How to Prepare for a Job Loss

by Shenron on October 6, 2009

Hopefully you haven’t been asleep for the past few months and missed the fact that the current global economy is practically in free-fall. While things are getting a little better for small businesses and corporations, many of the regular everyday employees out there are still losing their jobs left and right. Approximately ten percent of the entire U.S. population is jobless. It really isn’t fair to have to let anyone go from a job but it’s just simply not practical to keep people on board if the company is going under and will lose everything if they don’t. Jobs used to be the most secure thing in your life, now they’re as vulnerable as ever. Today we’re going to look at how to prepare for a job loss should your employer have to unfortunately let you go.

Job Loss1 How to Prepare for a Job Loss

1. Start saving: You should always be saving money, but if you think you’re especially vulnerable to be let go, save as much of your paycheck as possible. This means cutting out Starbucks in the morning and McDonalds for lunch. Those few dollars every month add up to a lot. Set up a saving account if you haven’t already and make sure to not touch the money in your account unless it’s an emergency. (No, drinks with your friends is NOT an emergency).

Job Loss How to Prepare for a Job Loss

2. Look elsewhere: If you’re right on the cusp of being fired, start looking for another job before you actually get the boot. Being ahead of the game will help you have a better chance at a new position than your other colleagues. You may not be able to pursue anything just yet but at least sending in your resume to new potential employers so they have you on file is a good start. But, unless you want out of your current job because the stress of not knowing your day to day status, don’t accept any other job offers.

3. Unemployment Money: This step of the process might take a little more effort but it will be very worth it when the time comes for you to need it. Start off by writing down all of your monthly expenses that are crucial to your day to day life. These things include insurance, food, utilities, and your mortgage. Don’t put in extra little bits and pieces just yet. These things should be the bare minimum. The next step is to call the local unemployment office and see how much money you can claim each month based on your current salary and expenses.

If you get an unemployment plan in place and are able to determine how much money you can claim from the government each month, you should be able to get by for at least 3 months. Assuming you have some money in savings, using those funds can more than likely help you get by for another 3 months on top of the original 3. And if you started looking for jobs and had your foot in the door before you lost your job, you should be able to make your way back into a steady nine to five in no time. Of course, sometimes things don’t work out that way and you can be left without a job for longer than six months. But hopefully you don’t wind up in a situation like that and you will be able to use the tips above to get yourself back on your feet within a year.

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