No, the majority is not in danger of being laid off like they did a few years ago. This article is not meant to scare you or anything regardless of what you hear on the news.
We simply believe that being prepared is the key to surviving any crisis and that what we want to focus on right now. Surviving unemployment is tough (as most of you should know), but not if you prepare for it while you still have a job. We all want to stay in the same job for 10 years but we learned that nothing is really for certain.
With the government shutdown and the looming debt ceiling, there are many things that could go wrong for you. So why don’t we discuss what you should be doing in the event of an unexpected (or planned) unemployment.
What to do when you are laid off?
When you are told that you will be unemployed, you will feel a jumble of emotions – most of which are negative. If you have a family to feed, that is even more difficult. Some people could not take the pressure and end up just giving up altogether. Given the circ*mstances, that should be the farthest thing from your mind. If you do love your family, you need to stand by each other to survive this unemployment problem.
It is normal to feel the panic and self-pity but you should not dwell on these feelings because they can really paralyze you. Here are the things that you should do when you are suddenly laid off from work.
See if you are eligible for unemployment benefits. You can start your search through the Benefits.gov website. There are specific unemployment assistance programs that are sponsored by the government and you should maximize these. We will discuss later on how you can file your claims.
Check out the insurance policies that you got from work and see if you can continue them despite being separated from the company. You want to retain this insurance to remove at least one worry from you mind in case someone in the family gets sick.
Review your finances. Now is the time to take out your emergency fund and see how long you can stretch it out. Sit with your spouse to review where you stand financially. How long will your savings last? If it is not long enough, is there a way to stretch it even further? By knowing your finances, you have an idea how your family can fare while you are still unemployed.
Call your lenders and creditors. If you are in debt (most of us are), you should call your lenders and creditors immediately to discuss with them your current situation. Work out a payment plan that your current finances can afford or ask them to allow you to suspend your payments until you can find a job.
Create a new budget. Now that you know your finances, it is time to revise your budget. Make it as frugal as possible – depending on how much you have in your emergency fund. The lesser months it can cover, the more you should tighten your budget. When you have done the budget, go on a family meeting and discuss the situation with your kids. No matter how young they are, you have to loop them in. That way, they will not feel resentful when you start cutting back on the usual expenses or when you say no to some of their requests.
Look at other sources of income. If you did your preparations right, you should have other sources of income set up. You can choose one of them and focus on growing the funds that you can get from it. Try not to take too much risk because you can’t really afford any losses right now. But if you do not have any yet, take time to consider your options. You can start an online career. There are many part time jobs at home that you can look into. Or you can create a passive income business. If you have an extra room at home or you can spare the garage, convert it into a rental place. Since you have your house anyway and if the zoning laws allow it, have it rented for the extra cash it can bring.
Search for a day job. In case the other sources of income are not ideal to be your main source of cash, then start looking for a day job. See if you need to change careers. If the unemployment is widespread in the industry you came from, then it may be wise to go into another.
Update your employment records. Create a new resume, spruce up on your job interview skills and get in touch with your contacts to let them know you are in the market for a new job.
Filing for benefits when unemployed
When you are unemployed, it pays to know where you stand when it comes to unemployment benefits. Here are the important details that you must know.
You can file your application online. Of course, that depends on the state where you live but in most cases, you can do apply for your unemployment benefits through Internet. You can use the Benefits website set up by the government to find the link for your specific state. Sometimes, the benefit is called the unemployment insurance. When you file your application, you can either send it online or you can print out the form, complete it and fax or mail it to the appropriate agency.
In case your work and home are in two different states, you must file you claims in the state where you are working. In case your career requires you to work in different states, then your home state should be able to help you identify where to file your claims.
Be ready with the questions. Part of the application process is answering various questions that will prove you qualify for the benefits. These include your employer information for the past two years, the reason why you lost your job and other information about taxes and holiday or vacation pay that you can still claim.
You need to create an online account on the website where you will file your claims. This is the account that you will visit to make your application for the benefits you qualify for. You can monitor the status of your claims through this site.
Most unemployment benefits are paid through direct deposit, check or debit card. You have the option to select how you want to receive your benefits.
Try not to lose your head in all of this. Keep you calm and trust in your abilities to get out of this financial crisis.
