At the previous company that I worked at, two mass layoffs occurred within just months of each other. The first one left me a bit shaken, and the second one deeply saddened me because of how many colleagues I knew that were impacted. After the Great Recession years ago, I was laid off a few times while I was a student. Losing your job can be financially, emotionally, and mentally challenging.
If you relied on your employment for a steady income, benefits, and 401(k) matching, losing your job can feel like a setback towards your FIRE goals. If this ever happens, try to remember the following:
Losing your job can feel personal, but it has nothing to do with your worth.
Let yourself grieve if you need to.
Recognize that your FIRE deadline might have to be postponed, and make peace with it.
You can get through this.
If you ever find yourself (or anyone who know or love) in this position, here are a list of things you can do for coping with a job loss, managing finances during unemployment, and staying on your FIRE path:
Stay. Calm. Easier said than done, but it's important to keep a level head during this process. Take some deep breaths, make a cup of tea, go for a walk, call a loved one. Do whatever you need to do to clear your head and to plan out your next steps.
File for unemployment insurance. Check your eligibility, gather any necessary documents, and file your claim ASAP. Each state has its own process. If you need guidance, check out the Department of Labor's page with links to state resources.
Evaluate your financial state. Get a clear view on your financial situation and know what your current expenses (and potential income sources like severance pay) are. If you haven't already done so, create a budget with a focus on cutting back on nonessential expenses.
Negotiate your severance package. Some folks qualify for severance, and it's important to make sure that you understand what the terms are. Read anything in writing thoroughly before signing. You might be able to re-negotiate the terms. For example, I knew of someone that was receiving medical treatments who was laid off, and they were able to re-negotiate their terms so that their health benefits could be extended. This allowed them more time to focus on both their health and their job search. Speaking of health...
Research your health insurance options. Before diving into the job search process, I urge folks to make sure that their health is taken care of first and foremost. Look into COBRA or state programs. If you're in the middle of treatments, coordinate with your medical team and collaborate on your options. (Even an option like requesting a 3-month supply of your medications before your insurance runs out can be huge.)
Update your resume and LinkedIn profile. I greatly appreciate how LinkedIn has made it so easy for me to keep a running history of my roles and previous responsibilities. Not only that, you can generate a resume from LinkedIn! Revise your resume as necessary to ensure that you're highlighting skills, strengths, and experience related to the jobs that you are seeking out. Depending on the field that you are in, you might also need to brush up your portfolio or start building one.
Network consistently. Next to using a job search platform, networking tends to be the #1 method people secure their jobs. Again, LinkedIn can be a huge help here. Reach out to your network by creating a general post online that you're looking, sending some emails, and making phone calls. Tap into both your professional and personal network to cast a wider net.
Access job search platforms. Google will be your friend here, but try LinkedIn, Indeed, Monster, USAJobs, Glassdoor... there are seriously too many to list. Try to remain active on these platforms on a daily basis so that you can stay informed about new job openings.
Create a spreadsheet to track roles, application statuses, and notes. I've found this to be helpful for me in the past to help me stay organized and on track. Sometimes the same roles will be listed on multiple platforms. If I saw that I might have already applied to it, I could reference my spreadsheet to confirm.
Attend networking events and job fairs. This advice depends on the roles you're seeking out. But if you're needing something local or in-person, wanting to put your name out there, or just needing to learn more about what's available, expanding your connections will likely help. Put on your best work outfit and go!
Strengthen your skills. Take a free or low-cost course, workshop, certification program, or seminar to sharpen your skillset. This will keep you from stagnating, may increase your marketability, and may provide more networking opportunities.
Freelance or take on a side gig. This can provide a small income boost, minimize potential gaps on your resume, expand your experience, and allow for further networking. Depending on your expertise and years of experience, you could also offer your services as a consultant. I've offered occasional consulting through GLG, and it's a nice way to get paid for what you already know.
Volunteer or shadow. Personally, this one was helpful for me several times throughout my twenties, especially when I was a student that needed to build experience. Volunteering and seeking out shadowing opportunities helped me to build my skills and network. Beyond that, it can provide a confidence boost knowing that you can do some good while unemployed.
Try to stay positive. It's easy to feel discouraged or to personalize a job loss, even when it's due to circumstances outside of one's control. Keeping a positive mindset and attitude can help you to keep going, and potential employers can definitely pick up on the energy that you put out.
Talk to a career counselor. Unless you're a student who has access to career counseling resources through your school, this might be an added expense. In my experience, paying for a career counselor was worth every penny. My career counselor helped me to clean up my resume, hone in on my values and skills, and even helped me through a full career change. Sometimes it's worth investing in an expert; the payoff can be worth it!
Prepare for your interviews. Research the company and role you're applying for. Practice answering interview questions with someone you trust who can give you solid feedback. Record yourself if you need to check your tone, posture, and facial expressions. And prior to the interview: brush your teeth, wear clean and professional clothing, and arrive 15 minutes early.
Follow-up on any interviews. Make sure to send a thank-you note or appreciation email to the person that interviewed you. Reaffirm your interest in the role (if it's a job that you want) and keep the door open for further networking.
Access emotional support. Talk to friends and loved ones. Connect with a therapist or counselor. Have people in your corner that can keep you grounded, be your cheerleaders, and give you the occasional pep talk when needed.
Do what it takes to remain persistent. If establishing a morning routine with good coffee, a sweaty workout, and a refreshing shower gives you an energy boost, do these things before diving into the day's job search. Rejections and other setbacks can deplete one's energy, and it'll be important to find the things that combat job search burnout. Remain proactive. Keep going. You've got this.
When you do get that job, practice gratitude. As stressful and discouraging as my own layoffs were, looking back, they definitely helped to keep my ego and sense of entitlement in check. Nobody owes me anything, no matter how hard I work or how smart I think I am. I've grown to appreciate what I have and my experiences, and I try to remind myself that it can easily be taken away. Cherish today; tomorrow is not promised to us.
Any advice you would offer to someone who is unemployed?
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