Don’t Bury Your Head
A layoff will ultimately mean a change to your spending habits until you secure a new source of income. Here are five tips to become more financially stable while seeking new employment.
Negotiate a Severance Package
If you know a layoff is possible, research your legal rights as an employee to better prepare yourself to negotiate during the lay-off conversation.
Calculate Your Spending
Make a list of your monthly expenses in order of most expensive to least expensive to identify your biggest expenses and purchases that can be deferred or cheapened. Daily coffee store trips or happy hours might have to become a thing of the past to keep more money in your account. If you have loans or credit card debt, it might make financial sense to consolidate them into one monthly payment.
Once you have outline your financial picture, prioritize your spending to avoid running into a situation where you do not have enough money for important expenses.
Apply for Unemployment Benefits
You may meet the criteria for certain government programs and unemployment insurance. The Department of Labor provides information on available resources on eligibility and how to file for benefits.
Previous financial crisis have left millions of Americans unemployed and they’ve lived to tell about it. In a tough economy, becoming unemployed is not always a reflection of your work. Staying positive and having the right attitude will make the job-hunt more productive and effective, and will make you more appealing to potential employers.
Getting laid off is hard, but you can lessen the long-term financial impact by taking control of your budget right away. Here are five steps to keep a job loss from becoming a financial disaster.