So, you got your notice today, you’re laid off, shut down, quit or fired. All of these situations would send anyone into a panic and it’s a worry we all have.
After the panic has worn off there are a few very important steps you can take to help adjust as quickly as possible.
- Find out what type of income you will be receiving from the employer. You might be entitled to severance, vacation pay or sick benefits.
- Find out what government benefits you might be entitled to like unemployment benefits. The website may even have an online calculator to predict your benefit amount.
- Create a new budget. As quickly as possible you should list all of your new income sources and expenses.
- The budget may not balance. If there is a reduction in income it’s possible that your budget will come up short. In this case it will be very important for you to make decisions about how you will spend your income. Some decisions may be easy – no dining out. Some may be harder – get rid of the second car.
- Evaluate your debt obligation. If you are paying a lot every month to debts and after all of your expenses have been cut back there is still a deficit in the budget consider contacting a credit counsellor to help you navigate your debt options.
For fun I went around the office an asked the staff what is the first thing they would do if they lost their job? Here are some great ideas:
“Cut out all entertainment like movies and dining out”
“Pull the kids out of daycare”
“Have my husband pick up some overtime at work”
“Stop eating out”
“Make a new budget ASAP”