Do you know what you would do if you or your spouse experienced a sudden job loss? For many families these days, this nightmare became reality over the last year or so. With so many people losing their jobs, you can’t help but wonder if they same could happen to you. To deal with this kind of fear, my family has come up with a plan of action for dealing with a job loss. Hopefully, we’ll never need this plan, but I feel a little better knowing that we have one.
If your family is suddenly hit by the unemployment bug, you may have to fight the urge to panic. On the day that the bad news hits, try to take it easy. Have a good cry; scream a little. Once you’ve had a moment to take in the news you can start working your way through your plan of action.
File for unemployment benefits. If you find yourself laid off due to no fault of your own, there is no reason why you shouldn’t file a claim for your benefits. You can always cancel the claim if you manage to get a new job quickly. However, there is often a delay in getting a claim processed, so you should start right away.
Take stock of your savings. Now is the time your emergency fund was created for. How long will your emergency fund last? This simple act may even calm some of your fears. There is great security in knowing that you have at least three months (or whatever your case may be) before you will start running low on funds.
Cut frivolous expenses. Do you have cable service? Maybe you have a regular lawn service? Any of these monthly bills can and should be cut when you become unemployed. By cutting your budget back to its minimum, you can extend the life of your emergency fund. Rest assured you can always reinstate these services when you find a new job.
Investigate your separation benefits. Most employees are covered by COBRA, the federal act that allows you to continue your medical, dental, and vision benefits (at your own expense) after you’ve lost your job. Find out how much that will cost and decide which benefits you will continue. You should also decide what to do with any retirement plans you might have had through your employer.
Get back in the saddle. It’s easy to get stuck thinking that no one is hiring and you will be unemployed for a long time. You can’t think that, though. Start applying for new jobs right away. Polish your resume. Email friends and family to find out if their employers are hiring. The faster you put yourself back on the job market, the faster you will find a new job.
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