5 Things to do When You Get Laid Off (to Ensure Financial Stability)

Losing your job is one of the most stressful situations for any of us, but it’s not the end of the world. Here are some tips for what to do when you get laid off.

The job economy is upside down right now. For the tens of millions of people who will soon experience layoffs, things will get worse before they get better. If you’ve been laid off, you should learn practical next steps—from tightening your budget to finding temporary work.

After all, getting laid off is usually the result of things that are completely out of your control, which means there’s nothing tricky to explain when applying or interviewing for a new job.

Here are some tips for what to do when you get laid off.

1. Call a Loved one 

Call your sibling or your best mate who may have been through the same. Maybe your parents even. Most parents have had a long career and they know exactly what it’s like to be laid off because it’s happened to them. 

Talking to family and friends can be a good outlet for your emotions.  When you go through something you have never experienced, share your feelings with those who may have been in your shoes at some point. Your family or friends can listen to and tell you it is going to be fine. 

2. Don’t Feel Ashamed 

Many of us feel ashamed when get laid off. But hey, it isn’t your fault!

Some studies suggest that people tend to feel worse about being unemployed—and report poorer health. If they can wrap their head around the idea that this period of unemployment will likely be only temporary the psychological impact of a layoff shouldn’t be as devastating as in past recessions.

Still, if you feel ashamed because of your lay off, make sure to acknowledge it so it doesn’t linger.

Shame is an unhealthy feeling if you keep it inside on its own. It also can keep you from opening up to your family, friends, and people in your professional networks who might be in a position to help you.

Having said that…

3. Give Yourself Time to Grieve and Mourn

Carve out a “worry time” for your self. It’s alright to feel bad in situations like these. 

Such reactions are to be expected to accompany any layoff, never mind during a global pandemic. It can help to normalize the worry. 

So when you’re laid off the first time. Don’t start calling up everyone in your network looking for the next job. Instead, give yourself a few days to just feel bad.

Intentionally slowed down to acknowledge your grief. The current events are truly cataclysmic. Most of us are feeling confusion, anxiety, even anguish. If you’re feeling any of these things, please know that it’s normal to feel them. 

4. Control What You Can Control 

After you have mourned your job loss focus on what you can control. 

You know already that you cannot control the forces of nature. But you could look back a year from now and say, “That situation gave you the time and opportunity to make the best of it.

Accept reality, make a plan, and move on.

Related: How to Cope When Freelance Work Dries Up

5. Ensure Your Financial Stability 

First of all, you have to ensure your financial stability. Here are some of the things you can do to ensure that. 

5.1 Access governmental services

A portion of your monthly salary goes into unemployment insurance for a reason, so now is the time to use it. Depending on your country, it’s important to immediately inquire about what options are available to you, and then apply with the layoff letter you received from your employer. 

Government services may not cover your entire income, but this kind of buffer will provide some financial support and peace of mind during your transition period.

5.2 Use your emergency fund – wisely

Regardless of the state of the economy, unexpected natural calamities like a pandemic — financial experts have long recommended keeping enough cash in a savings account to cover your expenses for as few as three months and up to one year.

As a general rule, your emergency fund should be equal to three months’ worth of expenses, at minimum, if you split bills with a partner and you both work. If only one person earns an income, you should have six months worth of expenses saved, at minimum.

It is hard to predict how long corona pandemic will last. But if you have cash socked away — or any other windfall that you can stash into savings as soon as you get it — budget it wisely so you can pay your essential bills for the next few months.

5.3 Cut down any unnecessary expenses

Take a close look at your monthly expenses and make cuts where you can.

If you’re laid off, the most important thing to ensure that bills essential to your day to day survival — like rent, utilities, groceries, health insurance, etc. are covered. That may mean pausing your streaming services, gym membership, or any other subscriptions for the time being to free up some cash. 

If you have credit card payments or loan payments, a quick call to your bank may help you get those payments suspended for the next few months. 

In some countries, authorities are also being generous, allowing residents to skip payments but keep their essential services, like water and internet, running. Check if there are any such exceptions made where you live. 

5.4. Make a Budget With Your Partner 

If your partner is working remotely or is an “essential” consumer-facing employee, like a grocery store, pharmacy, or hospital, chances are they will continue to be.

The economy likely won’t shut down completely and there will always be demand for front-line workers. If you’re used to a double income household and your spouse is the only one bringing home a paycheck right now, work together to budget the monthly expenses. 

To be 100% thorough, assume that their job is also uncertain and prepare accordingly.

5.5 Find a way to earn additional income

If you have are able and willing to find a new job, many businesses that are deemed essential — are hiring hundreds of thousands of workers to fill positions immediately to help satisfy the increased demands. 

Otherwise, evaluate whether your skills are transferrable online — can your knowledge help others, improve anyone’s skillset? Can you give one to one foreign language classes online? Or write content for some niche businesses? Ask yourself these questions and plan your next move. 

There are several online platforms such as Thinkific, Skillshare, Udemy that let communities learn from each other regardless of the geographical barriers. 

If you’ve recently been laid off or fear you may be soon, these steps will help you stay afloat and ensure your emotional and financial wellbeing. Are you in the same boat? What are your top tips to deal when you are laid off?