How To Prepare for a Possible Layoff

Losing your job for any reasons is nerve wracking. With jobs and the economy in such flux over the last couple of years, many people find themselves worrying about layoffs much more than in the past. It’s definitely scary. However, if you prepare for a possible layoff in advance, then you can navigate that transition much more easily. Here’s how to do that:

Start Saving Money to Prepare for a Possible Layoff

There are any aspects of losing your job that are frightening. However, the biggest thing is the money. Losing your income is terrifying. Therefore, set yourself up now so that this part is a little bit easier if a layoff comes to pass. Here’s what you can do:

Build up your emergency fund. Hopefully, you already have an emergency fund for just this type of situation. If not, you should start one immediately. You might also want to begin boosting it if you already have one.
Reduce your budget significantly. Most of us create budgets related to our income. However, we can usually scale back if we need to. Don’t wait for a layoff to make that change. Scale back now. You’ll add to your savings and also adjust to spending less money.
Learn about your options for unemployment. If you do get laid off, what rights do you have? Would you have access to unemployment income? Do you have health insurance options? Knowledge is power.
Start or grow your side hustle. The more you earn, the ore you can save. Moreover, if you have additional income coming in, then a layoff isn’t as scary.

Prep To Get a New Job

The next step to prepare for a possible layoff is to get ready to start applying for new jobs. Steps you can take today include:

Update your resume. Make sure that you also update it on any sites where you post it such as FlexJobs or LinkedIn.
Create a portfolio of your work. Gather together your success stories from this job.
Research jobs trends in your field. FlexJobs reports that you should look back at the past 5-10 years. This will help indicate whether you need new training, might want to look at positions that are similar but different to what you do now, etc.
Network. Make sure that you have connections to assist you in your job search should you need that help.
Get training and education to expand your opportunities. This might be within or outside your current field.

Additional Tips to Prepare for a Possible Layoff

FlexJobs and Investopedia also recommend the following:

Review your employee contract. Look not just at your rights regarding a layoff but also confirm that you’re getting all of the vacation pay, etc. that you’re owed.
Take advantage of all employee benefits before a possible layoff. Make your doctor’s appointments while you have insurance, for example.
Learn about how to negotiate a severance package. This will prepare you in case you need to do so.

There are three key areas where you need to focus: your savings, your next job, and your psychological wellbeing. Taking care of the first two helps a lot with the third.

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Kathryn Vercillo

Kathryn Vercillo is a professional writer who loves to live a balanced life. She appreciates a good work-life balance. She enjoys balance in her relationships and has worked hard to learn how to balance her finances to allow for a balanced life overall. Although she’s only blonde some of the time, she’s always striving for total balance. She’s excited to share what she’s learned with you and to discover more together along the way.