Money Saving Articles

What to do if you’re about to get laid off

Even though our economy has turned around, layoffs are still a threat to many Americans. If you’re about to get laid off (or fired), here are some things you can do to lessen the blow.

Evaluate your Finances

Reassess or create a budget that cuts out as many luxuries as you can – your daily latte, pedicures and late night fast food runs come to mind. Figure out where your debts and assets stand, should you work quickly to sell an expensive car before you get laid off?

Now is also a good time to look into cutting back on your monthly bills. Instead of downgrading or eliminating your services, enroll with BillCutterz to save money without sacrificing service.

Stock up on Cash

Getting through a month or two or more of unemployment on credit cards is not a good way to go. Interest rates will negate your frugal lifestyle. Spend some time while you’re still employed to stock away as much cash as you can. Find a savings account with the highest interest rate you can or maybe even a 3 month CD for a good portion of your cash.

Look into a Refinance and Unemployment Insurance

If it makes financial sense for you to refinance, then go for it. You will probably not qualify for a refinance on your mortgage after you’re unemployed so now is the time to do it.

Another thing to look into is unemployment insurance for your mortgage, which pays your monthly payment if you lose your job (but not if you quit in most cases). Policies will vary so look into them extensively or ask an insurance expert. Find out the length of waiting period, how much they’ll pay, etc. Mortgage insurance may not work for you or it may be the best insurance policy you can ever get.

Ramp up your Networking

Join as many associations, groups and memberships as you can. If you haven’t been networking, now is the time to start and even if you have, do it more. Make friends and professional connections – the old fashioned way or via social networks or both. Now is also a good time to make sure you have a presence on LinkedIn and a clean, possibly private profile on other social networks.

Figure out your Health Insurance

If your current insurance is through your employer, you are about to lose your benefits, but you can continue coverage through COBRA. However, it will be expensive. If you have a clean bill of health, you should be able to find private insurance at a decent price, but if you have any preexisting conditions, you should try to stay on COBRA as long as possible.

If you’re a parent, your kids might qualify for temporary health insurance through the state or federal government. You can ask the local Medicaid office or even the unemployment department.

Call the Unemployment Office

Unless you have significant savings, you will need to draw from unemployment. Call your local office and see what kind of stipulations are in place and when you’ll be able to receive help. It will vary depending on a lot of factors so ask them about your specific situation.

Start Looking for a New Job

Looking for your next job is a no-brainer in this situation. Peruse the job boards, reach out to your network and see who’s hiring. This is also the time to reevaluate your line of work. Is it time to switch directions? Get additional training? Maybe your industry is moving toward automation or outsourcing and you want to look into accounting apprenticeships or get certified as a mechanic. Whatever the case may be, it’s time to start looking for your next job.

One Response

  • Posted by Crystal on Jun 20, 2011

    Networking is such an important factor these days, and especially so when looking for a new job. Having a profile on Linkedin is almost mandatory.

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