How to Manage After Losing Your Job

How will you manage if you lose your job? It seems unimaginable. After years of service to a company you thought was financially stable you've become one of the many layoff victims. You didn't do anything wrong. It's just that your company had to eliminate some positions, including yours. Now what?

First, take a breath. Take a lot of breaths. Then take stock. Take a long hard look at your financial circumstances. Evaluate your assets, liabilities, and short term income potential. Only when you have all the information will you be able to make a plan for managing the situation.

What is your expected income for the next several months? Were you given a severance of salary and/or continuation of benefits for any length of time? Find out what you will receive for unemployment income. If anyone owes you money, now would be a good time for them to start making payments or pay in full.

What are your liquid assets? Determine how much cash you have in bank accounts, certificates of deposit, etc. Do not include your 401K or other retirement accounts. Consider which personal items you are willing to sell at yard sales, on Craigslist or on e-Bay. If you had to move, would you really want to move all that stuff? Do you need all of your vehicles, especially the ones you are still making payments on?

Look at what food you already have in the freezer and pantry. Plan upcoming meals with these foods in mind, and shop sales for whatever else is needed. People are often amazed at what they find just from cleaning out the pantry and freezer.

What are your expected expenditures, such as mortgage, loan payments, etc.? Don't spend any money you don't absolutely need to spend. As much as possible, make do with what you have. If you really feel that you need something, attempt to purchase it used. Cook meals at home instead of eating out or getting take-out. You'll be surprised at how well you can live without so much cash flying out the door.

Naturally, you'll be searching online job sites for available jobs, contacting recruiters, and networking to notify everyone you know that you are available for employment.

Take a realistic look at the chances of finding another job in the reasonably near future in your current town. If this seems unlikely, get your house on the market. This is a difficult decision to make, but you need to set aside emotions for a little while and do what makes the best sense for your family's financial future.

Ultimately, you will find another job. Things may look bleak that first week after the layoff, but they do get better. It's scary to hear about the high unemployment rates, but there are jobs out there.

Finally, surviving a layoff is as much about attitude as anything else. Focus on caring for yourself and your loved ones. Be kind to each other. Be grateful for all the good you have in your lives. Attitude really can make all the difference.