I wanted to write a little bit about this topic since it strikes very close to home right now. I just got laid off from my job on Friday due to a lack of work and now I’m sitting around my condo wondering what to do. It seems like nowadays more and more people are losing their jobs due to company downsizing, lack of work etc. For most people, their job is their main income (sometimes their only income) and losing their job can mean a spectrum of financial disaster, anywhere from not being able to afford to go out to fancy restaurants anymore, to not being able to pay the bills and possibly even having to sell the house and downsize. Even if you disliked your job (as I know many of us do), it seems better now than not having one at all. Here are a few pointers I have come up with in order to better cope with losing your job:
Savings
The first thing I want to address is your savings. Throughout my blog I have mentioned the importance of having a savings account and putting money into it on a regular basis. I suggest putting 5% of every pay check you have into a separate savings account so you have something to fall back on in case you lose your main source of income. I personally like to put away my spare change (anything in my pay check that doesn’t add up to a full $50 or $100). For those of you that still have your job and haven’t started saving, start now! You never know how long you’ll have your job for and it’s better to be safe than sorry. It’s better to learn how to save money now so you can have something to fall back just in case. For those of you that have already lost your job, I hope you have been saving up because now is the time to dip in. If you are able to go on EI (employment insurance) than you don’t have to worry about your finances as much as those who are unable to claim it, however, it still takes a month or two to process before you are approved so you can live off your savings until you start getting your EI checks.
Employment Insurance
If you lost your job through no fault of your own, chances are you qualify for employment insurance. If you are on EI, you will not receive your usual sized pay checks (it is generally close to 60% of what you made before), but it should get you through until you can find some work of your own. For more general information on EI, or to apply for EI in Canada check out this website: http://www.servicecanada.gc.ca/eng/sc/ei/index.shtml.
Downsizing
Those of us without a steady (or any) stream of income are fully aware of exactly how much money we have and what needs to be paid. It is important in these times to not buy whatever you like in excess, but instead to stick to the bare necessities until you can find more work. Let’s say that for whatever reason you are not able to qualify for EI (maybe you were just a temporary worker, maybe you quit prematurely etc), and only have $3000 in your savings that you can live off until you find another stream of income. This is not the time to go off and get your hair done, buy nice new clothes, go out to nice restaurants or upgrade your car. Buy just what you need to survive so that you can stretch out every last dollar for everything its worth. When you go grocery shopping, buy no name products and try and be as resourceful as possible around the house. If you only have a little bit of money to get you through this rough time, make sure every dollar you spend is worth it.
Divide Up Your Money
When talking about downsizing, you must also start thinking about making a budget for yourself. Write down all of your bills that you have to pay each month and pay close attention to the ones that are coming up. Is your mortgage payment due soon? When are your credit card bills due? The best way to do this is to write down the due dates for everything and the amount you have to pay in the next month on a calendar. This way you’ll have everything right in front of you and you’ll know exactly how much you need to pay and when. In these times, make sure you only pay the minimum amount; you can always pay more once you get a full time job again but for now, just stick to the basics. It’s also helpful to write down the amount of money you have left after each week of bills, groceries and other miscellaneous payments to see where you’re at. This way you can see exactly how much you have left and whether or not you need to adjust your budget accordingly.
That was a useful way to deal with your payments when money is tight, but there are other aspects to making a budget for your money during this time. First of all, try not to use credit cards! You don’t know how long you will be without a job and the last thing you need is to be more in debt. Besides, leave whatever you have available to you on credit as an absolute last resource in case you run out of money entirely and need to buy food. Until then, use cash. When you go grocery shopping take a few bills with you and pay in cash at the counter to ensure that you don’t buy more than what you can afford. Buying in cash is also much easier to keep track of and will keep you more conscious of how much you are actually spending. Remember, until you get another stream of income, keep it simple.
Looking For a New Job
After losing a job, one of the first things on your mind should be to find another one and do it quickly. Many people live pay check to pay check and having your bills pile up isn’t something anyone wants to go through. But before you start looking, you might want to take a minute to spruce up your old resume with new and current information. Make sure you have at least 3 references and make a few different cover letters. Many employers respond well to cover letters and are more likely to hire you if you have a good one so be sure to include that with your resume. Also, make a few different cover letters for each different job niche you are applying to. For example, you don’t want to include your construction cover letter to a bartender job. Make your cover letters show the specific qualities that are required for that particular job niche. It’s also a good idea to whip out your business clothes and make sure it is clean and pressed. In case you get an interview, you want to look sharp. If you don’t have any business clothes (or what you do have is so old that you don’t want to wear it out in public), consider buying some so long as it fits in your budget.
Now, the best way to find a new job after losing your old job is to apply for as many jobs as you can find. You’ve done the best you can with your resume and your cover letters so it’s all just a numbers game from here. The more places you apply to, the more chances that you’ll get a call back. The more call backs you get, the more interviews you’ll have, and the more interviews you get, the more likely it is that someone will hire you. So first of all, apply everywhere you are qualified to work; check the internet for new job openings, check the newspaper’s job listings and ask your family and friends if they know anywhere that is hiring (maybe they can put in a good word for you too). After you’ve applied everywhere you qualify for, start applying at jobs that are lower down on the financial ladder. In desperate times you can’t afford to be too picky so you may as well apply and just get some sort of income; remember you can always get a better job later on but bills need to be paid. Besides, it’s always good to have options. The more places you apply for, the more places will offer you the position and then you are able to choose which one suits you best.
Although you should be applying to as many places as you can find, you may notice that your motivation starts to quit on you after a while. Try to apply to at least 10 places a day – do as many as you can but make sure you hit at least 10. This way you are consistent in your methods and you will constantly be aware of new positions opening up so you can be one of the first to grab it. The more places you apply for over a longer period of time, the more likely it is that eventually someone will hire you – you just have to keep working at it.
The image used in this post is taken from Image: graur razvan ionut / FreeDigitalPhotos.net
