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Friday, July 10, 2009

Enduring Unemployment in a tough economy



UNEMPLOYMENT.

We hear about it everyday lately and nobody is immune from a sudden job loss these days. We've gotten to the point that we personally know someone who has been recently laid off from their job or is facing a lay off in the very near future.
Times are tough, jobs are scarce and we all need to tighten our belts during these trying times. But exactly how does one go about doing so? It's important to know how to be prepared for the possibility of loosing one's job. Below are some tips for those facing unemployment and those who are currently experiencing it.

1. Getting your finances in order. This will help you avoid going into unmanageable debt and you won't have to settle for the first job that comes along just to get by. Make a list of your current assets and debts and determine what your average monthly expenses are. By evaluating and understanding your current, personal balance sheet it will enable you to prepare for a possible loss of income. It may be helpful to create a budget as well.

2. Know your job severance policy and other benefits. Make sure you acquaint yourself with your employer's severance policy now. By knowing how much you can expect if you're laid off it will help you calculate how much you need to save or set aside in an emergency expense fund.

3. You should also determine whether you'll be allowed to continue your health insurance benefits if you lose your job, and recently Congress enacted to the COBRA policy, in certain cases, that the employee only needs to pay 35% of the COBRA premium for a period of 9 months. It is IMPORTANT to take this COBRA plan because it's when you don't have medical insurance that disaster usually strikes - Also known as the "Murphy's Law".


4. Immediately create an Emergency Fund. Saving some of your money separate from regular savings or checking accounts can help you cover any unforeseen costs that may arise due to the loss of your job. An emergency fund should be equal to six to eight months of basic living expenses. Although in these tough times I would personally recommend at least 12 months of living expenses.


If you do lose your job and find yourself unemployed, here are additional tips for getting through a period of job loss:


1. I can not say this strongly enough. APPLY FOR UNEMPLOYMENT INSURANCE BENEFITS IMMEDIATELY! Waiting may reduce your benefits.

2. Prioritize!! Pay the most important things first: mortgage/rent, car payment, car insurance, electricity & gas, water, groceries, etc. Personally, I'd pay my mortgage/rent anyday over paying off a credit card. Remember: The mortgage company/Landlord CAN and WILL evict you from your home for non-payment. The Credit Card company can not do that. Pay them the bare minimum!


3. ONLY use credit cards for critically important expenses. A new dress, shoes or purse is NOT a critically important expense. The engine in your car going, since you may need this to look for a new job and then to be able to get to your new job, or a broken down boiler in your home during the winter months IS a critically important expense.


4. Contact your creditors and inform them you've lost your job but are actively seeking employment. Discuss options for token or reduced payments for a limited time.

5. Be proactive with your job search. There are a number of career centers and online search tools to help you start a new chapter in your life. Additionally, networking with friends, relatives, and family has potential to lead to your next position.

6. Stay positive and stay BUSY -

Volunteer. This is your opportunity to give to those less fortunate or help children help themselves. Pick a cause you're interested in and volunteer some time. It's also great for networking and you just might fin a new job! Be careful if you're receiving unemployment and volunteering. Some states considers this "work" and may disqualify you in some cases.


Become autodidactic (self-taught). Teach yourself a new computer program, how to draw, play the guitar, arrange flowers or make jewelry. Learn how to cook Indian food or another cuisine. What about photography? Write a business plan, research a new product. Now's the time to learn and you just might discover a new career.


Get all those chores that needed to be done around the house finished. Start a garden to help offset your food budget. Now is the time to do all those things you said you'd do one day if you ever had the time. Guess what? You now have the time.


7. Stay in touch with your positive-minded former co-workers. Accept invitations from friends and family members to go out. Invite your friends over to watch movies or to exercise together. The key is staying in circulation and staying positive through interaction with people.


8. Try to Focus on Today. Here is a very simple trick that has saved my sanity and given me the ability to go on, regardless of my fears. It works like this . Ask yourself:

Do I have a roof over my head today?
Do I have food in the cupboard today?
Is my electricity still on today?
Is my car still parked in the drive?

If you answered yes to any or all of these questions, take a deep breath. Relax. Today you are okay. You can't worry about what will happen tomorrow. You could win the lottery or you could be hit by a bus. It's an unknown and outside of your control at this moment. It's in the future and you'll deal with that when it occurs. But today, you are okay. Chances are tomorrow you will be okay. If you are worried about what might happen in two weeks or two months, you're wasting valuable energy on supposition.

Every time you begin to future trip, start asking yourself 'Today' questions. Entrepreneurs do this a lot. At times, when you don't know where the money is going to come from, today questions will help you appreciate what you have, calm you and prevent you from freaking out about things that in most cases, will never happen. And if they do, you'll survive.

The best thing to do to fight against depression and a feeling of helplessness during this time of unemployment is to keep your thoughts positive. Engage your mind in activity. Use this time to grow and learn. And don't give up on yourself and certainly don't let your fears rule your future.


Good luck to everyone during these trying times! And remember We Will Survive!

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