About a year ago I found out that I was getting laid off from my job. I had been with the same company for a little more than 8 years and had gone through 2 lay offs already, but I had been,(after a few months at home) lucky enough to find other positions in different departments. This last one came as a complete shock to me because I thought this position was a long term one and not tied to any grants. I was frustrated but I knew I had to make a plan. My first decision was to not pursue another position within that same company. It was time for me to move on.
I was very unprepared for my first lay off (post grad degree). I had only worked for a year and I had only a little bit of money saved, so I relied heavily on my credit card. I found another position within the same company in about three months. Luckily, this time, I had discovered Dave Ramsey at that point and so I went into storm mode and saved some money. This time again I was unemployed for 3 months. Let’s fast forward to this last one, which lasted 10 months. Yikes!
Below are some tips and things I’ve learnt from being laid off 3 times in 8 years.
Do not panic
The worst thing you can do is to panic. We tend to make rush decisions when panic sets in. I will admit that it is a terribly scary experience but you would want to take some time to process what has happened. Perhaps binge watch a few shows, take a few mid afternoon naps and then jump into action.
Reevaluate your budget
If you have a budget, reevaluate it. You are going to go into storm mode. Think of what services or subscriptions you can cancel. What things you can do without for now, example if you have a clothing budget or an eating out budget you will have to let go of those for the time being. You are going to redefine your needs vs your wants.
If you do not already have a budget, it is time to create one.
If you have debt, you will have to pause the debt snowball or avalanche, or whatever debt repayment method you are using. At this point you want to save as much money as possible so pay the minimum on each debt account ( to keep it current) and put the extra into savings.
If you cannot afford to make the minimum payments, contact your creditors to see if they can work out something for you.
File for Unemployment Benefits
If you live in a country that offers unemployment benefits or compensation apply as soon as possible. Make sure you familiarize yourself with the rules and regulations.
Start job hunting
Update your resume/CV. Think about what you want your next job to be. Is there a particular skill you need to polish or learn? You might be able to find some free courses online. There are also some local adult education classes for a small fee.
Find or develop (an inexpensive) hobby. A lot of people’s hobbies end up becoming side jobs or even a new career. Or just something fun to keep busy.
Give yourself a break
Do not be too hard on yourself. This is not your fault at all. Take the time to do things you didn’t have the time to do before due to work. Take more naps!
Do you have any others tips and suggestions or perhaps questions?