Dealing with Job Loss

Every other week it seems I am hearing of another person who lost their job. It doesn't matter what industry someone is in, how long they have been with a company, blue collar, white collar. It does not matter. The layoffs are happening without discrimination, and you have to wonder when it will all start to ease, or if we should brace ourselves for things to get worse before they get better.

If you find yourself out of a job, it's best not to panic. At the same time, it's also best not to blow everything off and throw a party every day for three weeks straight.

Here are some suggestions of things to do and some things not to do if you find yourself out of work like so many other people today.

Dealing With the Boss: So your boss just told you you're out of a job. The company is downsizing, times are rough, blah, blah, blah. Whatever the reason, you think it's a pretty lame reason. You've been with the company for five years and expended all of your energy coming in early and leaving late sometimes, and now the company is cutting the cord. How dare they, right?

Well, before giving your boss the finger or shouting expletives on your way out, you may want to consider a more graceful approach to leaving. Think about it, if you leave with a little bit of dignity, you may be able to garnish a reference from your boss for a future job.

Don't burn bridges when it comes to work, because you never know if you will have to come crawling back to an employer later on down the road. Don't come back with your tail between your legs. It's not the best feeling.

Consult Human Resources: Before you leave, talk to someone in Human Resources. Get the scoop on severance packages or ask about what sort of assistance - if any - your (soon to be former) employer offers employees.

Also, your HR representative will probably be able to give you information about applying for unemployment or other types of government aid.

401(k): If you were lucky enough to have worked for a company that offered a 401(k), try not to cash out your stash. In fact, pretend that money does not exist. Oftentimes, people find themselves out of work and don't see new work on the horizon, so they cash out their savings. If you cash out, you pay a penalty and don't get back all of your hard-earned money. Additionally, this money is supposed to be for your retirement.

If you are thinking about dipping into your 401(k), proceed with caution.

Spending: Resist the urge to splurge. Some people who find themselves out of work, get so down on themselves, they decide to make themselves feel better by blowing what little money they do have in savings at the mall, on trips or other spending binges. Don't do this. Not only will your spending high last for just a few seconds, but you'll find yourself in a worse off place than before with no money.

Also, get yourself organized. Make a list of what you actually need and figure out how to reduce your expenses. You'll come out on top for doing this, because once you get a job and have a steady income again, you will find yourself spending less and saving more.

Avoid Credit Cards: On that same note of resisting the urge to splurge, also resist the urge to charge purchases. If you find yourself pulling out the Visa at the register, you had better ask yourself if what you are buying is an actual necessity. If it's not food, you may not need it.

Additionally, if you are out of work and have credit card debt, call your creditor and see if you can arrange to have lower monthly payments. Whatever you do, don't stop paying your bills; you could end up ruining your credit.

Get to Work: Out of work? Get working on that resume of yours. Freshen it up, rework it and start sending it out. Don't be a snob either when it comes to employers. Look for anything so that you can start generating income. I've heard of people who have held out for the same high-paying job and title that they had at a previous employer. The opportunity doesn't come. Meanwhile, their bills continued to stack up. Unless you have some serious cash reserves, you may want to think twice about being a snob when it comes to work.

Stay Upbeat: Don't become so hard on yourself that you talk yourself into thinking that you will never find work again. Try to be positive and realize that eventually something will come along. You just have to create the opportunity for that to happen. Be positive and be proactive.