Guest Blog: Advice for People Recently Laid Off

Meg Green, a certified financial planner at Meg Green & Associates and a Sunday business columnist at the Miami Herald, is guest blogging today about how to handle your finances if you are laid off.

*MEG'S TIPS*

1.  Check on your eligibility for unemployment benefits and apply immediately. Any individual who has been employed in Florida in the last 18 months and is currently unemployed or partially unemployed can file a claim. If eligible, your benefits may start the second week of unemployment. Call 1-800-204-2418 for the Claims Assistance Center.

2.  Consider working for a temp agency until a match for you is found. Or look for spot jobs, like baby sitting, tutoring, substitute restaurant server or receptionist, dog walking, to help keep you afloat. This way you will keep money coming in the door but have flexibility if you get interviews.

3. Sell things you no longer want or need, like old jewelry or Grandma’s clock. With the prices of gold and diamonds so high, you’re bound to clean up. Try Ebay for your stuff…even old clothes and shoes, if in good shape.

4. Review your living expenses and reduce/eliminate discretionary spending until a job is secured. This means eating in, making instead of buying presents, whatever your creative mind can come up with to save. Pull in the belts, and make it a family affair. It’s no secret you’ve been laid off. Don’t hide it from those that have control of your wallet and credit cards, like spouses and kids. Everyone needs to tough it up temporarily.

5.  Have your resume reviewed by a professional service. This often gives the biggest bang for the buck as your resume is your first impression. Be flexible in what you’re looking for. The ideal career job may be elusive right now, so consider whatever you can (legally) do and go for it.                                                                        

6. As a very last resort, consider a hardship withdrawal from your 401k, but leave that for last.  And try to avoid borrowing from friends and family. It’ll be so difficult to pay it back once you’re up and running, and that’s the best way to sour relationships.

   

  Try to make this time as stress free as possible by being open and up front with people. Exercise, walk the park, swim in the ocean, keep yourself healthy and fit. It’s good for you, your family and your new employer! Good luck.                                                                                                                                                                                                          

Comments

[Product Junkie Diva]

Great tips that I hope I never have to use.
The job market is a scary place these days.

[savvy]

Good tips in general but I somewhat disagree with numbers five and six. Rather than paying a professional resume service, I would suggest having someone in your industry review your resume. They will be more familiar with what is expected and what employers want to see than someone who just does resumes in general.

I would NOT consider a hardship withdrawal from a 401k. In addition to taxes, you will pay a 10% penalty. If you must withdraw from retirement accounts, it would be much better to withdraw from your Roth IRA instead. Same year contributions (not earnings) can be withdrawn tax-free and penalty-free.

[Coco]

I agree with savvy 100% on the resume tip. Reaching out to friends in your field is not only a good way to get industry-specific resume advice, but also an opportunity to let colleagues know your looking and get potential job leads.

[min]

thanks so much for posting this article, natalie! great list of advices! and i really appreciate you reading our comments and response. while it's a daunting task to job search, i'm also finding that it's a good break for me. i've been reading a lot and in many ways, it's helping me stay in tuned with the rest of the current events. so i'd highly recommend reading as another thing to do (like weekly published magazines - Newsweek/Time ets. and great books - currently reading Colin Powell's autobiography.) i hope all this reading keeps me sharp.

[GLM]

Selling jewelry is a BAD idea, unless you are never going to EVER wear it, and it isn't a family heirloom.

You get pennies on the dollan when you sell jewelry or silver, unless you really know what you are doing and take your time selling it off.

[The Frugalista Files]

Wow. The Frugalista Files readers are awesome. You really know your stuff! Thanks for posting my friends in frugality!