29/11/2019 0 Comments
Preparing for the Worst: Before & After a Layoff
A layoff can take you by surprise. However, being prepared to deal with the possibility of one happening is the best way to avoid disastrous consequences.
Here’s how to get through a layoff by preparing for the worst case scenario and how you can get yourself back on track to financial freedom!
Be Prepared - The Looming Layoff
The best way to mitigate the impact of a layoff is to be ready for it. Some people may have a second revenue stream to fall back on, but many don’t. Here’s what you should do when you start feeling like layoffs may be on the horizon.
- Reduce your expenses. Your first step should be to cut every non-essential expense. That means everything except rent or mortgage, food, minimum debt payments and basic health needs such as medication. You should also consider dropping Netflix or cable subscriptions and switching to a cheaper phone and internet plan.
- Save. All the money you’re not spending on basic necessities should go into a savings account. It may take several months before you find another job, so plan to have enough money to survive for at least three months.
- Use your connections. Your personal and professional networks may turn out to be invaluable resources when it comes to securing a new job. Make a habit of updating your resume regularly and of attending networking events. Having a plan B could save you a lot of time and stress down the road.
If You Get Laid Off
Being prepared is one thing, but it may not be enough. Here are some steps to take to ensure you can maintain financial stability while looking for another job.
- Apply for unemployment benefits. Federal employment insurance can help you stay afloat until you find work. You may also be eligible for Alberta’s income support program.
- Renegotiate payment agreements. It’s possible that you may end up having to prioritize certain bills over others. In such a case, it might be necessary for you to renegotiate some of your payment arrangements. Debt management is almost as important as finding a new job. You may also want to consult a credit counsellor.
- Consider working part time. Getting part-time work is often an effective way to relieve some financial pressure until you find a permanent position in your field.
A Licensed Insolvency Trustee Is Waiting for Your Call!
While being prepared is one of the most important things you can do to survive a layoff, seeking the help of a credit counselling or debt help service is also a good idea. Fox-Miles & Associates Inc. provides credit counselling and debt management solutions to people in the Edmonton, Sherwood Park and Spruce Grove areas. Contact us today for a free consultation and find out how we can help you.