Are You Prepared? How to Financially Survive a Layoff
If your work is facing layoffs or you have just recently been let go, take the steps necessary to keep you financially protected.
Getting caught off-guard by a layoff can be devastating. However, if you have a plan in place to deal with this type of event, you’ll likely land on your feet. Here’s how you can minimize the impact of a layoff.
Be Prepared: Before the layoff
Being prepared financially for a worst-case scenario may save you from a lot of turmoil down the road. There aren’t always signs that a layoff is coming but if you feel like a layoff may be on the horizon, here’s what you can do to prepare.
- Cut expenses. Cut all expenses except necessary ones. Do your research and think about getting a cheaper phone plan or dropping your cable subscription.
- Focus on savings. Finding a new job can take several months. You’ll need to make sure you have enough money saved up to last until you secure a new position. Aim to have enough funds to cover basic expenses for six months.
- Network. A professional network can be helpful in regaining employment. If you know layoffs are a possibility, start looking for a new job ahead of time by updating your resume and attending networking events. Get your profile updated on LinkedIn and put your best foot forward. It’s a good idea to do these things even if you aren’t expecting to be laid off.
Take Action: After the layoffIf you do in fact get laid off, here are a few things you should do soon after.
- Learn about unemployment benefits. Get informed about the unemployment benefits you may be eligible for. If you’re struggling to pay for your basic living expenses, Ontario Works offers financial assistance programs that may help. Be sure to look into federal employment insurance as well.
- Renegotiate bill payments. While you’re between jobs, it’s a good idea to carefully consider how you’ll stay on top of paying off your debts. In some cases, you may be able to renegotiate payments for bills and lines of credit. While unemployed, debt management is as important as finding employment. Debt consolidation may also be worth considering as a way to streamline your payments.
- Consider getting a part-time job. Getting a part-time job can help minimize your financial difficulties while leaving you enough time to actively look for something more permanent.