You may have just come back from a vacation, be financing a vehicle, or planning to purchase a new property. If you happen to find yourself in the situation, it’s important to understand that there are things that can be done.
Tighten your belt
The first thing you want to do when things turn south is stop the bleeding. When the income dries up, it’s important to curtail your expenditures. Things like rent, food, healthcare, and other expense items are difficult to reduce, but discretionary spending can certainly be reduced.
The first place to start is a budget. It’s important to understand your income and your expenditure, and how you can make do with whatever you have left. Things like a home telephone, cable TV, satellite TV, and eating out are luxuries. Avoid any unnecessary expense items since they will do nothing but put you further into debt.
If you have received notice that the company will be closing in a month or two, or that your position will be terminated in time, you may wish to consider short-term loans or bridging finance to help you get through a difficult patch. LendingTree is one such option that can make it easier for you to get the financing you need to make those big-ticket purchases.
It is a peer-to-peer lending network that has been in operation for over 20 years. It’s much easier than going to a traditional bank which is far more focused on bureaucracy and checks and balances than peer-to-peer networks. With this option, different lenders will compete against one another in trying to get your business, so it is definitely worth checking out if you find yourself in a bit of a bind.
Don’t get overly emotional
People who have been in the workforce long enough understand that losing a job, for whatever reason, is a real possibility. Truth is – no job is safe. Companies hire and fire people all the time. It’s part of the growth and decline business cycle, and sometimes it has absolutely nothing to do with your work performance.
Nobody denies that the impact of losing work is extremely stressful, jarring and destabilizing. However, if you’ve been in the workforce for a while, you know that it’s important to plan for any eventuality. Never put all your eggs in one basket, and don’t get overly emotional when it comes to work. Just as you found one job, you’ll find another job.
Allow yourself time to digest what has happened, but don’t let it overwhelm you. If you dwell on it, it will upset you. Chances are, you have heard musings of the company considering laying people off. It may come as a surprise that you are next in line, but take it in your stride. Don’t lash out at the messenger if you receive a pink ticket – stay on good terms with everyone because you never know who can help you in the future.
Be gracious for the time that you had working with the company, and ensure that your coworkers, supervisors, and managers are aware that you are available for future work. Be sure to have a list of names and email addresses of key personnel at the company so that you can contact them via email, LinkedIn, Facebook, G + or other social media sites in the future.
Shift your focus
All too often, unemployed people fall into the trap of ‘stinking thinking’. This is a negative mindset which is characterized by a pessimistic outlook on proceedings. To avoid such things, refocus your attention onto something positive – building a new career. The only thing that is guaranteed in life is change – everything else is uncertain. Shift your focus towards your long-term happiness and how you can work towards achieving that.
What’s in it for you?
What was the nature of your employment with the company? Were you a temp, a seasonal worker, a part-time employee, a full-time employee, a contractor, or a freelancer? This is an important question, because it determines your severance package, if any. Many companies today offer benefits packages to employees that they lay off. It’s important to know your rights because it determines things like healthcare, unemployment insurance, references, and the like.
If you forget to ask your employer for this information at the time of termination, it will invariably be provided to you in the letter you receive with your final paycheck. Be sure to contact the human resources department of the company for a letter of recommendation, and for any other queries that you may have.
Remember, terminated employees may qualify for government unemployment benefits. This will be less than what you are earning from your employer, but it’s designed to minimize the impact of loss of revenue. Don’t think of unemployment benefits as charity – you have earned the right to unemployment benefits by working hard over time.
