Coping with Unemployment
The loss of your job, whether through redundancy or due to misconduct, can be one of the most stressful events in your lifetime. Unemployment is probably the last thing you need right now.
This will be a time of uncertainty and frustration.
If you feel that you were wrongfully or unfairly dismissed your lawyer or trade union can inform you of your rights, advise you on how to proceed and may be able to help you to win compensation or reinstatement.
Other than finding a better job, no single activity will cause your stress to disappear. However, we provide some guidance on the steps you can to help you through this very difficult time.
Take care of yourself
Dealing with job loss starts first with taking care of yourself, physically and emotionally. Because it may affect how you think of yourself, you will need to develop positive habits and thoughts to get you through. Support of family and friends, and perhaps even professional counseling, can be helpful in regaining your self-confidence and in helping you to move ahead.
Include your family in open discussions on the situation
Losing your job impacts everyone in the family because there is now less money, you are experiencing grief and anger and there may be more disagreements with your family about coping with the situation.
It may be tempting to spare your family the pain of your unemployment – but it will impact them and may require changes for each of them. Living on a smaller income and managing limited resources will be required and everyone will have to shoulder their responsibility.
Where are you financially?
Assess your financial situation because you may need help in managing you changed financial circumstances.
Upon termination, your employer may pay you a sum of money (severance pay) and extend your benefits coverage for a certain length of time after your job ends or give you some other form of compensation for job loss. Your severance package will be separate from the pay that you receive during your notice period.
You may be entitled to unemployment benefits – find out if you are eligible and apply for unemployment benefits.
You should determine how long your financial resources, including severance pay and unemployment benefits, can sustain you and your family. Due to reduced household income, you may have to cut back on spending. While you may be understandably concerned about having enough money to take care of your family, you need to plan, rather than react. Lashley Financial can work with you to find ways to manage your financial situation.
In addition, loss of job benefits may leave you with insufficient insurance coverage. Lashley Financial can help you to manage your insurance needs.
Look for additional money
If your income is the main income for your family and with the changes in spending, you are still having a shortfall, you will need to find additional sources of income to tide you over. This may involve drawing on your emergency resources, selling assets or finding temporary work. You may also consider using your credit cards – but this may be a risky and costly option.
Talk to your creditors
You may not be able to meet all of your obligations to your creditors. Therefore, it is important that you contact them, prior to the due date of the next payment, to discuss your situation with them. Most creditors would prefer to work with you to come up with an acceptable solution.
The key is to be upfront with your financial situation.
If your company offers counseling and support, do not let either anger or embarrassment prevent you from using these services. They may be useful in helping you to make the transition to what will be a different future.
Plan for the future
You will need to start thinking about and making plans for the future. You will need to decide if you will take an early retirement, go back to school, find a new job or start a business. If you want to continue working you should consider whether you want to stay in the same field or change career. During the time in between jobs, work on increasing and improving your knowledge and skill. Lashley Financial can work with you to decide which move is right for you.