What To Do If You've Lost Your Job

Remember, it's not the end of the world

from daveramsey.com on 23 Feb 2009

A job loss is not the end of the world. For many people, it's just the launching pad to a new, more fulfilling career. It can also be a great time to re-prioritize the plan for your money or actually create a plan.

Here are seven things to get you started on a plan that works in the good times and bad.

Stop paying extra on your debt. If you've been attacking your debt snowball like crazy, refocus that money and momentum to save a big emergency fund.
Sock away the extra money to build up your emergency fund. If you get a severance, make it a part of your shopping emergency fund.
Do a budget. Download free budgeting forms. Focus on your necessities first—food, shelter, utilities, transportation, and basic clothing. The creditors can wait.
Cut way back on your lifestyle. Home-cooked meals and library books should become the norm.
Cut up the credit cards. Nothing good can come from using them. If you don't have the cash, don't buy!
Get a part-time job. Yes, they are available. Do everything you can to still generate some income until you find a new full-time job.
Think about your skills and decide if now is the time to start a small business or change careers. Your options are limitless!

Some people who find themselves unemployed will go into new careers or start their own businesses where they have the best year of their lives—professionally, financially and emotionally. Their current job loss is actually a blessing in disguise. That's how they are looking at the situation and formulating a game plan based on it. It's the best outlook anyone can have!

If you haven't lost your job but dread going to work, maybe it's time to fire your employer and go in a new direction. When you have a game plan for your money and career, you will have a sense of empowerment because you aren't a slave to the lender (or employer).

Go! Make something happen!

Tell your money where to go and start a budget with our free budget forms.

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I have always wanted to drive big-rigs but always allowed teachers, counselors, and society to steer me away. Went to college for engineering but it wasn't for me. I worked in municipal utilities for 5 years with great benefits. After much praying, talking with my wife, and reading '48 Days to the Work You Love' I gave 6 weeks notice to my city job and am now in school learning to drive tractor-trailers. I love every minute of it! Yes, it sounds crazy to leave your job in a recession, but I know it was the right thing to do in my situation. Now it is Dave Ramsey's principles (emergency fund) that allowed me the freedom to do this. A few years ago this would have been a pipe dream. I will be looking for a local driving job and someday would like to do heavy hauling/ oversize loads.
Mike February 05 2010 8:20 PM

I will be getting layed off after ~30 years from the Space Center. I'm 55.I have ~500k in 401K, 16K in savings. Severance pay will equate to 53 additional weeks of pay @ $1584.00 net per week. Mortgage balance 80K. No other debts. Question: To avoid paying excessive income tax, should I max out my 401K for the remaining 8 months left at work, or should I max out my take home pay to increase my available cash and take the Income tax hit?
Jeanne L. February 05 2010 3:10 PM

I am unemployed. I have been for 16 months now. I am trying to stay positive, but I am now in the critical stage with my creditors. Thinking that bankruptcy may be where I am headed. Any suggestions?
Patty H. January 04 2010 9:09 PM

I've been very interested for years in wanting to start and run my own small business but time, money, and responsibilities have always stopped me from following my desire. Now that I have finished school I can't come up with any one idea that really appeals to me to start a business doing. My interested are limited, I like business, marketing, and money as topics and I'm currently a business and marketing teacher. Is there any type of form or readings to follow to help a person discover and develop create ideas. I read many books on the subject or business and business startup, but havn't really found one to help with idea exploring. Any advice?
David January 02 2010 8:24 PM

I read your article 'What To Do If You've Lost Your Job: Remember, it's not the end of the world' and I had to smile. My job ended abruptly after 14 years with a notice of restructuring. It has been such a blessing! I was initially shocked with the news, hurt and downright upset, but after a few weeks I realized that I have been blessed with the life I have always wanted and by the grace of God our family is enjoying it. Thank you.
Yvonne October 14 2009 4:02 PM