Debt-Free Forever by Gail Vaz-Oxlade (the beginning after the end read novel .TXT) 📕

It’s a cycle that is ever present in the economy—a cycle we sometimes forget about when the going gets good.

Often, when we find ourselves out of work, we duck and hide, embarrassed at our change in circumstances. And we spend. Unwilling to admit that things have changed, and with time on our hands, we spend and spend and spend.

So what do you do if you find yourself out of work?

STEP 1: TELL YOUR FAMILY NOT TO PANIC

Yes, things are going to be different for the short- or medium-term, but you’ll weather this together. You need to have a clear sense of what your priorities are so that you can work together to get through this without fighting, bitching, snarking, crying, or being afeard.

Include your extended family in the news. No point in pretending everything is A-OK. Brave and strong you might be, but accepting help when you need it the most from people who love you the most is exactly what family is supposed to be about.

Yes, you should tell the kids. You’ll have to tailor your communication to your children based on their ages. But they’ll overhear the adults talking, they’ll feel the stress, and they’ll internalize it if you don’t address it directly. So tell ‘em. Just reassure them that while some things are going to have to change, you are going to do whatever it takes to make sure the family is safe.

STEP 2: TELL EVERYONE YOU KNOW THAT YOU NEED A JOB

Many jobs never make it to the advertisement pages since people in a company will be asked whether they want the job or whether they know of anyone they could recommend for the job. The more people you tell, the better your chances are that someone will put forward your name. Be clear about what kind of job you are seeking and what your skills are. But also be open to experiencing something new and using your skills in different ways. If you hated your last job, don’t get another one just like it.

STEP 3: APPLY FOR EMPLOYMENT INSURANCE BENEFITS

While this is usually barely enough to keep body and soul together, it’s still better than a punch in the nose. Since it can take several weeks before you see a penny, the faster you apply, the less the amount of time you’ll be scrambling for cash. If you have received a severance, this will affect when your benefits will start. Severance or separation pay is paid out in a number of different forms and each is handled differently. Speak to your Human Resources or Payroll department to get the lowdown on how you’ll be affected.

Speaking of what you may get from your employer, check how long your benefits will stay in place and if you’ve got any vacation/sick pay coming. And if you’re entitled to reimbursement for expenses, file an expense report right away. While your employer is feeling rotten at having to let you go, ask for a glowing letter of recommendation.

STEP 4: START LOOKING FOR A JOB

Dust off your resumé. Hit the web. Some part-time work that supplements your income while you’re looking for a full-time job will help to keep you busy and focused on making things happen. One of the biggest problems with unemployment isn’t just the lack of money, it’s the abundance of time and the sense that this will never end. Get busy.

Consider job hunting to be your new job until you get the job you want. Get up early, get dressed for “work,” make a cuppa, and get busy. Spend at least 35 hours a week exploring work options. Demonstrate your discipline and determination by focusing on researching leads, networking, and interviewing.

Post your resumé online. Contact potential employers directly through professional associations. Promote yourself in unique ways. You have to stand out in an employer’s mind if you want to get noticed. Accept a temporary position or volunteer where you would like to work so your new boss can “try you on.”

There are several federal and local government resources that offer help with career counselling and job searches. Call your local employment office and ask about the services available in your area.

STEP 5: CUT YOUR EXPENSES

You need to cut back to the bare minimum so that you can make your emergency fund (you have one of these, right?) last as long as possible. Ditto your employment insurance benefits, your severance, your partner’s income, or whatever else you may have that you can use.

Find as many places as you can to trim back. Cut your clothing budget completely, except for kid essentials. Ditto your entertainment, gifts, and all other non-essential expenses. Trim back on food. Trim way back on communication (telephone, cell, Internet, and cable or satellite TV). Now that you have less, you must get creative. Is daycare still an option with one partner out of work or will you swing-shift to take care of the kids at home while upgrading skills and job hunting? Will you both take on part-time work to keep the kids in daycare so you don’t lose your spaces?

Since you may not find a job paying the same money, you need to decide what your Basic Costs of a Good Life are so you know how much salary you can live without.

I bet you’re really glad you started that emergency fund. No emergency fund? Oops. Are there things you can sell to make one? The motorcycle? The ATV? The second car? Well, your severance can pick up the slack. No severance? Ouch. I guess you’ll just have to get your butt out there and find a job, two jobs, three jobs … whatever it takes … to keep it all together. And, NO, a line of credit is not a good emergency fund, no matter what you’ve been told. If you think coping with unemployment is hard, try doing it while making debt repayments. Sure, sure, you’ll eventually get another job. But if you’ve dug yourself a helluva