During tough economic times, it’s natural to worry about job security. Almost no one is completely safe from the possibility of being laid off. I even know a couple who both lost their jobs on the same day.
I’ve seen a lot of advice online about what to do after being laid off, but that’s a reactive approach. It doesn’t offer the best protection for you, your family, or your finances. A smart household manager doesn’t wait to figure out the next steps, especially if they’re the main breadwinner.
It’s important to take a proactive approach to minimize disruptions and impacts. Everyone’s situation is different, so no two plans will be exactly the same. Here’s my plan for staying employed:
1. **Prioritize Your Emergency Fund**
Serious household managers ensure they have at least three to six months of living expenses saved. This might mean cutting back on vacations, cooking at home, and delaying big purchases until the fund is fully stocked.
2. **Expand Your Network**
Networking is crucial for job opportunities. Make connections whenever possible. Join social networking sites like Facebook and LinkedIn. It might not always help, but it certainly won’t hurt.
3. **Apply for Unemployment Insurance Benefits**
It sounds obvious, but some people forget to do this. Make sure it’s on your list.
4. **Take a Step Back**
Take a week or two to set aside emotions and think about your future. Consider questions like:
– Should I look for a job with another company or become self-employed?
– Am I willing to relocate my family?
– Should I become a consultant or explore new business opportunities?
5. **Reassess and Reprioritize**
Review your spending and figure out how long you can manage on your severance, unemployment benefits, and savings. If you’re the sole breadwinner, your spouse might need to take a temporary job to help out. Avoid using credit cards to cover income gaps. Also, try not to dip into your 401k to avoid tax penalties.
6. **Consider Delaying Your COBRA Decision**
COBRA allows you to continue your health coverage after being laid off, but it’s expensive. You have 60 days to decide, so don’t rush. You might find a new job before the deadline, saving you from committing to costly coverage.
7. **Treat Your Job Search Like a Job**
After your rest period, treat finding a new job as your full-time job. Get up at your usual time, dress professionally, and spend your workday job hunting. Focus on the future and the new opportunities ahead.
By taking a proactive approach and having a plan in place before a layoff, you’ll be in a much better position than if you wait until after it happens.