We have seen many changes in the work environment over the past decade and beyond, with multiple layoffs as firms recover from the previous global financial meltdown. Talking of the high potency of losing jobs at such times can be devastating both emotionally and financially.
Life, health and disability insurance policies are benefits lost with a job loss. Thus one can be thrown into a financial tailspin if he or she is not well prepared for the situation. Here are a few tips on how to manage after being fired.
1. Accept the reality:
Accept the harsh reality that you have no job, you have no income and you have to start looking for a job all over again. These will then have to be taken over by a plan of action. What are you going to do to get through this situation? This is the first question you should ask yourself.
2. Understand your financial position:
Most people have a false sense of security where their finances are concerned. They all think that they have enough money to live on for the next year or the next few months and that this will give them sufficient time to deal with getting another job. Meet with your accountant and find out the true condition of your finances. You may not have enough money to support you for the next three months let alone one year.
The position of your finances will help you understand and evaluate what needs to be done next. Do you need to take up a temporary job like lecturing in a university to support yourself or your family while you work at getting an ideal job?
Do you need to take up loan? These questions once answered will help you chalk out a plan. Do not forget, while understanding your finances, you also need to assess your cash flow, your debts, your savings, and your assets.
3. Formulate a plan: this is the most important step in dealing with your job loss. Formulating a plan gives you a systematic and step-by-step guide on what to do and when. The first one being, getting your entire family involved.
This means informing your kids, your spouse, parents and in-laws that you are without a job. This will help them be supportive towards you and also will help them help you save money by cutting down on expenses.
4. Always prioritize your debts:
Knowing which bills are of utmost importance and which need to be paid first is necessary to avoid any financial problems right from the start. Expenses and incomes need to be proportioned. This helps you to know more about spending power.
5. Get the right perspective:
You have lost your job and are unemployed for the moment. It is a bad thing, but you need not look at it that way. Looking at it with a positive attitude helps and gives you the right perspective to deal with the situation.
To have the right perspective, you need to accept that bad things happen, that this is a temporary phase and will pass, and that the important thing is to focus on the things you have, not what you are missing.
Dealing with a job loss is not easy, it happens to most and to the best. The key to recovering is recovering with grace and dignity.