Sometimes a job loss is a surprise. Someone from HR will meet you at your desk with a box of your belongings, take your badge and walk you to the door. Other times you may have a few weeks or even months to prepare.
Losing your job can be devastating. But being prepared can help your finances stay afloat during a period of unemployment, and sometimes your job will snatch you away may just be the boost you need to change careers. If you know a job loss is imminent, here are some steps you can take to prepare for the storm.
Step up your emergency fund game
Most personal finance experts recommend having at least 3-6 months worth of hard cash in a bank or elsewhere easily accessible. If you become unemployed, this money can help you stay afloat.
And while that’s not ideal, you can check your 401(k), employee stock purchase plans, and other investments to see what the withdrawal rules are and how your termination may affect them. These options can give you some leeway if you need the money to keep you afloat while you look for a new job.
Make a health insurance plan
Most of us have our health insurance through our employer. If you lose your job, you may be able to switch to a spouse’s health insurance plan if your job loss counts as an eligible event, or pay COBRA premiums for a few months until you can get a new job with a new health insurance. policy in place.
Another option might be to purchase your own individual health insurance policy to help fill the gap. Health insurance is expensive no matter which option you choose, but having a costly medical emergency while you’re unemployed and uninsured can quickly put an end to an already precarious financial situation.
Refresh your CV
If it’s been a while since you’ve dusted off your resume, now’s the time to give it a makeover. Update your resume to put your job search on the right track. And while you’re at it, check your social media presence, including any public profiles.
Contact your network
Once you have a new CV, reach out to your network to let them know you will be looking for work soon. Contacts from previous jobs, mentors, or other people you know in your community can help you find opportunities before they are posted on job boards. Get the most out of your network
No one wants to lose their job, especially on short notice. But being prepared can help reduce the stress you’ll feel while looking for a new job. Taking action gives you something to do besides worrying and is a good way to keep moving forward even in the face of a delayed job loss.