What to Do If You Unexpectedly Lose a Job
Don’t panic! If you lose your job, you’re facing grief and anxiety. Suddenly, you realize you have no finances to cope with everyday situations. You don’t know if using the emergency costs would help, or how long will it take to get a stable paycheck once again.
In this article, you’ll find helpful tips to get started; something to push you out of depression and embrace a new challenge!
Organize Your Finances
The most distress from losing a job comes from the financial ramifications. In addition, unforeseen loss of income can impact your emotional health; so, you should take the following steps as a precaution:
File for Unemployment
Contacting your state’s unemployment office is a priority step to do if you don’t have a job. It’s especially critical during a pandemic, even if you’re not sure you qualify. In March 2020, the CARES Act was signed into law, expanding the state’s ability to provide unemployment assistance for a broader range of professionals.
Right now you can be an independent contractor, a freelancer, or a part-time worker — you can still give a call to the unemployment office and ask for help.
Choose a Health Insurance
Find out the opportunities your former employer will offer. For example, for how long they will cover your health insurance benefits. The main rule — is don’t let your plan slip out, allowing a lapse in insurance, which will cost you a lot more money. Best Option to save money honey Baked Ham Coupons
Where can you look for alternative options?
- COBRA (Consolidated Omnibus Budget Reconciliation Act) — provides a way for workers to maintain their employer-provided health insurance during a job loss. COBRA is a good way to extend the health care benefits, but it will still be more costly since you don’t have support from your employer;
- Affordable Care Act (ACA) Marketplace plans — a cheaper option, based on income and household size;
- Medicaid — check if you qualify for free or lost cost coverage at your state Medicaid agency;
- Join a spouse’s employer-provided health plan;
- Check out the other affordable options at HealthCare.gov or a local state’s health insurance exchange.
Withdraw Your Retirement Funds
When you lose a job, there are three main ways out of a financial crisis:
- roll your retirement funds into a new company’s fund as soon as you get a new job
- roll your account over to IRA (Individual Retirement Account) to continue pursuing tax-deferred or tax-free financial growth
- cash out your retirement fund.
The financial experts don’t recommend the third option, since this will cancel many benefits for you. First, you need to pay a 10% early withdrawal penalty (if taking out cash before you’re 55); second, it will impede your long-term financial growth. Therefore, sometimes it’s better to browse for apps that give cash advance, than cashing out retirement funds.
Limit Your Expenses
Cutting your daily expenses is a good thing to do right after you file for unemployment.
Here’s something you can do without hesitation:
- call the service providers and ask if they can lower your bill
- switch to a lower allowance mobile plan
- raise your car insurance deductible (if you don’t drive as much, most likely, you won’t get into an accident)
- if you rent an apartment, talk with your landlord to reduce the cost for a few months
The best advice — figure out the minimum amount of cash you need daily; the more you can stretch your cash, the more time you’ll have to find a new job.
Access an Emergency Fund
This step is only good as a last resort. You should do it with extreme caution and as little as possible. Remember that covering an initial need for money, you’ll still need a long-term plan to survive.
You can explore the local and federal relief programs as well. SNAP, Medicaid, and LIHEAP are the ones where you can find assistance.
Move On to a Job Search
Losing a job can be another opportunity to find something better. It’s time to update your resume and go to interviews! Remember, that you’re competing with hundreds more people, who found themselves in a similar situation; you have to invest time to assess your strong sides and incorporate those skills into a resume.
Customize Cover Letters
It’s hard to figure out what the hiring managers want; but what they don’t want, for sure, is a labeled resume and a cover letter, copy-pasted from Google.
We support you in applying to as many positions as possible, but we highly disagree with one-size-fits-all resumes. You need to do concise research before sending an application; find the desirable skills and think about how well your performance can fit into a new corporate environment.
Practice Makes Perfect
To stand out in a crowded room full of applicants, you need to show off impeccable communication skills. The employers need to see you’ve done research on the company, and you want to be part of it.
Download interview questions online; practice your responses in front of family members and friends. Communication skills are the ones making one candidate stand out over another one with an identical background. To impress a hiring manager, you have to present yourself confidently, and that requires practice.
Take Care of Social Media
If you’re active on Facebook, LinkedIn, even Instagram, or Twitter, you have to be careful. Look at those accounts through the employer’s eyes: is that the same person coming to an interview? Or is it somebody they don’t want to join the team?
On the other side, a smart comment on LinkedIn regarding global issues can show you as an interesting candidate, who’s not afraid to express a personal opinion. I think your best way Youtube Tv Promo Code
The unemployment rate in the U.S. is now lower than it was during the pandemic times. According to the Bureau of Labor Statistics, the national unemployment rate edged down to 3.5% in July 2022. However, it’s not the reason to forget that the problem ever existed.
There’s a lot to take in when you lose a job. The circumstances don’t matter; what matters is your emotional state and desire to start a new chapter in life. What’s most important — is don’t get discouraged, and remember there’s always a sunrise after a dark night.