Melissa Dawson is a long time member of the No Spend / Controlled Spend thread which started within the former MSN Money Boards and is now hosted on ProBoards. While not a traditional blogger you can see what else she is up to, or what is on her mind at her site The Lioness Den at http://honeylioness.proboards.com/
So your company is looking for ways of improving their net income. When sales don’t increase to cover the higher cost of supplies, insurance premiums and overhead they look at reducing staff. And that is where you now find yourself – the dreaded meeting with your manager who tells you they have eliminated your position.
So now what?
First, let yourself be upset. I don’t recommend doing this to excess while still at work, though it can’t always be helped. Hopefully you were able to maintain your composure until you got home. Losing a job is in the top ten of stressful life events. It’s normal to cry, rant, rave, panic and get angry. Once you get over the initial emotions it’s time to come up with a plan of action.
Some of you will be fortunate enough to receive assistance from your soon-to-be-former employer in the way of a severance package, re-training assistance or other types of compensation. Others will be handed a final check and a box to clean out your desk. Regardless, there are things you can do to help you manage the situation in a productive way.
There are many online resources out there that can walk you through the “hows” of looking for a new job: State unemployment benefits, resume building, agencies, networking and brushing up on your interview skills. But I would like to focus on what you do can on the home front in regards to your personal finances.
- If you haven’t done it in a while, now is the time to sit down with all your statements and bills. The idea is to not be overwhelmed by your numbers – but to take an objective overview of where you are today.
- Make a list of all outstanding balances and monthly minimum payments if applicable.
- Determine the bare minimum you need to meet your monthly obligations: housing, food, utilities, insurance etc.
- Talk to your family including your children, though it needs to be age appropriate. A seven year old can be told that Mom is looking for a new job and so sometimes we won’t be able to do some of the fun things we used to. A teenager can be told more and be a part of the family’s cost cutting program.
- Look at what you can cut right now. Sometimes we get used to thinking there are things we must have when actually they are wants and not true needs.
- Cable – contact your provider and drop the extended channel package. Change to their most basic package. Consider another company altogether. There are some great deals for new customers that can run for a year or more at reduced rates.
- Cell Phone – look into switching to a Pay As You Go plan. Unlimited texting is a luxury that you can learn to do without.
- Memberships – check to see if you can cancel your health club membership. Chances are like most of us you aren’t using it enough to justify the expense.
- Video Services – If you keep even a small cable package do you really need the Netflix account?
- Contact your utility and credit card companies to inform them that you are unemployed. Ask them what sort of hardship payment plan they can offer you.
- If you have a mortgage check out their website and get familiar with their hardship, or unemployment, programs well in advance of needing them.
I know some readers will think that approaching creditors at this point is premature. My position is that right from Day 1 you should go into cost cutting mode. While it’s a good thing to be optimistic about finding another position in a few weeks, the current reality is that for most people it will take a lot longer. It is also easier to negotiate with creditors from a position of strength – and that means before you start falling behind. The sooner you can reduce your expenses, the longer you will be able to get by with unemployment and savings.
There are however a few things that I would recommend spending money on:
- Review your vehicle’s maintenance records – if you are close to the service date get the oil and filters changed. Now is not the time to have to deal with transportation issues.
- Do you have a Flexible Spending or Health Savings Account? Gather up all your receipts and submit them for reimbursement before you lose those funds.
- If your insurance coverage will remain in effect for any length of time make appointments to have your teeth cleaned, go in for a check-up, talk to your physician and get refills of all your medications before your coverage ends.
- While you friends all think monsterkiller@website.com is a cool e-mail address, it does not look professional on a resume. Open a new, free, Yahoo account using just your first initial and last name to use during your job search.
- Once you have an updated resume get copies made on high quality paper.
- If you don’t have a warehouse membership, ask a friend who does to take you with them and stock up on items such as toilet paper, pet food or cereal. They are items you will need to buy anyway, so you should get them in bulk and at a lower price.
- Get a haircut. You need to look your best as you interview. And it’s an esteem booster.
- If you do not already have at least one professional outfit to interview in consider purchasing one. It can be as basic as a black shirt, crisp white shirt and a blazer.
By facing the situation calmly and being proactive with your expenses you can at least feel more in control of your situation. And that sense of empowerment will come through during interviews, improving the favorable impression you leave with those you meet.
For those wondering, I am speaking from personal experience and preparations. You see, I was laid off on the fourth of this month.
101 Centavos says
I agree with your immediate action approach. Sometimes a company’s moves are telegraphed enough in advance that some of this plan can be acted on proactively.
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