Dealing with job loss

After the initial shock of losing your job subsides, you have to get back on your feet again. Here is a practical guide on how to do it.

The solution to handling job loss is to accept it, deal with situation and start aggressively looking for a new job. Running away and hiding is not going to solve anything. You are going to feel angry, depressed and frustrated, but at the end of it all, you are going to have to deal with it. It will be easier if you:

Accept reality
One of the first things you have to do when you are without a job is to accept the harsh reality that you have no job, no income, and you have to start looking for a job all over again. Angry, frustration, shock and acceptance are emotions you will go through. Once you accept the facts, you have to figure out what to do next. What are you going to do to get through this situation? This is the first question you should ask yourself.

Understand your finances
Most people have a false sense of security where their finances are concerned. They think that they have enough money to live on for the next year or the next few months and that this will give them sufficient time to find another job. This is not the case. Meet with your accountant and find out the true condition of your finances.

You may not have enough money to support you for the next three months, let alone one year. The position of your finances will help you understand and evaluate what needs to be done next. Do you need to take up a temporary job to support yourself or your family while you work at getting the ideal job? Do you need to take a loan? These questions, once answered, will help you chalk out a plan. While understanding your finances, you also need to assess your cash flow, debts, savings and assets.

Formulate a plan
This is the most important step in dealing with your job loss. Formulating a plan gives you a systematic and step-by-step guide on what to do and when.

The first step is to get your entire family involved. This means inform your kids, your spouse, parents and in-laws that you are now without a job. This will help them be more supportive towards you. They can help you save money by cutting down on expenses. Always prioritise your debts. Knowing which bills are of utmost importance and which need to be paid first is necessary to avoid any financial problems right from the start.

Expenses and income needs to be proportioned. This helps you to know about your spending power. Avoid using your credit card as much as possible. Inform your creditors of your situation as this will help them be more understanding towards you. Get a credit counsellor to handle your finances and to help you with your credits and creditors.

Get the right perspective
You have lost your job and are unemployed. It is a bad thing, but you need not look at it that way. Looking at it with a positive attitude gives you the right perspective to deal with the situation. To have the right perspective, you need to accept that bad things happen, that this is a temporary phrase and will pass, and that the important thing is to focus on the things you have and not what you are missing.

Dealing with a job loss is not easy; it happens to many and to the best. The key to recovering is doing it with grace and dignity.

Wisdom from Human Tony Jacowski