Out-of Work Stress
Job loss comes with two big stressors. First, there is the financial stuff that you need to figure out. Second, there is the emotional misery that you must wade through. Either piles of poop can sink you so above all else it is very, very important that you keep a cool head.
When you lose your job, apply for Employment Insurance benefits right away. Since it can take several weeks before you see a penny, the faster you do this, the less amount of time you’ll be scrambling for cash. If you have received a severance, this will affect when you EI benefits will start coming. A delay in the start of the claim will result in an extension at the other end of the same number of weeks and your EI claim can be extended by up to one year. However if you receive a severance payout of two years or more, you won’t be entitled to EI. Severance or separation pay is paid out in a number of different forms and each is handled differently by the EI system. You need to speak to your HR department to get the lowdown on how you’ll be affected.
Speaking of what you may get from your employer, check how long your benefits will stay in place and if you’ve got any vacation/sick pay coming. And if you’re entitled to reimbursement for expenses, file an expense report right away. While your employer is feeling rotten at having to let you go, ask for a glowing letter of recommendation.
Now it’s time to sit down with your fam to discuss what’s going to be different. This should include your immediate family AND extended family. No point in pretending everything is A-OK. Brave and strong you might be, but accepting help when you need it the most from people who love you the most is exactly what family is supposed to be about.
Yes, you should tell the kids. You’ll have to tailor your communication to your children based on their ages. But they’ll overhear the adults talking, they’ll feel the stress and they’ll internalize it if you don’t address it directly. So tell ‘em. Just reassure them that while some things are going to have to change, you are going to do whatever it takes to make sure the family is safe.
Since you’ve been counting on the income just lost to make ends meet, you’ll need to look for ways to reduce your expenses so that you can live within your means until you find another job. This may mean making several budgets. The first may include your severance. Once that ends and you’re relying solely on EI, you’ll need a second budget. If you find work quickly – maybe not the bestest job, but one that keeps food flowing – then you may need yet another budget.
Find as many places as you can to trim back. Cut your clothing budget completely, except for kid essentials. Ditto your entertainment, gifts, and all other non-essential expenses. Trim back on food. Trim way back on communication (telephone, cell, internet, and cable or satellite).
Remember, a budget isn’t something you make and then try to squeeze yourself into. Nope, a budget is your plan for how you’re going to use the money you have. Now that you have less, you must get creative. Is daycare still an option with one partner out of work, or will you swing-shift to take care of the kids at home while upgrading skills and job-hunting? Or will you both take on part-time work to keep the kids in daycare so you don’t lose your spaces?
At this point, I bet you’re really glad you started that emergency fund. No emergency fund? Ooops. Are there things you can sell to make one? The motorcycle? The ATV? The second car? Well, your severance can pick up the slack. No severance? Ouch. I guess you’ll just have to get your butt out there and find a job, two jobs, three jobs… whatever it takes… to keep it all together. And, NO, a line of credit is NOT a good emergency fund, no matter what you’ve been told. If you think coping with unemployment is hard, try doing it while making debt repayments. Sure, sure, you’ll eventually get another job. But if you’ve dug yourself a hellovahole in the meantime, you’ll be waaay sorry. So it doesn’t matter what you have to do to keep a roof over your head, that’s a better alternative to using a line of credit.
The same goes for using your credit cards to fill the gap in your cash flow. Don’t do it. In fact, you should take your credit and debit cards out of your wallet and hide ‘em, freeze ‘em, bury ‘em so that you don’t have the wherewithal to buy things on impulse. There is no time when you’ll be more tempted to spend money on crap than when you’re feeling deprived. And don’t go to a payday loan company. With costs ranging from 300-900% annually when you include the set up fees, interest, services fees and loan repayment fees, this is a hole you’ll never climb out of. Don’t go there.
If you’re already walking around with a bunch of debt, time to call your creditors. Explain that you’re out of work and need a) and interest rate reduction, and b) a repayment plan that’ll work with your new budget. Take a trip to your bank and see if a consolidation loan will help ease your cash flow. Do whatever you can to reduce your costs and ease the pinch. This is no time to let pride get in the way of common sense.
Tell everyone you know and everyone you meet that you’re looking for a job. Since many jobs are found by word of mouth, telling people exactly what kind of work you’re looking for is a good way to start. While lots of people are tempted to stop their job search efforts at this point, resist the urge. You need to have an overall job search strategy that includes a daily job search schedule. Getting a job IS YOUR JOB right now, and you should do it with all the energy and enthusiasm you used to spend working. Schedule your day as if you were going to work, make sure you include some socializing time – unemployment can be horrendously isolating – and keep on truckin’.
Yes, it is hard. Yes, the rejection can be soul numbing. But you can’t just give up and hope something will come along. You have a family counting on you. YOU are counting on you. So get busy. Your next job isn’t going to find you!
There are federal, provincial and municipal services that may be able to help. Get out there and find out what they are. Use the internet to find opportunities for you to throw yourself at prospective employers. Update your resume. Post it everywhere. And tell everyone to tell everyone. You need a job!
If you hated your last job, then now is the time to start thinking about a career change. Can you use the time you’re not working to upgrade your skills or take some night courses to retrain for something new? Would this be a good time to turn that hobby into a business?
I am not recommending you remortgage your house and buy a business because you’re desperate. Hey, people do this. What I’m suggesting is that if there is something you’ve always wanted to do – be it landscaping, web design, freelance writing, or small engine repair – now may be just the time to start making some money doing what you love. If you can turn it into a viable, full-time business good for you. If it brings in extra money while things are tight, that’s good too. And if you find a full-time job and can keep doing your biz on the side, hey, that’s alright too, isn’t it?