Immediate Steps After Losing Your Job

Its one thing to hear the economy is in bad shape and unemployment is on the rise, but when you lose your own job, it becomes all too real and very frightening. The shock and despair may keep you from being able to do the things you need to do right away, so here are some things to think about.

1.) You need to take a look at your own financial picture. Immediately take a look at the bills you have due, when, and how much money you have in the bank and in cash. Now look for any money you might be able to tap into if needed, such as savings bonds, children's savings accounts (Eating now is more important than what you have saved for college, as you can always save when things turn around), whole life insurance policies you can borrow against or cash in, and loans others may owe you. Only consider taking money from your IRA as a LAST resort.

2.) Call ALL your creditors and tell them you have lost your job. Most will be willing to work with you, suspending any payment for a period of time. Student loans can be put on deferment until you get another job. Calling them before you get delinquent shows good faith with your debtors, and knowing you can skip a few payments will ease the stress on you for now.

3.) Apply for unemployment benefits. This takes awhile to get approved, so don't put off applying. In most states, this can be done on-line. You might also be able to get an idea of what your benefit might be online.

4.) If you have children, you might be able to apply for other government programs, such as food stamps.

5.) Cancel any unnecessary bills. You can do without cable, lawn service, cleaning help, etc. Eliminate any bills you can. Stop eating out, plan your meals, clip coupons, and buy groceries. Check online for a listing in your area for an Angel Food Ministries. This is a bulk grocery program that any family, regardless of income can participate in. It can save you on your food expenses. You do not have to be low-income to participate.

6.) Now is a good time to consider your talents. What other things can you do to bring in extra cash while you are job-hunting? Consider doing home repair for friends, babysitting, renting out a room in your home, lawn care, tutoring, painting, cooking, cleaning, errands, sitting with the elderly, writing for Associated Content, selling your clothes at a consignment shop, selling unnecessary furniture or electronics, etc. Use your imagination for ways to supplement your income.

7.) Swallow your pride. No one is "too good" to do any job that provides for his or her family. Immediately rain in all excess spending. You will need to make what money you do have, or have coming in (such as unemployment) last as long as possible.

8.) Gather your support system. Let your friends and family know of your situation. Network with your resume. Call previous co-workers and tell them you are back in the job market. Talk to people you know in similar or related businesses. "Knowing someone" is always a good way to override your competition.

9.) Keep a daily routine. Get up, shower, dress, check online for jobs you can apply for. Keep your resume polished and ready to send. Don't isolate yourself and allow depression to take hold. Do what you can to keep moving your life forward.

10.) Remember you are not a failure because you lost your job, and you are certainly not alone. With unemployment reaching record numbers in most states, chances are you already know other people who are in the same situation.