A layoff can take you by surprise. However, being prepared to deal with the possibility of one happening is the best way to avoid disastrous consequences. Our expert credit councillors have helped many Edmontonians through difficult layoff situations and have some excellent advice for you.
Check out our related article, TOP PLANNING TIPS TO AVOID A FINANCIAL EMERGENCY.
Here is how to get through a layoff by preparing for the worst-case scenario and how you can get yourself back on track to financial freedom!
The best way to mitigate the impact of a layoff is to be ready for it. Some people may have a second revenue stream to fall back on, but many do not. Here is what you should do when you feel like layoffs are on the horizon.
1) Reduce your expenses. Your first step should be to cut every nonessential cost. That means everything except rent or mortgage, food, minimum debt payments and basic health needs such as medication. Reduce entertainment expenses such as dropping Netflix or cable subscriptions and switching to a cheaper phone and internet plan.
2) Have an emergency fund. Extra unused money you’re not spending on necessities should go into a savings account. It may take several months to build up an emergency fund but keep at it every month. It may take time to find another job, so plan to have enough money to survive for at least three months.
3) Use your connections. Your personal and professional networks may turn out to be invaluable resources when it comes to securing a new job. Make a habit of updating your resume regularly and attending networking events. Having a plan B could save you time and stress down the road.
4) Have your resume ready. Get your resume and references together if you think there is any chance of being laid off. The faster you can get looking for work again, the quicker you can earn money. Having a resume will let you get back on your feet faster.
Being prepared is one thing, but it may not be enough. Here are some steps to maintain financial stability while looking for another job.
1) Apply for unemployment benefits. Federal employment insurance can help you stay afloat until you find work. You may also be eligible for Alberta’s income support program.
2) Renegotiate payment agreements. You may end up having to prioritize specific bills over others. You might need to renegotiate some of your payment arrangements in such a case. Debt management is almost as important as finding a new job. You may also want to consult a credit counsellor.
3) Consider working part-time. Getting part-time work is often an effective way to relieve financial pressure until you find a permanent position in your field.
4) Reevaluate your situation. Sometimes, getting a layoff can be the catalyst that creates positive change in your life. It can be an excellent time to evaluate where you live, what you are doing for work, and where you want to be. Is it time for a move or career change?
5) Be calm. Losing your job can be very traumatic. It can make your financial future uncertain, which is very stressful. One of the best ways to deal with that stress is to keep a regular schedule looking for new work. If you stay busy applying for jobs, networking, and improving your skillset, you’ll have a new job sooner than you think.
While being prepared is one of the most important things you can do to survive a layoff, seeking credit counselling or debt help service is also a good idea. Fox-Miles & Associates Inc. provides credit counselling and debt management solutions to Edmonton, Sherwood Park and Spruce Grove. Contact us today for a free consultation and find out how we can help you.
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