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Tuesday, February 10, 2009

What to do when one loses job?

November-08 saw the biggest number of job losses in nearly 30 years. Economists have always said that the unemployment figure is a ‘lagging indicator’, but historically hiring picks up only well after a recession has ended and business regains confidence about the future. Darwin wrote: “It is not the strongest of the species that survives, nor the most intelligent, but those most responsive to change”. Every change brings new opportunities; our challenge is to find and capitalize on these new opportunities.
But all of that is a small consolation if you or a member of your family lost job and can’t find work? If you or anyone of your family has lost a job due to the ailing economy, you may be wondering what to do next to keep your finances afloat. Here are a few practical suggestions into surviving this job crisis. Hopefully, you will not need to use most of these.
Diversify: Diversification is not only for investment; it also pertains to income generation. So, if you’ve got talents and skills or that perfect hobby, you may think about leveraging these things into money-making ventures and alternative income streams.Temporary employment: To figuring out your next step, you might consider freelance work in your respective fields to bring in some extra income as well as open the doors to permanent opportunities by introducing you to new people and companies.
Calculate timeframe: The average person is currently taking four months to find a new job. Plan on taking six months. To adjust your lifestyle and move into survival mode you have to save unneeded luxuries like maid service, gardeners, add-on convenience services like caller ID, call waiting, premium cable channels and importantly on your food budget.
List of liquid assets: Make a list of your liquid assets, including stocks, bonds, credit lines, savings and pawnable items like electronics, jewelry and other items of value. Depending upon your savings situations, monthly expenses and your calculated timeframe to get the reemployment, you may need to liquidate these to survive.
Leverage online job resources: Based on the type of work you do, try contacting recruiters in your area by making inquiries at job boards and job sites. Rather than feel out-of-sorts when job search takes longer than you expect, you may have a leg up with your colleagues and ex-colleagues for your job search. It’s important to stay persistent through and keep spirits up because tomorrow may just be the day you land something.
Even those who still have jobs I suggest them to pay down their debt. May be you are not worried about your job but sometime it may come from out of the blue and when it comes, it seems you are never really prepared for it. Cutting down of expensive lifestyle will help in using that money to eliminate your debt. Eliminate all credit card debt that you can’t repay in a month or two. Pay off your car loan rather than go for new car with a larger loan.Instead of taking too much loans and debt, keeping little for a rainy day, a little initiation for saving habits would surely save such tragic situations.Of course many people are struggling to stay even, but who knows who’ll be next to lose a job which can have a devastating effect on your ability to live and your self-esteem.
Losing a job is definitely not a welcome situation. If it does happen, take it as a challenge; more importantly think of it as a chance. Layoffs are happening mostly because of the troubled economy, not because these employees have been bad at their jobs. Many times in your life you may have thought of making a change but was afraid to take that step on your own. Now is your chance and make the best of this opportunity.