With all of the unemployment figures going on, we all know someone who has been laid off, downsized, rightsized, top-grade, or just plain old let go. This is such a huge blow to all of our egos and sends many of us into a tail spin. Several people has contacted us and asked the question "what should I do financially when I have had a change in job status".
Well the first thing to do is to sit down with your spouse or a close friend and unpack your emotional bags. Get it out and process it. In many cases this is something that has happened to you based upon the economy and not something you have done personally. Even if it may have been something that you did, remember that "failure in an event, not a person". I know this is so much easier to say than to do. I know of one guy who went on a job interview 3 days after being let go and was still so upset with his previous employer that he talked about how bad of a company they were during his interview. Guess what? He did not get the job. So I would suggest getting it out of your system as soon as you can so you can move on in a healthy positive way.
Next, sit down and put together a new written budget based upon your new income level. ( we have the forms for free at www.lighthousefinancialcousnseling.com) Start trimming back things like the cable bill, cell phone bills, and eating out. It is very crucial to adjust your lifestyle before you lose your job or as you lose your job, not six to 8 months later. Do not spend any more money than you have coming in the door.
After this, we should work on paying only the minimum amount on any credit cards or consumer loans and save as much cash as you can. They say it may take 4 to 6 for every $10,000 your make to get a job. So if a person was looking for a job that paid $40,000 a year, it could take 16 to 24 weeks to get a new job.
You should contact each of your creditor and let them know you want to work with them during this time of crisis but you need their help by lowering your interest rates. Also contact your home mortgage company and see if you may be eligible for a "work out package" or a mortgage modification if you house payment is more that 25 to 35 % of your income.
Start looking for a job ASAP. Don't wait for unemployment to run out. Don't spend too much time looking on the internet for a job. Experts estimate that only 1% to 2% of the people find a job on the internet. (www.48days.com). Call friends, family, members and work contacts to let them know you are looking for work. Network as much as you can. Develop a list of contacts and keep track of who is sending you hot leads.
Stay connected with healthy friends and people who will support you and be honest with you when you need their support and when you need a good kick in the pants to get going.
Stay in prayer. Keep searching the Scripture to see what God may be trying to reveal to during this time of crisis. The verse I have keep repeating to my self is Philippians 2:3-4 Be anxious for nothing but in everything by prayer and supplication with thanksgiving, let your request be known to God and the peace of God which surpasses all comprehension will guard your heart and your mind in Christ Jesus. This has helped me during so many tough time. Maybe there are other verses that have helped you. If so share them with us.
