How to survive a layoff

If you’ve been laid off, it’s important to re-evaluate your finances. Here are some tips to help you manage the situation until you find another position.

Evaluate the situation
Review your savings and adjust your budget accordingly. List your recurring expenses, including those for your cable, cell phones, medications, rent and mortgage. Then, tally up what income you have, if any, and determine for how long you can make ends meet.

Decide where to cutback
You probably won’t be able to maintain the lifestyle you’re used to while you’re unemployed. Start by making sure you can cover essential costs, such as those for food, medication and shelter. Then, cut back on unnecessary spending (such as by terminating subscriptions or at least putting them on hold). You should also talk to your financial institution to see whether you can renegotiate bill and credit payments. It’s also important to avoid taking on any new debt.

Secure income sources
You’ll likely need to supplement your savings while looking for work. Don’t wait until you’re struggling to meet basic living expenses before looking into securing unemployment benefits. You may also want to consider getting a part-time job until you can find something more permanent.

For more advice, don’t hesitate to speak to someone at your financial institution, as they could help you find ways to minimize costs while you find work.

Be prepared
Experts recommend having an emergency fund with sufficient savings to let you live for three to six months. In addition, maintaining a strong professional network could make finding a new job much easier. Periodically updating your resume and attending networking events is a good idea, even if you aren’t expecting to be laid off.