You may have a plan for an automotive breakdown or a natural disaster, but do you know what you would do if you lost your job? Most people don’t. Just because your job is secure today doesn’t mean you’ll be employed tomorrow. Even if it never happens to you, preparing for job loss will empower you.
Unexpected Job Loss
When business slows, layoffs often follow. This scenario has played out for huge numbers of people in 2009, many of whom had no idea that job loss was imminent. While you don’t want to live in fear, preparing for this eventuality will afford you a sense of power and peace knowing that your family will be just fine regardless of what happens with your job or the economy.
Make Discussing Job Loss a Priority
Don’t avoid talking about the possibility of losing your job. Many people just don’t want to think about it, so they don’t discuss or plan for it. If you get ahead of the worst-case scenario, you’ll actually feel better about the potential for job loss because you’ll know you have a plan for handling whatever may happen.
Switching Industries or Starting a Business
Planning for job loss isn’t a solo act. Discuss what you would do with your family so everyone is prepared. For example, could losing your job give you the time and opportunity to start your own business? What does your spouse think? Should you go ahead and start your business on a part-time basis if you already know your job is in jeopardy? Have you already considered switching industries or looking for higher paying jobs?
Creating Your Plan
Your emergency plan should include financial priorities, items you can eliminate, and how long you can afford to wait for the job of your dreams to come along before you must accept any job offered.
Your plan should include the specifics for how and where you will search for a new job, the pay you are willing to accept, and any plans for starting your own business or switching industries. Create a checklist with any special rules your household agrees to follow in the event you lose your job. Don’t forget to include a plan for enjoying daily living; you can’t put your life on hold while looking for a new job. You still need to get out of the house, exercise and have fun. In addition, start a job-loss savings account so you have easily accessible money saved for this specific emergency.
Reinforce Your Faith in Your Partner
If your partner or spouse loses his or her job, make reinforcing your faith in them a priority. Losing a job can affect a person’s self-esteem, especially in those who have always been the provider. Relationships can be challenged during this difficult time, but by making the effort to connect and be positive about the talents, skills and knowledge of your partner or spouse, you can actually strengthen your relationship at a time when he or she may need it most.
Job loss is a stressful time for anyone, but by having an emergency plan in place, you may actually find yourself in a stronger position than ever.