 | Children, Husbands, WivesTips on How To Weather a LayoffPosted Monday, June 8th, 2009 and visited 285 times, 1 so far today by MInTheGap |
By now I feel like I’m getting to be an expert. This being my second layoff in seven months, I have to say that knowing that one is coming doesn’t make it any easier.
A layoff can be a difficult time—especially depending on how you take it and how well you have prepared.
Let’s take a brief look at how you can prepare yourself and your family for the possibility of a layoff.
Emergency Fund
Anyone that is living through these current times that does not have some kind of emergency fund is simply not being realistic. But how big should your emergency fund be, and what constitutes an emergency?
The truth is, life always presents the unexpected, and that’s how I define an emergency. You know that your car will wear out, that the furniture will need to be replaced or that an appliance may need repair. Those things you should plan for, but should not constitute an emergency.
An emergency is anything that a person would not reasonably plan for. Here are some examples:
- Loss of job
- Injury on the job
- Multiple things going wrong at the house at the same time
Basically, the more you have saved for planned events, the less necessary your emergency fund will have to be.
How much should you have saved? Studies suggest that you should have about 6 months living expenses saved. To figure out how much this is, take your budget (you have one, don’t you?) or add up all the bills you have to pay, factor in how much you would need for living expenses (household, groceries, etc.) for one month, then multiply this by 6.
A good rule of thumb is to have approximately $15,000 on hand in case something happens.
If you have a good emergency fund, then a layoff is not bound to impact you as much, simply because you are prepared for the event and you don’t have to wonder where the money is going to come from to feed your family.
Also, keep in mind that unless you’re a two income family, you will have to pay for some kind of health insurance unless you are young, or can go for some time without.
The Right Frame of Mind
If you live in a way that you are dependant on your job, and you’re emotionally invested in it, then you will have a hard time living without it. The truth is, most layoff occur for business reasons—not personal ones. It’s not because you’re a terrible person, or the boss doesn’t like you, but for the purely business reason that they cannot afford to keep you.
Now, I know that this is not always the case, but keeping an honest opinion about what’s going on is important. If there is a problem with your work performance or something that you are or are not doing, then fix it!
Having the right frame of mind will help you to be able to accurately gauge where your strengths and weaknesses are, and also where you need work. For the most part, there are jobs out there—you just have to be willing to find work where it is and not be too proud as to take something that may be a little less then you were in order to work your way back up.
Look at this as an opportunity to change—and people deal with change in different ways. You need to approach this as the beginning of a new adventure. Remember the past, look back at what you’ve learned objectively, and then start pressing forward. Dwelling in the past is a recipe for despair.
Lastly, enjoy this time with your family. Don’t go crazy on the celebrating, but do take the opportunity to connect with them. Spend the time that you would have been working (that you’re not actively looking for new work!) playing ball with your boys, taking those bike rides, or spending time connecting with your spouse. That way, you’ll look back on the time without work fondly, instead of as a time when you were mean with everyone around you.
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