Have You Been Given the Pink Slip?

Opportunity…Often it comes disguised in the form of misfortune, or temporary defeat.  ~ Napoleon Hill

     It seems news of lay-offs is a daily event these days. Large companies lay-off in large numbers and small companies lay off in small numbers.  Either way, a lay off is a lay off to the person losing their job. So, what do you do first when you see one coming, or you receive the pink slip? Before you start your job search, take care of some personal business:

Don’t take it personally.  There is no stigma attached to losing your job!  Don’t give that a second thought. Simply explain the facts to employers you interview with and keep any negative comments about the lay off to yourself. Set your sights on the future, not the past.

Apply for unemployment benefits.  These benefits are there for you. Don’t hesitate to sign up.  This is no time to let pride get in our way!

Do the math.  It is important to immediately review your finances.  You need to know what dollars you have incoming compared to those going out. Look for ways to cut costs  to live within your reduced means.  Do you need both a cell phone and a land line?  How about your car insurance, do you need the same level of coverage?  What can you do without and not miss it? Also consider how long any savings will last and factor that into the time you may need to ride out your job search.

Evaluate healthcare options.  Your employer will offer to extend your benefits for a fee.  Often this is an expensive option, so evaluate the alternatives.  For those who are married with a working spouse, you may get a better deal by changing coverage to your spouses insurance. Also, check into private group policies.  Many may choose to skip health insurance altogether because of the high cost.  This is a choice and it is also a risk.  A friend needed an emergency appendectomy and the price tag out of pocket was $10,000!  Predicting healthcare emergencies is impossible, so carefully consider all your options.

Don’t touch your 401k.  It is tempting to want to get at this money!  Given the taxes and the penalties, it is a losing proposition overall. You can keep your 401k where it is with your employer until you have researched rolling it over to an IRA account.  There is no need to rush here.

Take advantage of any career planning assistance.  This may include career counseling, resume preparation, and overall job search assistance.  Timing of the offer may be limited so make sure you know when the opportunity expires. Take advantage of what is on offer.

     Once you get some basics in place in your life, you will be in a better place to start your actual job search. 

Stay encouraged. Use this time as an opportunity to reinvent your work life.  Know this: there is life after lay-off!