Have you ever been laid off?  It’s certainly one of those life events that can rattle the finances and stress you out.  I was laid off almost three years ago.  I must admit I saw it coming because my employer was making some big strategic changes and I felt my position was at risked because of these changes.  I had been interviewing and preparing, but there still isn’t anything like being unexpectedly pulled into a conference room to hear the announcement.  Some people react differently.  There’s obviously a mixed bag of emotions involved as some leave happily while others are sad, or even mad. 

How do you prepare for a layoff?

There are some things you can do to prepare in advance of a layoff.  While your layoff may come as a surprise, it doesn’t have to be a financial surprise.  Here are a few ideas:

Evaluate your work situation

As I mentioned, some people know in advance there is a chance they may be laid off.  Watch your work assignments.  Are you losing responsibilities to others in the department?  Do you see evidence your position may not add as much value to the organization because of strategic changes?  Do you have a good relationship with your boss and do you communicate regularly?  These are all questions to ask yourself and depending on your answers; it may be time to start dusting off the resume.

Start searching and networking

Update your resume and begin networking.  Touch base with recruiters and people who have remained in your professional network.  You can let people know you’re considering a move and that you would be interested in discussing opportunities with their company.  Also update your online social network such as Linkedin.  There’s a lot of recruiting taking place in the online world these days.

Save money

This one goes without saying because you definitely need that emergency fund established for such times as a layoff.  If you don’t have cash savings, the important thing is to start saving at least 5% of your take home pay in a high yield savings account.  How much do you need?  It depends on your risk tolerance, but most people these days are saying anywhere from 9-12 months of expenses.

What do you do if you’re laid off?

This past weekend, the Dallas Morning News provided three simple tips for surviving a lay0ff.  They say you can survive and I think they’re right!  I did it! 

There are always ways to successfully survive a layoff.  Much of that success will be rooted in devising a financial plan that can carry you through the difficult times and keep your head above water until those difficult times rebound to happier days.

Tighten your Budget

You have to be ready to prioritize bills and expenses.  I would say this is true in any financial crisis.  Some bills or expenses have to be at the top of the list like food, shelter and electricity.  Other bills, like cable TV need to be cut.  Especially, if you don’t have a deep emergency savings account.  The bottom line is your budget has to go into survival mode!

Eat in and cut out entertainment

Don’t even think about going out to eat and spending money at the movies.  People love to eat out.  It’s something people get used to doing every weekend and even during the week.  Look for such spending habits and cut them off immediately.  Your needs to be the top priority.  Not your wants.

Ask for help

Probably the best tip or advice that stood out to me is ask for help.  Most people have been in a layoff situation before and can provide advice.  Personally, my layoff was a journey of faith.  I didn’t want to look back afterwards and see that I was a stressed out wreck.  Rather, I tried to be calm and trust God.  This made things easier on my family too. 

Friends, family and even counselors can help.  You can seek the assistance of a Money Map Coach to help you answer tough questions with your finances and budget cutting that aren’t so easy to answer yourself.  There are alot of emtions in such times and having the support around you can help bring logical thinking into the situation.

Have you ever been laid off?  What did you do to survive?

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