Job loss doesn’t always come out of the blue. If/when this happens, take the time to lay the groundwork to survive financially without a job for a few months and to find a new job in as short a time frame as possible by following these tips...
My husband works in academia. He is currently on his second year of a two-year, non-tenure track contract. To advance, he needs to secure grants, and while he has done that, he still is a bit nervous that his contract is up for renewal shortly because academia can be a fickle place to work.
Maybe you work in a place where a few of your colleagues have been laid off or let go. You may worry that you’ll be next. Or, perhaps you work in a field where jobs are disappearing. If you, like us, aren’t sure if you’ll have a job in the next year or two, there are many steps you can take now to safeguard your financial future....
Financial Precautions
If your job may be in jeopardy, taking financial precautions as early as possible is essential. There are a number of things you can do to protect yourself financially:
Declutter Your House
Decluttering your house may be the last thing that you’re thinking of at this time, but it serves two important purposes.
First, you can sell items that you no longer need and use that money to cushion your emergency fund. Second, if you do lose your job and remain without a job for quite some time, or if you end up getting a new, non-local job, you may consider selling your house. If it’s already decluttered and in good condition, you’ll be able to much more easily put it on the market. . .quickly, if you need to.
Curb Expenses
The best time to curb expenses is now before you lose the job. If you normally spend $700 a month on groceries, why not try to get by on just a bit less, like $600? If you set your air conditioning at 76 degrees, try moving it up to 77 or 78 degrees. Eliminate subscriptions for services that you don’t use regularly. Call your Internet provider and see if they’d be willing to offer you a one-year deal to lower your monthly rate. Cut cable and streaming services. All the money that you free up from these cuts can be diverted to your emergency fund, which will provide you with an essential financial cushion if you do lose your job.
Stop Contributing To Your Retirement
Depending on your financial situation, you may want to temporarily quit contributing to your retirement account. Use the money instead to pay down debt and save. If you find that your job is secure or you find a new job, you can begin contributing again.
Speaking of retirement, speak to an expert to learn how to roll your current retirement account into a private one so you can take your retirement with you if you do leave your current job.
Find A Side Hustle
A side hustle can be beneficial in so many ways. Having one can take your mind off work stress, but it can also generate additional income. You could save the income now, but if you do lose your job, the additional income can help keep you afloat and stretch your savings. And who knows? Often someone’s side hustle turns into their full-time job, so you could be creating your own new job. After all, Stephen King was a high school English teacher who wrote Carrie at night and on the weekends in a tiny closet he converted to his office. We all know how that side hustle went!
Prioritize Debt
If you carry several debts, take the time now to prioritize them. Depending on your debt load and when you may lose your job, you likely can’t pay them all off before you lose your job. Decide which debts are most important.
If you’re single and have a car loan and credit card debt, you may decide the car loan should be paid off first because you’ll need a car to get to job interviews and a new job.
If you want a job in academia, you’ll want to make sure that your student loans stay current because if you default on a student loan, you won’t be hired by a university.
If you do lose your job, consider applying for a hardship deferral on your student loans so you can temporarily stop paying them. If you don’t want to do that, consider changing your repayment plan to one that makes you pay less each month such as a graduated plan rather than a standard repayment plan.
Career Precautions
Just as you take financial precautions, you should also take career precautions to help lay the groundwork for securing a new job.
Revamp Your Resume
If it’s been awhile since you were job hunting, take the time to revamp your resume. Make sure that your resume includes all of your jobs and skills and that it is attractive by today’s standards. You can search the web for sample resumes or even hire a resume writer to make sure your resume is polished and modern.
Be Active in LinkedIn
If you don’t have a LinkedIn presence, create one. If you do have one, make sure your profile is up-to-date, and continue to update it every month or so. However, that’s not enough. Stay active on LinkedIn by liking and commenting on others’ in your network or by joining groups and interacting there. However, make sure that you’re being helpful and not spammy as that won’t help you land a new job!
Keep An Eye On The Job Market
If you worry that your job is at risk, take the time to search the job market in your field both locally and throughout the country to see what is available.
Apply For Other Jobs
Once you scope out the job market, go ahead and apply for some jobs. If you don’t lose your current job, knowing what other jobs are available and how much they pay may give you leverage to ask for a raise at your current job. If you do lose your job, you’ll already be on the path to finding a new job.
Although my husband and I both hope that he keeps his current job, my husband is still going to search for jobs this fall and apply to any that are applicable to his skill set. Being proactive hopefully means less time without a job, should his contract not get renewed.
Improve Your Education
Take the time now to take a class or two or get a certificate that you can use in your career field. This may make you less vulnerable to losing your current job, but it can also make you more hirable if you need to find another job.
Conclusions
Job loss doesn’t always come out of the blue. Sometimes you know a contract renewal is coming up, or you can sense that the atmosphere in your current job is not good, or you can see others losing their jobs in your field. Rather than panic, which many people do, take the time to lay the groundwork to survive financially without a job for a few months and to find a new job in as short a time frame as possible.
