JOB LOSS
What if you lost your job tomorrow and couldn’t find more work quickly? What would you do? Since the recent big recession, that is a question we should all ask ourselves and prepare for it. Gone are the days of my grandparent’s generation where education, hard work, and dedication brought you security. Like a boy scout, we should all be prepared, just in case. Here are some tips to follow in case you experience a job loss.
NEGOTIATION
There are several negotiation points you can use to make losing your job easier. The first thing you should do is to ask your employer not to contest unemployment benefits. Having unemployment benefits will make your life much easier while you are looking for a new job. Unemployment benefits provide a percentage of your salary, but they only last 26 weeks. Also, negotiate a severance package or, at the very, least ask if you can cash out your paid time off or any other benefits you might have earned.
NETWORK
If you are leaving on good terms, ask for a letter of recommendation. Having a letter of recommendation in hand will be a valuable resource as you look for another job. Also, ask your boss if they know of any other position openings at another company. Remember the saying, “It’s not what you know; it’s who you know.” Not burning bridges and networking can help direct you towards that next opportunity.
CREATE EXTRA CASH FLOW
Hopefully, you will find another job right away. But if you don’t have emergency savings, now might be the time to think about some possessions you could sell to raise money quickly if you had to – do this thinking now before stress and depression cloud your thinking.
PREPARE AHEAD
We hope never to lose our jobs, but why not prepare ahead, just in case? Being prepared will save you a lot of stress during an already stressful time. Start now and set a goal to save enough in your emergency fund to cover your living expenses for 4-8 months.
Saving for 4-8 months of living expenses can be an overwhelming goal, and more than likely will take years to reach but don’t get discouraged. Instead, focus on small, mini-goals you can reach in just a few weeks. Breaking a goal into smaller pieces will keep you motivated and help you reach your overall goal. Perhaps you can save $25 a week by making some changes. In ten weeks, you will already have a $250 emergency fund! The critical thing to remember is never to give up working towards your goal!
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