If you are a professional, then losing your job can be one of the most difficult situations to deal with. It’s always hard to find or maintain a good job and it’s even harder when you have to deal with your employment being terminated because of something outside of your control. This post will explore some ways in which you can cope with losing your job and what steps you should take if this unfortunate situation happens to come about for yourself or someone else that you know who is dealing with this issue.
Get your unemployment benefits
Firstly, get a copy of your employee handbook and check your eligibility for unemployment benefits. The first thing you’ll need is a copy of your employee handbook. You can request one from human resources or ask a friend who still works there to send it to you. If you don’t have access to an employee handbook and are not sure if you are eligible, call the unemployment office in your state before filing for benefits.
Secondly, do not quit until after receiving the final paycheck. It could cost both parties time and money trying to reconcile paperwork later on down the line (which will be especially annoying considering how much time has passed)
Make sure you have enough money to last you at least 6 months
When you’re out of work, it’s important to have enough money saved up so that you don’t have to take a job just because it pays the bills. You want to make sure you have enough money in your savings account to last six months. This way, if an opportunity doesn’t come along right away, there’s no need for panic or desperation. You can focus on developing new skills and doing some side projects while looking for work.
Find ways to increase your income
One way to cope with losing your job is to find ways to increase your income. If you’ve got a part-time job that pays well, try looking for another one for getting money fast. If you already have two jobs and are struggling with the stress of having too much work, consider adding a third part-time job on top of those two. You can also look into starting a side hustle, whether it’s selling things online via eBay or Etsy, renting out rooms in your home on Airbnb, or even selling items at yard sales and flea markets.
Make a list of all the expenses you need to pay
The first thing you need to do is make a list of all the expenses you need to pay. This includes your monthly bills, groceries, and any other expenses you have. Make sure to include savings goals as well as debt payments. If your budget is not balanced then this could create more problems for you down the line because it will be hard for them to find another job with less income than what they had before.
Create a budget
A budget is a financial plan that shows how you will spend your money and what you will save over time. It helps you manage your money better so that you can avoid spending more than you have and living outside of your means.
Sell some stuff you don’t need
Now that you have a plan for dealing with your personal finances, it’s time to start getting rid of the things that are weighing your down. We all have a few things in our lives that we don’t need and could sell or trade for cash. You should take advantage of this opportunity to cut down on clutter and save money at the same time.
Use credit cards wisely
Use credit cards responsibly. Credit cards can be a useful tool for people who learn how to use them wisely. It’s important not to spend more than you can afford, and to pay off your credit card balance in full every month. If you don’t have the money in your bank account to cover an unexpected expense or an unexpected bill, it’s probably best not to use a credit card at all.
Cut all your unnecessary expenses
Now that your income has changed, you need to cut all your unnecessary expenses. For example, if you’re currently paying $100 a week for groceries and now can’t afford that, then buy only the essential items and start eating leftovers or going out less often. If you’re spending $50 a week on entertainment with friends, cancel those plans and make new ones with family members instead. The same goes for shopping—if you’re currently spending $200 per month on designer clothes and accessories, cut back significantly (or stop buying them altogether) until things settle down.
There are so many free resources available to you
Take advantage of them! You may be able to find free food at a local food bank, free clothes from nearby thrift stores and your local Goodwill store, and even free online courses or tools that are designed to help you find another job. Make sure to check out your city’s library system as well as community colleges near you—they may offer classes on finding work or creating a personal brand (even if it’s not directly related).
Build an emergency fund
If you are currently employed and looking for a new job, an emergency fund is a great way to feel more secure in your financial situation. An emergency fund is exactly what it sounds like: money saved up in case of an emergency. You should have at least three months of living expenses stored away or enough money that if you lost your job and didn’t find another one right away, you would still be able to pay your bills even if they come due before getting paid again.
Losing your job is a tough blow, but you don’t have to just sit there and take it. You can develop the skills and strategies necessary to quickly recover from losing your job.
About the Author
Patrick Watt is a content writer, writing in several areas, primarily in business growth, value creation, M&A, and finance. Other interests also include content marketing and self-development. Say hi to Patrick on Twitter @patrickwattpat.