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When 44-year-old Dele lost his
job just three weeks before Christmas, his first reaction was one of panic. He
had worked in a construction company for 12 years and assumed that he had a
stable job for many more years. Dele was his family’s main breadwinner although
his wife worked part-time. They had two children under six and the usual rent
and other bills to pay.
Job loss ranks as one of life’s
most challenging events and it hurts at any point during the year, but during
the season of “good will to all men,” it tends to have a much more devastating
effect on people when it happens at such time of the year. Some of the issues
involved include adjusting your finances, looking for a new job, and coping
with the emotional and social impact of your new situation. But even if you
failed to anticipate this sudden change in your circumstances, here are some
practical steps to take with a clear positive outlook if such happens.
Don’t panic
When you think about all your
bills and the monthly expenses you have to face without a steady income, it is
easy to despair. Remain calm and do not rush into any major financial decisions
whilst you assess your situation. Even if you are eligible, be cautious about
dipping into your retirement savings account.
It would be much easier to deal
with both financially and emotionally if you’d prepared for the worst by
planning ahead with an emergency fund or insurance. The importance of an
emergency fund becomes glaring in situations like this. Do you have any
savings? How long will it last based on your monthly bills? If you have been
able to set aside say six months of your income in a high yield money market
account, you will be able to settle some of your bills and relieve some
financial pressure while you look for a new job. But if you have always lived
from month to month, this may not be an option.
What do your full entitlements
amount to?
If you have no savings and is
fortunate enough to receive severance pay or other benefits, use these as a
bridge to get over the difficult period. Spend carefully, and do not use all of
your entitlements to make large payments as you might have to live off that
money for what could be an extended period of time. Don’t let such funds lure
you into complacency – actively seek a new job.
Develop a new written budget to
cover a period of say six months and longer based on your savings and any
expected funds. How much will it cost to maintain your family, your home and
lifestyle? Keep your family members fully in the picture so they too can adjust
their expectations about what you can afford. Cut back on non-essential
expenses. Naturally, your priority will be housing, food and utility bills. You
will need to restrain yourself from adding on excessive expenses during the
Christmas period.
Try to avoid taking on additional
debt except for critically important expenses that cannot be delayed. Whilst
more debt can temporarily disguise your true financial situation, it will only
make things worse. If you are unable to fulfill your financial obligations,
such as your mortgage or car loan, approach your lenders; it may be possible to
negotiate new terms to adjust your payments for a limited period of time. It is
better to approach them yourself rather than to fall behind with your payments.
If you default on your home or vehicle loan, your bank will take steps to
re-possess your property.
Stay socially connected
Some people feel embarrassed or
inadequate after losing their job. Don’t withdraw and let negative feelings
stop you from taking important steps; you need your network now more than ever
before. Reach out to family, friends, ex-colleagues and your network and spread
the word that you are in the job market. Your CV should be carefully updated
and circulated. Use holiday social gatherings for networking where you might
hear about new openings and connect with people who can help.
With the sheer number of people
looking for jobs, you need to cast your net wide, and not just for the same
type of job. Be practical and flexible and don’t be fixated on a specific role
or job so you can increase your chances of finding work. Consider temporary or
part time work that will generate income and give you the time and flexibility
to attend job interviews and actively pursue a more permanent position. This might
be a time to upgrade your skills, or go back to school which will all add to
your resume. Your hobbies, talents and skills and other interests may be
converted to a business as they offer serious possibilities for income.
Apart from the financial issues
associated with job loss, there are usually emotional and personal aspects that
are too often ignored. Whether yours was the only position that was cut, or an
entire unit or department, the feelings caused by being laid off are largely
the same regardless of the circumstance. Many people experience a loss of
self-esteem, a sense of failure and even depression after retrenchment. But
it’s important to take your next steps based on clear rational thought, devoid
of emotion.
As difficult as this may sound,
consider the loss of a job as an opportunity to re-evaluate your future and,
potentially change your career or start a new business. Losing your present
employment may well be the impetus, just what you need to take a fresh look at
your life and re-define your goals. Often, it is times like this that propel
people into greater things. Punch
