep and who to let go may be out of your boss’s hands.
In any event, few people are financially equipped to deal with a sudden job loss. Much as financial experts advise you to have six months income in the bank for emergencies, in tight economic times that is not always feasible. Many live paycheck to paycheck out of sheer necessity.
What to do to survive an unexpected and immediate job loss:
- File for unemployment benefits
The first thing to do after clearing out your desk and punching out for the last time is to stop by your local unemployment office and file for benefits. In most states, you will begin receiving checks after 60 days if you qualify and the unemployment compensation will be retroactive back to the date you applied. The sooner you establish your unemployment file, the sooner you will be receiving emergency funds to tide you over until you are re-employed.
- Eliminate unnecessary expenditures
Cut spending to the bone. Analyze your bills, pay only the minimum monthly requirement until you are more financially solvent and eliminate any expenses that are not basic necessities. Cancel costly cable channels on your television, fees for fitness centers, hobbies, eating out and any other frivolous activity. Survival is the order of the day; when you have obtained another job, you can easily reinstate your previous comfortable lifestyle.
- Convert excess possessions into cash
Like most consumers, you might have an abundance of possessions that are not necessarily being used and can be converted to cash. Take inventory of your basement, attic, closets and storage areas. Have a yard sale, list big items on Craig’s list and collectibles on E-bay.
- Obtain a part time job
A part time job might bring in some needed cash, but that is only a good idea the hours do not interfere with your job search. There are many temporary positions in fast food venues, retail stock rooms and all night food chains, to name just a few possibilities.
- Network
Put pride aside and let everyone you know be aware of your unemployed status. You never know who might have connections to help you obtain a new job. Update your resume and be ready to pursue any opportunity that arises. Stay in touch with past coworkers who might share their own job search success with you. Spend time each day furthering your progress in your job search.
- Volunteer
Sometimes volunteer work can lead to gainful employment. If your unemployed status turns out to be long-term, volunteer in some capacity to ward off boredom and help you to feel productive. It is easy to become discouraged and depressed when you are actively seeking employment in a tight job market, and potentially suffering rejection in the process.
Following some of these practical suggestions, maintaining a positive attitude and diligently persevering, will enable you to financially and emotionally survive an unexpected and sudden job loss.
