If you‘ve survived without getting laid off or fired, congratulations. The fact of the matter is that in these uncertain times of downsizing and outsourcing and companies going belly up, the threat of sudden unemployment is all too real. As bleak as this news might be, there is good news: with the right game plan, you can rebound quickly if you are laid off or fired. The following tips will discuss how you can successfully prepare yourself should the inevitable happen.
Get Your Financial House in Order
The first and most important thing you want to do is get your financial house in order. You should always have an emergency fund, just in case. This should range anywhere from three to eight months of living expenses that you set aside and use only if you become unemployed. If you’re already gainfully employed and haven’t started saving for a rainy day, start doing so TODAY. You also want to think carefully before making any major purchase, such as a new car. Carefully examine your current employment situation and if you have any concerns that your position may not be solid, then reconsider until you feel you are on more stable ground. Of course, the problem with layoffs is that in most cases you will not really know that you are getting the ax until the day arrives – despite the office gossip and rumblings from co-workers. In cases where the entire business is shutting down or entire departments are being eliminated you may receive advance notice, but in most cases you will not.
If possible, have an additional source of revenue besides your day job. Selling items on eBay has become a means for many to make a nice part-time revenue. Are you crafty? Sell your items at school fairs and craft shows. Tutoring, typing and many other jobs can be done in your spare time and can be a source of funds if you become unemployed. You may also want to consider taking a temporary assignment until your next dream job arrives. Assignments can range anywhere from a few days to a several months or even a year. Most agencies also offer job placement services in addition to temporary assignments.
If you get laid off ALWAYS negotiate for a severance package if one is not offered. Ask for four weeks pay for each year of service but be content to settle for two or three instead. As soon as you get the bad news, go immediately to your local unemployment office and apply for benefits. Any delay in filing for benefits may cause a delay in receiving much needed funds. Each state has different rules and regulations so make sure you carefully read the benefits rights handbook, which will be given to you when you apply for unemployment. And don’t be embarrassed to ask questions if there’s something you don’t understand.
If you have creditors, contact them immediately and advise them of your situation. Don’t wait until you have missed scheduled payments and amassed huge late charges. Most are willing to work out some type of repayment plan or offer a deferment or forbearance. When you contact them make sure you tell them that you are actively seeking new employment and that you hope to have a new position soon.
In part II, I will offer additional tips.