Being laid off is a life-altering event that can be very difficult to deal with. To make it plain and simple, losing your job sucks, particularly when it comes as a complete surprise. It can have a very lasting effect on your emotions and general state of mind. It does not matter that it has to do with the quality of your work or not, the disappointment still hits hard. There is a typical cycle that most people experience when they go through the loss of a job. It includes denial, anger, frustration, and eventually adaptation.
If you just lost your job, you might find yourself feeling a lot of emotions and thinking a lot of things. You might be in denial at first, till reality sets in. Then, you may be angry at your former company or manager, or whoever you feel is the cause of your quit notice. It is also common to start to feel sad and anxious about how to manage your bills until you can find a new job. Right after getting your letter, do the following:
1. Acknowledge Your Emotions, Then Move On
Accept that the myriad of emotions that you're feeling is a totally normal reaction in the aftermath of such a stressful situation. Be careful not to act on any of the emotions you are feeling, particularly anger towards your previous colleagues or managers. Speak with friends or family to help calm you down, if possible. Instead of dwelling on all these emotions, you need to understand that this, like every other situation, is a phase that will pass with the right outlook and mindset.
2. Figure Out What Supplemental Income and Benefits You May Qualify For
If you’ve lost your job, you might be eligible for supplemental income and benefits. Here are some things to consider looking into:
- Severance. If your job has been eliminated or you’ve been laid off, you might receive a severance package that includes pay, benefits or both. Ask how much severance pay you’ll receive and whether your health insurance will continue — and for how long.
- Health insurance. If you’ve lost your job-based health insurance, there may be other coverage options. You might qualify to enrol in new coverage through federal or state marketplaces.
3. Take an Honest Look at Your Finances and What You Owe
Now’s a good time to review any current debts you have. This could include car payments, credit cards, mortgages and more.
This might feel a little overwhelming at first — especially if you’re adding up your debt for the first time. But seeing everything together can help you make a plan. You could track your debts with a financial app, or you can simply create a spreadsheet. Even a handwritten list might help.
As you’re taking stock of your personal finances, knowing how much you owe — and when bills are due — can be a first step toward reducing any negative impact on your credit.
4. Cut Your Budget and Make a Spending Plan
Need a budget you can work with during this financially challenging time? It’s helpful to consider these three areas:
- How you spend your money.
- How much income you have from different sources.
- Nice-to-haves you can cut back on.
5. Reach Out to Your Credit Card Company
Sudden unemployment is already stressful. Worrying about the possibility of not being able to pay your upcoming monthly credit card bill just adds to that stress.
6. Prioritize Your Bills
Once you’ve gotten a handle on your monthly budget, you can prioritize your bills.
7. And Avoid Taking on Any New Debt
This might not be the time to add any new recurring payments to your monthly bills or to make purchases for things you don’t absolutely need.
Finally…
Facing a job loss or financial hardship is stressful, and it’s not a situation anyone chooses to be in. But just by reading this article and picking up some new information, you’ve already taken an important first step. Being financially and emotionally prepared can make managing this process a little easier.
