How To Recover From a Job Loss

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Once you have been laid off from your job you may be panicking about what you are going to do to survive the crisis. Many people who have lost their jobs need money right away. It takes work and planning, but you can come out of a job layoff without too much damage if you work proactively to look for a job. It will take some sacrifices in order to make it, but you can survive a layoff. Planning now can prevent you from making a career mistake in the future. 

Take Stock of Your Finances

You need to examine your finances. This is an essential step to surviving the layoff without going completely broke. You need to look at your emergency fund, your severance package and your unemployment benefits and consider how long you can make the money last. You should also look at your budget and trim out everything that you can. You may want to leave a little bit of fun money each month, since this can be relieve stress, but cut back everywhere that you can. Consider scaling back to the minimum cable bill and cell phone plan.

You can cut back in eating out costs, and on the amount of gas you will use.

Contact Your Creditors

Contact your creditors and other service providers to see if you can lower your monthly payments temporarily. You can defer your student loans when you lose your job. You may also be able to suspend your gym membership for a few months while you look for a new job. You may be surprised at the money you can save just by asking for it. You can ask for a lower rate on your credit cards. Additionally you may change your focus to paying only minimum payments on your debt, in order to make your money last longer.

A poor credit history can negatively affect your job hunt, so staying current is important. You can work on repairing your credit so you can find a new job.

Start Looking for a New Job

Focus on finding a job. You should be looking for a job like it was your job. You can spend the time you would normally be at work looking for and applying to job opportunities. If you have a focused regular effort to look for a job, then you are much likely to find it. Additionally broaden your search to include all the jobs that you may be qualified to do with an acceptable salary range. You may enjoy a different career path then you originally thought you would. You may need help updating your resume.

Additionally you may contact your alumni office to see if they can help you find a job as well.

Stay Focused

Try not to become discouraged. If the economy is sluggish it may take some time to find a job. Generally this is especially difficult is several companies in the same industry have had layoffs as well. If you are nearly out of money you may need to consider taking on a part-time job to continue to be able to pay the bills. You can also take a temporary job or sale things to raise money. You may also need to widen your search.

Focus on Recovery After You Find a Job

Once you have found a job, you need to focus on getting out of debt, and on building your emergency fund back into place. This will help you to be able to recover if this situation were to happen again. If you were unprepared for this layoff, you should take the time to learn from the situation. This will help you to be prepared if it were to happen again and reduce your financial stress.