When you lose a job, you lose so much more than your source of income. You also lose a part of yourself. You lose a fraction of your self-esteem. You can even lose hope. Job loss and debt isn’t what you had planned. Soon you’ll be thinking of extended unemployment and (hopefully not) even unemployment bankruptcy. But everything is not lost as of yet. When you receive the news that you will be cut later in the year, blow off some steam. But after that, plan. That is the best thing to do after receiving that news. It’s a good thing that you are informed earlier because then you will be able to prepare yourself and your family.
Don’t keep it a secret
You may find it hard to confess to your spouse that you will be jobless in the following months. No one wants to give out bad news. It is hard even thinking about the impending hardship. When your share this information with your spouse be honest and tell him or her everything you know. Many people who don’t share this news with their spouse earlier end up regretting that decision. The only advantage you get at this moment is time. You have time to plan how it will be the next few months. If you choose to keep this a secret from your spouse, he / she won’t be holding back on spending. She won’t be able to help with the job loss and debt management. Also, keeping the secret is an additional burden for you.
Plan and Make Changes
If you have a family, it is harder for you because there are more people to think about other than yourself. But the more reason to start earlier and plan ahead. Planning involves laying everything on the table. Calculate your total debt, your payables each month, including your mortgage. Calculate your daily and monthly living expenses (food, clothing, etc.). Find out how much you have saved in the bank, how much you have cash in hand. If your monthly expenses are about $2000, the next step is to cut back.
List everything that makes up this $2000 and eliminate the things you don’t need. Eliminate anything that is more of a luxury rather than a necessity. This includes subscriptions to magazines, cable, monthly fine dining, etc. Calculate how much you can save and stick with your new monthly budget. Determine too which debts to pay first (always those that you acquired earlier). Calculate how long you will be able to survive with that budget until your finances run out. After this, list all the possible options you have to generate income. The impending job loss and debt management will be a challenge but if the burden is shared, it will be easier.
Update Your Resume
Keep you resume up to date and start job hunting. Send out job applications as early as you can. If you’re really lucky, you may even have a new job just by the time you lose your job. It helps to think positive. Always keep in mind that you will have a new job. Never get tired of sending applications too. Scour the newspaper for job openings. Call up friends and relatives for a possible job. Yes, asking help from your family may just be a possibility.
The main things to remember here is to plan well and adhere to the changes. Nothing is permanent so trust that job loss and debt is temporary. Everything can only get better from here.
