After many years of just a trickle of work being offered through my husband’s union hall, the Columbus area is now booming with an influx of construction jobs. So much that jobs are actually sitting on the window at the hall unfilled. I have to say, it’s a great spot to be in, in the moment, but I know that with the cyclical nature of construction booms, it’s only a matter of time before it’s back on the downswing. After all, it was less than a year ago that the possibility of a layoff was always looming over our household, a very stressful spot to be in.
It feels like we’ve experienced more than our fair share over the years… A layoff is never convenient, but some times are definitely less convenient than others. There was the time my husband was laid off the day before Christmas Eve. And there was also the time that he received his notice the day after Christmas. And the worst of all — when he literally got laid off via a voicemail while we were in the delivery room, as I was giving birth to our fifth child.
I mention all of this because I believe many of you are in the same situation. Despite the falling unemployment rate, I know that those numbers are somewhat skewed by workers who’ve simply given up looking for a job. So I thought this might be a good time to bump up these tips for what to do if job loss is a possibility and what to do if you lose your job…
If a job loss is still just a possibility:
Cut back your spending immediately. Review your bills and look for areas where you can start to scale back. Start small by trying to cut just $1 a day from your expenses and increase your savings from there. Learn how to maximize your savings at drugstores and grocery stores and add these additional funds to your emergency account.
Consider purchasing supplemental income insurance. SafetyNet is among the simplest forms of insurance. It will pay you a lump sum in the event of a layoff or other unexpected job loss! The premiums are surprisingly affordable, starting at just $5 per month. If you need to file a claim, the payout can be used for anything you wish – rent, groceries, utilities, whatever you need. Signing up is easy with just three simple questions, no credit checks.
Build a stockpile. Hopefulone and Erin both wrote excellent guest posts on this topic. In the event of a layoff, being able to cut back your grocery expenses by eating from your stockpile is a huge blessing.
Pay yourself first. Start building an emergency savings by setting up an online savings and having money automatically drafted into it from your checking account each pay period. Transfer the money saved from any cut backs into it as well. Every little bit helps!
I also can’t recommend the book Profit First enough. I’ve been using the method discussed in it for about 6 months now, and it’s totally transformed both my business and personal finances.
Start paying just the minimums on any debt. While not ideal for getting out of debt, this will help with your immediate cashflow. Funnel anything extra you were paying into your emergency account for the time being.
Get a handle on the job market. Check out the classifieds and online job postings. Start doing a little networking to feel out the situation in your industry, and update your résumé so it’s ready to go.
If you lose your job:
Negotiate for additional benefits. Most companies will offer the standard severance of unpaid vacation and a good reference, but you may be able to haggle for more. Ask for additional compensation based on years of employment, extended health benefits, or reimbursement for job placement services. It’s likely that companies will be willing to provide one or more of these to avoid negative publicity. You won’t know unless you ask!
File for unemployment. Generally you should do this immediately because there’s a one-week holding period; however, from experience I can tell you there’s one exception to that. If it’s close to the end of the year, it might be in your best interest to wait until the new year. Compensation rates often increase every year, and by waiting a few additional days you may be entitled to more money. We learned this the hard way when my husband filed back in 2005. If he had waited a mere four days, we would have received an additional $40 per week in compensation. Check with your state agency, and if you can stick it out for a few days, do so.
Communication is key on all levels. Let your family members know about your situation. Explain to your friends that you’ll have to cut back on entertainment expenses for a while. Get the word out to your social network. You might be surprised by a job lead from an unexpected source. Finally, contact your creditors immediately if you see yourself starting to fall behind on your bills. They may be able to offer some sort of temporary solution.
Seek out additional resources. These may vary by location, but it’s a good idea to see what’s available. Don’t EVER be embarrassed to take advantage of whatever programs are available to you. There’s no shame in doing what it takes to keep your family from financial disaster.
A few to consider:
- WIC
- Food stamps
- Medicaid in your state
- Food pantries
- Energy assistance programs
- Your church
Your state department of job and family services may have additional suggestions. Don’t be afraid to ask your unemployment case worker what you’re eligible for.
Cut back your budget to all but the necessities. When it comes right down to it, things like cable, cell phones, and Internet can probably all be eliminated. Look for free sources of family entertainment such as free DVD rentals from Redbox. You might be surprised at what you can do without when it really matters.
Start looking for a new job immediately. Take advantage of any outplacement resources offered by your former employer. In most cases you will be required to report on your job search regularly to your unemployment caseworker, so you’ll want to maintain a log of companies you apply with and any responses you receive.
If you’re a union worker, as is my husband, you may be in a different position. He must wait until his layoff number on “the list” is high enough to win a bid on a job. I know the particulars vary by union, but in our case looking for work outside the union could mean thousands of dollars in fees and fines.
Be sure to stay in close contact with your union hall’s hiring manager, and ask about any additional resources that your hall may have to offer. You may be able to take a travel position and work out of another union, as my husband has done on several occasions. Or this might be a good time to take advantage of any continuing education programs available to you. Additional certifications could make you more valuable to employers and therefore less likely to be low on the list when layoffs occur in the future.
When you find new employment:
Keep your frugal ways in place for a while. Pay off any debt accrued during your unemployment period, build your emergency savings back up, and better prepare yourself financially in the event that it turns out not to be a good fit or for future cutbacks.
There’s no such thing as job security these days. Especially with the fluctuating economy, it’s important to be prepared as best as you can be for a sudden loss of income. Losing a job is never easy, but you can definitely prepare yourself so that it’s more manageable.
I certainly would not wish a layoff or job loss on any one of you, but I hope that these tips give you some hope in the event that you should need them.
Have you survived a major loss of income in your family? Do you have any additional tips to share?
This is a sponsored conversation on behalf of SafetyNet; all opinions and text are my own. Thank you for supporting the brands that support this site!
Nancy J.
I’ve enjoyed all the input to your site. Things are really tough for alot of people. My family is grown and gone but all is struggling. They look to mom and (grandma) to help out. I now have them exchanging coupons and rebates to help them out. I always buy in bulk, it is cheaper. Bought the daughter a meat slicer so she could make the meat go further. It definitely was a cheapy, but will serve the purpose. The other daughter, told her to start taking the veggies out of their bags and line the veg. drawer with paper towels. Put a layer of veg. in and add another layer of towels, then more veg. another layer of towels on the the top. Vegetables will last a couple more weeks than normal. Don’t wash them first, only as needed. Mom taught me this along time ago, but had forgotten until times really got rough. Keep the chin up through the rough times, you’ll make it.
Christy
I will keep your family in my thoughts and prayers. Hang on, hold on tight, weather the storm and together you will come out stronger and closer than ever before.
~God Bless~
Christy
Kimi
Thank you for all your tips to help others who are struggling during this troubled time. My husband just got laid off this past week, and we had just got done buying a new home. Things have been a little rough, but tips from your blog have helped tremendously! I’ll keep you and your family in my prayers! Thanks again for all you do!
Wendy
First of all I want to see that you are doing a marvelous job helping your family! I check your site everyday! You are helping my family as well. My goal is to keep track of my savings this year to see exactly how much this does help my family.
Secondly, I volunteer at a mission in my hometown. We provide food and clothing based on income. I have never seen anyone come in that was turned away. Most people think they wouldn’t meet the qualifications to receive help but they do! We are there to help people for just the sort of situation that you are in. I just wanted to encourage others going through this same situation to ask for help. Its what we are there for!!
tatum
i understand about hard times and at all the wrong times in your life too.
last year i had my second son and right after that my husband got cancer. he almost died, had really harsh treatment, became a skeleton, had a partial hand amputation and then miraculously recovered. then he went back to work, went crazy and abandoned me and the boys. i was devistated. we are seperated now about 9 months but he was paying the bills at least until his doctors discovered a new growth in his hand and then his job of 6 years where he was a mananger of a cell phone store fired him (probably because they knew he’s be gone from work again for a long time). so this was right before christmas, i was seperated, with no money, no husband, in tears and destitute for my little boys on so many levels. i only discovered your website and “couponing” and stockpiling a month and a half ago, and it has given me hope for how to survive things like this better in the future,……because hard times come and go, next time i am going to be prepared. i wish you best of luck, but it looks like you are strong and know how to get through these things. thanks for the hope for my life, it’s been a rough two years………………..and i am ready to take back the control….even if it’s only on a financial level.
Sarah
Thank you for your encouragment and tips for everyone. I will pray for your family thru these trying times.
One tip I thought of was for those that still have job security, no matter how permanent. It goes against our “have it all now” society, but we are paying off debt. We have no savings, although we do have a stockpile of toothpaste, soap, food, etc. (THANK YOU!) Until our debt is paid off, at least all but the house, we won’t be saving $$. It has taken 2 years to just be down to one credit card, student loans, and the house mortgage. Once we downsize the house, if that works out eventually to sell, we can be completely debt free. This relief is amazing!! Just 2 years ago, I was debating about asking the local church/shelter for toilet paper or starting to use washrags (I know–gross!). That was the bottom and I can now relate to all those on food stamps, medicaid, desperation to feed your family, etc. I would encourage people to ask the church for help before going to the government. IF the churches did their jobs of caring for one another, the government wouldn’t have needed these programs.
Actually, we just don’t realize how much we can do WITHOUT and until people start doing without and paying off that debt that keeps them in chains, they can’t be financially free.
Sorry about the tangent, I just really wanted to just post and thank you for all you do!!
Jennifer
I have been very blessed and encouraged by your posts. So sorry for your husband’s recent job loss. It’s my prayer for you that all that you’ve sown into the lives of others (thru this blog and I’m sure in many other ways) will come back to you 100-fold! God bless and prosper you and your family.
Brandy
I’m so sorry to hear about your husband’s job loss, especially during the holidays. Thankfully it sounds like you are taking a sensible and positive approach to the situation. And thank you for sharing your tips so that others may benefit from your good advice.
Brandy´s last blog post..Merry Christmas Eve
sally
I was laid off this year, too. Technically, my contract was severed b/c I worked part time (my choice) for a company, but was employed by a temp agency. I had a week’s notice, which is better than nothing, I guess. My interest in saving money on groceries was there before this, but I’ve really picked up the pace since my last day of work (just before thanksgiving). Thanks for all your tips…I’ve learned A LOT!
sally´s last blog post..Merry Christmas!
angie
Hi there,
I saw ur tweets about this the other night and I am so sorry to hear this, but it sounds like u have quite a few good tips here!
You all are in my prayers! I personally cannot believe that someone left a VOICEMAIL laying off your hubby last year?! Wow… it never ceases to amaze me!
Good luck with everyone, and trust the HE has a plan for you!
Blessings,
Angie
Elizabeth
This saddens me to hear of someone else struggling as we are now. My husband lost his job 8 weeks ago. I do not have a college education and I am now supporting a family of 4. We send our kids to a private Catholic School and now are having to make the choice between sending them to a public school or using all of our savings to pay their tuiton for next year. They both love their friends, teachers, etc. and we may have to take this away from them and start over elsewhere. Because I have been so frugal all my life and used all of my paychecks for their Catholic schooling we do not qualify for need based aid. I have paid all my debt off and I am one of the fortunate ones blessed to have lived my life frugally for 25 years. We have so many blessings and we don’t realize how many until our livelihood is taken away. Thanks for all your wonderful postings for REDBOX free entertainment, CVS, and Walgreens. I have learned so much more over the last 2 months reading your blog. Our prayers are with your family and others during this difficult economic times.
Just me
I read with quite a bit of sadness about all the layoff’s etc. going on with this “sampling” of America. I am a small frugal business owner, fully personally debt free . Cut my salary first, hubby’s second, cut every expense of the company I could — but I am going to have to lay an employee off in the next few days. Makes me so sad to have to do that. Company has been in business over 23 years but the work just isn’t coming in, and despite all the cost cutting trying to avoid this, sadly it’s going to have to hit the employees next. It’s unavoidable.
Paulette
Sorry to hear of your husbands layoff. My husband and I have been laid off several times over the 20+ years we have been married. We have always managed to bounce back. Five years ago I was laid off. A few months later my Dad suffered a stroke and was unable to care for himself. With my husbands blessings I was able to care for him. Dad and I found your blog sometime last year. I would read it to him and we decided you were a pretty savey kid. We even sent a few emails to you and you answered back. Dad passed this last October.We had already used many of your tips and had all his Christmas gifts bought. Gifts from Grandpa surprised grandchildren and great-grans. Thank you for all the gifts you have given to all your readers. I am a true believer of what goes around comes around and know in my heart that you and yours will be fine.
Qtpies7
Those are great suggestions! I wish we had known a lot earlier that we would have a layoff. It didn’t concern us much at first, because we knew it would come with a large severance, which actually included them paying almost all of our Cobra. But the money is dwindling fast as the job search is going nowhere.
We are looking at unemployment, and I am so glad that you posted that about waiting until January.
One of the first things we did was to sign up for free lunch at school. Even though we made well above what the income level is, we no longer have any income, so we qualified, and it stays in place the rest of the year, even if he gets hired soon. That gives us free sports and extra-curricular activities, as well.
I am going to check WIC, even though we just ended it due to our children’s age, but maybe with no income we will qualify again, we still have a 2 and 5 year old.
Another thing we are looking at is getting our mortgage interest reduced quite a bit. There is a company that will negotiate for us, but it is pricey. I just don’t know how to go about doing it myself. They think they can save us $600 a month, though. That would be amazing!
I am going to start with the coupons and look more into the Walgreens/CVS thing, too. They are not close, so I hadn’t started yet, but now the savings may well be worth the gas to get there.
Qtpies7´s last blog post..Drew’s home!
sagemom
So sorry to hear about this…earlier this year, the 60+ year old company that I worked at for almost 10 years shut down w/a days notice, and 3500+ people were out of a job. It was the biggest layoff in Hawaii’s history. And a few weeks before that happened I found out I was pregnant! However, I truly believe everything happens for a reason…and things will always work out in the end.
I’m so glad to have stumbled upon your site and get great advice and tips on saving $. I only wish more of the stores were in Hawaii!
SavvySuzie
Great post. We dealt with a layoff over the summer and it prompted us to live much more frugally and put many things you mentioned into practice. We’ve had to keep it up because though my husband did find another job, it was much lower paying….we figured that any job was better than no job until he can get back into his field, but it forced us to keep the purse strings tight. Will definitely keep you and yours in our prayers!
SavvySuzie´s last blog post..What snow? CVS calls!
Cathi
This is a very scary economic time. I know how difficult it must be for you. Your advise is very good and I thank you for sharing.
Cathi´s last blog post..
Lisa
Boy, to get laid off by voicemail while your wife is in labor – that does pretty much take the cake. I’m sorry your husband got discouraging news this year, and I’ll keep y’all in my prayers, that you’ll make it through this round of worries and that he’ll find a good job soon. I don’t always post, but I do enjoy your blog, and it’s a blessing and a help to me and my family.
Lisa´s last blog post..Nearly three hours later…
Mary Hall
I realize I might be a little out-of-date (I’ve been browsing your site randomly) but ouch on the voicemail lay-off.
You might also know about this but I’ll share it anyway: you can also raise funds by selling old electronics. It probably won’t yield much but it should help :)