What to do if you're laid off from your job
/Going through a layoff is one of the most heart-wrenching experiences any of us could go through. It not only impacts your finances, it also affects your emotional wellbeing. Growing up, I remember watching my dad go through a layoff and the pain it caused my family. As a little girl, I wanted so badly to be able to fix the situation and felt so helpless because there wasn’t anything I could do.
Fast-forward to my college years, I was laid off from my summer job because the company was going through tough financial times. Although I had the safety net of living at my parents and not paying rent, the shock of being let go and not being able to save up money for my college expenses shook me to the core. Later as an adult working as an accountant at a ski resort, I watched my friends and colleagues have their lives upended when the company we worked for laid off over 20% of the workforce. Although I kept my position, my salary was cut by 20%.
I share all this to say that if you have recently been laid off, I understand the pain and financial anguish that often occurs in the aftermath. It can be tough to pick yourself up again. It is common to doubt your abilities, skills and value after you’ve been let go from a company. And although it was a financial decision on the company’s part, it is super tough to not take it personal.
I get it. Feel free to give yourself time to mourn, grieve, be angry, feel scared and all of the emotions. Then channel those feelings into taking positive steps to get your financial life back on track.
Watching the company I worked for cut over 20% of the workforce, gave me the fire I needed to forge my own path as an entrepreneur.
Before leaping into finding a new job or starting a business, take a beat to reflect on this experience. With that said, if you’re in a dire position where you are now struggling to make ends meet, this reflection period can be five minutes because you’ve got bills to pay. But, gift yourself the time you need to breathe and reflect. I am big on journaling, if that’s also you then grab your journal and reflect on some of the following questions.
What did I enjoy about this job? Think about the people you worked with, the tasks you performed and the way you were able to perform. Were you given a lot of direction or autonomy? What did you like about the experience of working at this company? This will inform what to look for in your next adventure.
What would you change about this experience? Think about the same aspects as #1. The people, the tasks you performed and the way you were able to perform. What about any of this did you not enjoy? This will also inform what you look for in your next adventure.
What could you have done differently? Think about your savings and the way you performed at your job. Could you have been in a better financial situation after this layoff? Could you have taken your job more seriously? Or maybe you took it way too seriously and didn’t make the time to enjoy life. Use this information to adjust your behaviors in the future.
After you take time to reflect, then it’s time to move your body. Get out and go for a walk, take a pilates class or do a HIIT workout. We tend to live in our heads and especially after a huge life-changing event such as layoff, a lot of us have the tendency to overthink the situation. Your body holds a lot of wisdom and if you intentionally spend time moving and sweating, you will not only feel better. You will also gain insights that would not have otherwise been revealed to you.
Once you have done some reflection and moved your body (maybe after doing those two things a few times) it is time to take action. Take a look at your finances and get super clear on where you are and what you need to maintain your current lifestyle. Look at your checkings, savings and investing accounts. Look at your debt and calculate your net-worth. And ask yourself the following the questions:
How much do I need to make each month to cover the bare essentials? This includes a roof over your head, food on the table, any medical needs you have, some entertainment and anything else that is specific to your situation.
How long can I go without earning income? Take a look at your savings and see if you can manage to go one week, one year or somewhere in between without earning an income.
What are my options to replace my income? You can look at other jobs, you can look at side hustle opportunities, you can launch a freelancing business. For more ideas, you can read my 30 ways to add $300 to your bank account in 30 days article.
Who can I ask for help? One of the biggest lessons that money has taught me is that it’s important to reach out to friends and family for support. As a fiercely independent person, I have the tendency to try to do everything myself. While this is a noble trait and has helped me build a very successful business, it is not always the healthiest choice. It’s ok to be vulnerable and ask for help. And the people who love you will be so happy that you asked for help.
Remember that this situation is only temporary. Your financial situation may be severely impacted, but you will bounce back. You are resilient and you will come out of this situation stronger and wiser than ever.
