More and more people start their day at work like everyday, only to be called into someone’s office to hear the phrase “I’m sorry, we’re going to have to let you you go.”
In today's world it doesn't matter if you went to a top university, have a bachelor or master degree or if you are currently stocking the shelves at Walmart. If you work for anyone besides yourself, someday, somewhere, you can hear the words "We have to let you Go with budget cuts"
Many schools teachers are too familiar with these words or many are becoming familiar with them as their Union Leaders instruct them to Stand Firm. Stand Firm they may however if they do choose to stand firm as many Union Auto Workers did they will find themselves in line at the food pantry.
We live in a different world today! Job security is gone.
You need to ask yourself hard questions as, What can you do too protect your families against outsourcing, pink slips, or having your hands in the faint of somebody else? It seems these days the person be it your superior, team leader gets their walking papers shortly afterwards. Nobody is safe in today's environment working for somebody else.
As you walk out to your vehicle with your cardboard box filled with memorabilia of your days at your job. You need to take a deep breath and realize the world is moving forward and so shall you.
Ask for Severance Pay
First off, if your employer doesn’t offer you any severance pay or benefits package, ask for it.
Your employer may offer you severance pay or benefits. Whatever they offer, ask for more, it can’t hurt, and every dime extra, every month of benefits like healthcare or health insurance coverage you can get is all to the good. Besides, the worst they can do is say no. If they balk at your suggestion without giving you an outright “no”, push them a little and see if they’ll up the ante. It they so no to more cash, ask for benefits. An extension on healthcare coverage or life insurance. At the very least they may be required by law to provide you with a list of resources and possibly paid retraining.
If you were lucky enough to get some kind of severance then the next step can be approached a little more leisurely and needn’t be as drastic. Remember, even though you have your application in for Unemployment Benefits, those benefits are substantially less than you are used to receiving from your normal paycheck. So you must think about giving your budget a virtual makeover.
Adjusting Your Budget
Make Time for Yourself
Now you are ready to head for home. When you arrive you should let the significant people in your life know. Don’t try to hide it. Just come out and tell them. It will affect their lives too so they have a right to know.
After you’ve done that you can move on to the next step.
Apply for Unemployment Benefits
You may find this distasteful and equate it with asking for charity or welfare, but it’s not. This a benefit provided for you and paid on your behalf by your former employer. There is nothing to be ashamed of in receiving unemployment benefits. Do it today. Tomorrow at the latest, as many states have a waiting period before benefits begin.
If you were lucky enough to get some kind of severance then the next step can be approached a little more leisurely and needn’t be as drastic. Remember, even though you have your application in for Unemployment Benefits, those benefits are substantially less than you are used to receiving from your normal paycheck. So you must think about giving your budget a virtual makeover.
Adjusting Your Budget
The value of a dollar changes when there aren’t any dollars coming in. Getting a handle on your budget and slashing non-essential spending is a good way to ensure that you weather your time without an income.
That new swimsuit and celebrity hairstyle…not this week you’re not. It might be time to take your Harley Davidson down to the car dealership and trade it in for a more affordable Ford. Eating out? Sorry, not this week either. Now I’m not saying you have to starve but get everyone on board. Learn how to make homemade party appetizers instead buying that expensive tray from the caterer. Eat frugally. Want to keep the dog? Learn how to make a homemade dog treat recipe. Learn the tricks that will extend the life of products you use everyday. That Kindle or iPhone you were thinking of getting? Postpone it.
Do you really need cable TV? A newspaper subscription? That’s why I’m not mentioning your internet. It can provide news, entertainment, phone service, email, job search and resume help, networking, you can even take an online course, etc. Keep the internet up as long as you can. But when it comes to online games get the free download. Better yet get the kids working their brains by doing a Sudoku puzzle.
Your savings and investments
With the country quickly heading for double digit unemployment rates, not only do you have to think about your spending but your saving as well. First off, since you no longer have an income coming in, stop putting aside. I know, I know, you need to save for retirement. Right now, without a job, you need all the money you have available to keep yourself fed, clothed, and a roof over you and your loved ones, not another 50 shares of XYZ company. If you absolutely must continue to invest, use short-term Certificates of Deposit. Start with the 3 month pay-date variety, and stagger your investments in case you need the money in the future. Once you have your income situation in hand then you can make more long term investments.
When it comes to your 401k and IRA investments, if it looks like it will become necessary to tap these – do not wait until the last minute, as these may take awhile to liquidate. However, touching these investments should be a last resort as you will incur serious tax and penalty complications. Perhaps losing as much a 50%.
You will need to decide if you are going to keep your current health insurance via Cobra. Usually it is a bad deal cost-wise, if your spouse works see if you can be added to their policy. Check with your life insurance agent to see if you can get a short moratorium on payments while you are unemployed.
If you are like most, your home will be your biggest investment. Can you make the payments? The one thing you don’t want to do is take out a loan, line of credit, or refinance unless it will significantly reduce your current payment. Check with your lender as you may be eligible under federally mandated loan modification for relief. Programs are literally springing up overnight so keep looking. If worse comes to worse and it looks like you will be foreclosed on, check with the lender regarding a short sale in lieu of foreclosure.
Decide Your Course of Action for the Future
Maybe it’s time to go back to school and get that degree you wanted. Maybe it’s time start your own business. Aren’t you tired of being at the beck and call of an employer? With no real security for tomorrow except at the whim of your employer.
If you decide you will begin the job hunt once again, get to it. Look online, network with friends, get the word out that you are available and ready.
On the other hand, did you know that most of the great corporations of today were started during the Great Depression? Why shouldn’t it be you with your picture on the wall as founder of the world’s next great company? Going it solo can be frightening and challenging. But suppose you love woodworking, wouldn’t you rather earn an income and spend your time doing something you love?
Speaking of time…
Make Time for Yourself
I recently heard someone refer to unemployment as fun-employment. What they meant was that now they suddenly had all this time on their hands and they had no obligations to an employer to worry about. They could go to the beach. They pick up that biography they always wanted to read from the library. Maybe you’ll check out the local art school and pick up a craft or two.
The whole point is, do what you need to do. Don’t get depressed. Look at it that this is a brand new start for you. Change your world. Change yourself. Become yourself and rediscover your values.
Keep a Great Attitude!
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