How to Survive in the Event of Job Loss 

Losing your job is a catastrophic blow to anyone.  There are plenty of emotional issues to deal with, but keeping your financial picture stable is the most important place to concentrate while looking for another job.

The first thing to do is to cut down, and stop all expenses that are not absolutely necessary.  Don't pay $3.00 for a cup of coffee when you can make a whole pot at home for $1.00.  Consider going to basic cable or none.  Look at every avenue to cut expenses. 

You will be feeling very down, but you need to adopt a "take charge" attitude.  First, have a meeting with your spouse to agree on a plan of action.  Once you are in agreement, have a family meeting with the kids and explain that there will be some temporary challenges.  Don't feel bad or ashamed; this is a very good lesson for children.  Explain that this is a reality that most people encounter at some point in their lives and now it's time to work together to get through it.  You will be amazed at how much a part of the solution they will want to become and how this experience will serve them in the future.

Put away all credit cards.  If you have a mortgage, car loan, credit card or other payments due, call the lenders. If you have been making your payments on time, some lenders will allow you to skip a payment with no extra charges added to your account. Some mortgage holders will allow you to pay only a portion of the payment due or allow you a free month. The important thing to do is to call them before they call you. It's in their best interest that you not default on the loan. Explain the situation to them, tell them the amount you can afford and most of these creditors will be willing to work out a plan with you.  But, remember that this is a temporary grace period and the bill will come due shortly. 

Take advantage of any help offered by your former employer, such as career counseling or severance packages. If you cannot be covered under a spouse's health insurance, you usually have 30 days to convert your group insurance to an individual policy under a federal assistance program called COBRA. allowing you to continue your group insurance coverage for 18 months. COBRA charges can be very high, so search the internet for health insurance and you will probably be able to find a "gap insurance" that is less expensive than your COBRA premiums. 

If you have a 401K with your previous employer, make sure you convert this into your private retirement account, or start one with a bank or investment broker, through a roll-over.   

Immediately apply for unemployment insurance. It's all done over the internet today (no more offices) and is a state service.  Search the internet for "unemployment claims for (your state)".   While it's not a lot of money, it will certainly help for necessities and you have earned this right so don't be embarrassed about it!   As soon as you begin to receive unemployment benefits, you will be alerted to all the state resources in your location for job-hunting, training and other assistance.

Network! Tell everyone you know about your situation and what kind of job you're seeking and ask them to pass the word to some of the people they know. If some "friends" disappoint you, don't waste time on negative energy.  Register your resume and apply for jobs on all the online job sites such as Monster.com, Careerbuilder.com, or many of the other jobsites available.  Keep in touch with previous colleagues in your industry; they usually know where the jobs are.

Make lemonade out of lemons!  Take this valuable time to bond with your family.  Take a walk with your spouse.  Play board games or cards with your kids.  Read to them.  Go to church.  Put some hot-dogs on the barbecue.  This is all FREE.  Not only does it take your mind off your troubles, it strengthens your most important relationships for which there is often "no time" when you are working. 

If your unemployment insurance runs out and you're still searching for a job, consider taking an entry-level position such as working at a fast-food restaurant. Although the pay is usually minimum wage, you can work an evening shift that leaves your days free for your job hunt. Consider hiring on with a temp agency. Although you won't have any insurance, most temp jobs pay as well as, if not better, than a regular employee makes. 

Going back to the family, engage them in strategies that allow everyone to contribute to the saving of money, such as turning off lights in unoccupied rooms, saving on water consumption and learning to love Mac & Cheese.  If you don't have a contract with your day-care provider, consider pulling the children from the program temporarily and take care of them yourself as you continue your job hunt. 

Finally, if the situation warrants, consider asking for government or private assistance. Some states will extend unemployment benefits in certain circumstances. Be sure to check into that option. Many churches have food banks that are open to everyone. Don't let your pride stand in the way of taking advantage of every resource. 

And finally, when you get that great new job and your life stabilizes, don't forget to thank everyone who helped you in your time of need, especially your family.