Archive - Lost My Job – Now What? RSS Feed

SERIES: I Lost My Job – Now What? – Part Four

Welcome to the latest series on JosephSangl.com – I Lost My Job – Now What?

In a time of increasing unemployment and job loss, I thought it might be helpful to write this series.  It is my hope that it is a help to those who have experienced a job loss.

Part Four – Resolve to never give an employer such power again!

If you have been laid off and are panicking about what to do, let me ask you a question.

If you had $20,000 in the bank, would you be as panicked as you are right now?

I suspect the answer would be, "Not nearly so much as I am right now.",  or "Not at all."

When you build a HUGE emergency fund of at least six month's worth of expenses, you build a hedge of protection around you.  It protects you from being horribly impacted by your employers decision to cease your employment.

Do not get me wrong.  A pile of money does not address all of life's issues nor is it a worthwhile item to place one's trust in, but it is excellent stewardship to hold financial reserves.  It just makes sense!

So …  If you have not experienced a job loss, resolve today to get rid of some expenses so that you can build up an awesome emergency fund.  If you have lost your job, resolve to never get into this predicament ever again!

You CAN do this!  Saving up a ton of money and denying yourself of some wants might not be fun in the short term, but it is SO WORTH IT!

So that is it for the "I Lost My Job – Now What?" series.  Is there anything that should be added to it?

Read recent posts

SERIES: I Lost My Job – Now What? – Part Three

Welcome to the latest series on JosephSangl.com – I Lost My Job – Now What?

In a time of increasing unemployment and job loss, I thought it might be helpful to write this series.  It is my hope that it is a help to those who have experienced a job loss.

Part Three - Stay Away From The Doubters, The Naysayers, and the No-sayers

I have seen it countless times.  A person is in a financial pickle and is pursuing income, and they allow others to shoot down their ideas for generating additional income or reducing outgo.

Here are some examples:

  • "You don't need to get a second job.  Think about how hard that would be."  Oh, so this is supposed to be easy?
  • "You can't possibly get employed there.  They only hire such-and-such type of people.  Not you."  If you don't apply, you DEFINITELY will not get the job!
  • "Why would you sell your motorcycle?  I will go broke before I sell mine."  Always check the financial advice against the financial condition of the advice-giver.
  • "Why would you go to a financial counselor?  That is just admitting that you are in a bad financial situation, and they will yell at you for it!"  Look, the fact is that it is a tough financial situation.  As a financial counselor, it does no good to yell at someone about past financial mismanagement or a tough financial situation.  A good financial counselor is focused on preparing a plan to walk out of the current crisis and prevent future ones.
  • "Your grandparents struggled with money.  Your parents struggled with money.  You will struggle with money."  Wrong.  Just plain old wrong.

Remove the negative people from your life.  Focus on using this job loss as an opportunity to go do something you have always dreamed of doing or as a stepping stone to get toward your calling.

I wonder what other negative statements you have heard (or are hearing) as you went through a job loss? 

Read recent posts

SERIES: I Lost My Job – Now What? – Part Two

Welcome to the latest series on JosephSangl.com – I Lost My Job – Now What?

In a time of increasing unemployment and job loss, I thought it might be helpful to write this series.  It is my hope that it is a help to those who have experienced a job loss.

Part Two – Understand And Fill The Gap 

I have met a lot of people who are so overwhelmed with making their financial ends meet that they have given up hope.  They have despaired of making it work at all.

This is not the case!  It CAN work.  It CAN be dealt with!  It is NOT hopeless!   However, you must understand the gap and fill it.

What is the gap?  The gap is how the amount of additional money needed to make the budget balance.  While the US Government might print more money to "fix" the situation, we cannot do that (although it does come with free room and board if you do print your own money).

Prepare a written spending plan using the priorities discussed in Part One.  This will allow you to understand the gap.

How do you fill the gap?  Well, using our equation, INCOME – OUTGO = EXACTLY ZERO, there are two ways – reduce OUTGO or increase INCOME.

Reduce OUTGO

  • Eliminate unnecessary expenses (cable, internet, home phone, cell phone)
  • Requote homeowners (or renter's) and auto insurance
  • Modify entertainment to no-cost and low-cost options (movies from library, hiking, swimming at the lake, fishing, Hulu.com)
  • Eliminate health club membership (run outside)
  • Sell the car and purchase a paid-for beater
  • Groceries: Buy off-brands, use coupon services, prepare more food at home
  • Car pool
  • Work from home

Increase INCOME

  • Apply for jobs like crazy – monster.com, hotjobs.com, careerbuilder.com
  • Get a job – any job will do for the short term – contract/temporary positions, deliver pizza, clean houses, fast food, work for a family member, commercial cleaning, deliver newspapers, polish shoes, wait tables
  • Sell stuff – yard sale, Ebay, Craigslist.org

What other ways would you or have you increased INCOME or decreased OUTGO?

Read recent posts 

SERIES: I Lost My Job – Now What?

Welcome to the latest series on JosephSangl.com – I Lost My Job – Now What?

In a time of increasing unemployment and job loss, I thought it might be helpful to write this series.  It is my hope that it is a help to those who have experienced a job loss.

Part One – Prioritize.  Prioritize.  Prioritize.

When one loses their job and paycheck, all expenses must immediately be prioritized.  Some might need to be reduced, and others need to be eliminated.

Let me be state some items that are WANTS.  Cable/satellite TV, internet (YES!), cell phone, home phone, dining out, entertainment (the type that costs money), and clothes.

Let me be clear, I have met hundreds of people who have "tried to hold on" to items that were WANTS not NEEDS.

Here is my general order of priority for expenses:

  1. Food & Medicine (groceries – off brand/generics)
  2. Housing/Utilities (loan, insurance, taxes, utilities)
  3. Transportation (loan, insurance, taxes, gasoline)
  4. Secured debts (boat, motorcycle, four wheeler, furniture,etc)
  5. Unsecured debts (credit cards, student loans, etc.)

Take some time to put together a written spending plan.  Once all of the expenses are itemized, prioritize them. 

Read recent posts 

Related Articles

Next Steps – Budgeting Tools Page