You do not want to entertain the thought of an imminent job loss but sadly, this is the case for some consumers. There are not a lot of permanent things in life and your job security is one of them. Yes, you might get a handsome severance pay depending on the circumstances of your job loss. However, the idea for a lot of people is to stay in a job they love to do for a long time.
You want to stay in your job for the consistency and financial stability it provides your finances. There are some people who choose to put up their own business or chase a dream they have had for a long time and earn money from it. Losing your job signifies losing the ability to bring in money into your household on a regular basis.
This is the most common underlying factor why people are scared when they hear of an imminent job loss. There are some who are more concerned with their social standing and would not like people to know they are out of a job. Nevertheless, most Americans would be more concerned with the financial impact it will bring their household.
There are even some people who are trying to hold down two jobs just to make ends meet. Two paychecks are not enough to give some people a comfortable life. CNBC shares that about 3 out of 10 American workers take on that second job to pay for their monthly living expenses. What more if they lose one of those? There is a very big possibility of getting behind on their financial obligations. They could miss some payments to favor the expenses they need to live on a daily basis. If you know that you are in danger of losing your job, here are a few of the tips you can look into to help you through it.
Undoubtedly the most challenging things to do but one of the most important as well. When you are facing an imminent job loss, you need to check your emotions and calm down. There are some companies where news travels fast and you get to know about it first before management calls you in to break the news.
Rule of thumb is that if it did not come from management, it is just office gossip. This is the reason why you need to avoid knee-jerk reactions. This is because these are the things you could do which you might regret in the future. You might storm your manager’s office shouting at the top of your voice demanding to know the truth.
If the gossip was false, you only put yourself in a bad light. If it is, you put your manager in a dilemma and this will not go well when you start to ask for a recommendation letter. Calm down and assess the situation carefully. Get a feel of the office mood but continue with your tasks. Try your best to not let unverified news affect your output.
Audit your emergency fund when faced with imminent job loss
If you are facing an imminent job loss and you have verified the news to be accurate, you need to take a look at your reserve fund. Check what your emergency fund level is because this will be your main source of financial support if you find yourself in-between jobs. Your expenses cannot wait for you while you look for a new job,
This is also one of the biggest reasons why you have an emergency fund in the first place. It is meant to help cover for your expenses in situations where your income is affected and job loss is one of them. You could also be in a medical emergency or in an accident where you cannot report for work. These are some of the situations where you would rely on your emergency fund.
With the amount, check how long it can cover for your expenses. This is how long you have until your emergency fund runs out. This gives you an idea of what your timeframe will be in terms of finding a new job or source of income. Once your emergency fund runs out, there is a good chance you will start relying on debt to get by. When this starts to happen, it won’t be long until you find your finances in a spiral going down into unmanageable debt.
Make the necessary transition
If there is an imminent job loss, you need to start making that transition as early as you can. The earlier you can get to it, the smoother the transition can be. One area you have to focus on is identifying ways to cut down your expenses. This is an important step because once you succeed in doing this, you can stretch your emergency fund for a lot longer time. This affords you more time to look for a new source of income.
To help you cut down on expenses, you will rely heavily on your household budget to see where your money goes every month. It should list down all your expenses from the biggest payments you make every month to the smallest ones. Take a look also which ones automatically renew every month and assess how important they are at the moment.
If you rarely use that gym membership in your card, it might be a good time to cut it off. You can always go for a run in the park or join free exercise classes near your place. There are also a lot of people who choose cord-cutting and rely mostly on their internet connection for streaming their favorite movies and even tv show. The idea is to cut down on areas you are not really using and putting that money over to living expenses.
Steps to take to look for a new job
The first thing you would be thinking about when there is an imminent job loss is to look for a new job. Here are some tips to keep in mind to help increase your chances of finding work and keeping your finances intact.
Update your credentials
You need to start updating your credentials which will serve as the primary document you will use to apply for a new job. Look up the most recent version you have and start adding job experiences and notable skill developments you have developed in your time with your current company. Make sure you tailor-fit application letters for each company you apply for. This is because sending out template letter rarely work and potential employers can see this as a lazy approach. Fobes even shares that it is a good idea to send out concise credentials to increase your chances of being considered.
Get in touch with your network
One of the social assets you can tap in case you need to look for a new job is your network. Over the years, you could have come across and met and cultivated professional relationships with different people in your industry. When looking for a job, they can help you identify opportunities in and around your industry.
They might have a job opening in their company or know one company that does have a job opening. They could also tap into their own network to help make introductions for you. This is one of the reasons why you always need to treat people you meet with respect because you might have to work with them someday.
Get a referral from your employer
As mentioned earlier, you need to stay away from knee-jerk reactions since this does not bring you any good. If you storm your manager’s office demanding an explanation putting everyone on the spot, you might have a hard time getting a referral from the same person. A referral is a great way to get one foot in the door of companies you are trying to get into. It would be close to impossible to get one if you are not in good terms with management.
It is a stressful time to be facing an imminent job loss at any point in your career because it disrupts your regular source of income. However, there are ways to help you prepare and transition well into a new job or simply finding an alternative source of income.