There are plenty of twenty and thirtysomethings being laid off right now, and they probably didn’t anticipate their first or second job resulting in a layoff. It’s not the end of the world, but it’s a huge event in your life that has the potential of ruining your financial life. The importance of an emergency fund, staying positive, and seeking alternative sources of income are all important to surviving a layoff.
Being laid off is the biggest reason so many financial professionals stress the importance of an emergency fund. If you’ve already been laid off and you don’t have an emergency fund, then it’s too late. You’ll need get on the wagon and get any work you can find, even if it’s delivering pizzas. If you haven’t been laid off yet, but you are uneasy about your job security, start saving money on a weekly basis. Put aside 10 to 15% of your paycheck in an online savings account for your emergency fund.
Being depressed and not doing anything about your situation is the worst thing you can do for yourself. You must stay positive if you were laid off. Don’t take it personal. Your company didn’t choose you based on what type of employee you were, they chose based on what was best for the company based on a slew of numbers crunched to help the company save money and stay profitable. In fact, your company probably made a lot of bad financial decisions, and now the consequence is laying off part of their workforce.
If you are handed a pink slip, waste no time to start generating income. Start selling some stuff on Craigslist, ask for consulting work, get a job waiting tables or delivering pizzas, or do yard work for elderly people in your neighborhood. Do something. Don’t sit at home and watch Regis and Kelly hoping that someone calls you back to talk about the resume you submitted online.
Getting laid off is not fun, but you don’t have to suffer for long if you stay proactive. Also, the government provides many types of welfare and unemployment benefits are one of them. If they are going to provide it, then take advantage of applying for it. It doesn’t last too long, but it will help keep you afloat if you didn’t have an emergency fund. If you’ve been laid off, and you have questions, feel free to contact me.