How to Deal With an Unexpected Job Loss. The Shock That Comes With Unexpected Job Loss
It took me more than five minutes to comprehend what my boss just told me. Anything after the statement “sorry the company isn’t doing well…” wasn’t sinking in. I could believe I have been laid off all my working life; I have never been fired or laid off. The reality had dawn I was jobless with three kids and no husband. Since I didn’t get much from the conversation, I left the office with a sealed envelope. I bet it was my salary and service money. I walked to a nearby park and sat to console myself.
What would I tell my kids? How will I provide for their needs and pay for my fresh mortgage loan? The world had turn upside down, and I must have messes somewhere. I never thought the Covid-19 pandemic would stripe so much of my livelihood. I cried, and thoughts of failure dominated my mind. However, I had to be strong for my children and myself too. I didn’t check the envelope and left for home.
My kids usual welcomed me home, give me their day’s ordeals, and we made dinner. I didn’t feel like burdening their little minds. It was enough not going to school due to the pandemic and also our divorce. I remember I slept well I had cried a lot, and I needed sleep. So I slept but woke up very early, I opened the envelope, and my salary and service money was there. The salary could have pushed us for a month or so but what next.
How to Deal With an Unexpected Job Loss
I had saved an emergency fund in my bank, though I never thought this would be a rainy day. I left the bed, made breakfast and left the house as usual. We proceeded to the bank and banked the money. I directed the entire service money to the mortgage loan. I also presented my case to the bank manager request for time and slashed in my loan instalments. The banks then were lenient since Covid-19 was harsh on the economy, and many people couldn’t afford to pay their loans.
My emergency fund was in a fixed account, meaning I couldn’t access it unless a dire situation arises. The bank shifted a portion of the amount, which I felt will sustain us until I landed a new job. Next, I went to the groceries shop and mall and shopped for food enough for two to three weeks. Now I was ready to sit with my kids and tell them about my job loss. We went back to the house, and they were surprised since it was early. I made lunch and assembled them at the table. How you present the matter will either break or build your children. I gathered my strength and told them, “mum will be home for a while, since she is not working.” I explained I was laid off due to the pandemic and I must get a new job.
Okay, my kids felt my boss wasn’t fair; why choose me? However, we talked, and we agreed on new life changes. My children were supportive. They didn’t demand unnecessary provisions, and we lived off what we could afford. In my free time started writing blogs and vlogging, and guess what? My channel and post started gaining traction and creating income. I was comfortable and could manage my own time without much pressure. This felt different; I could spend time with my children and follow their routines. This, I bet, was my new normal; I ventured into various niches, and with no time, I had thousands of followers.
I could make enough to pay bills and save. With this, I decided am investing my time and money in the business. I knew I had to take serious financial action and build a robust fallback platform for my children and me. Again I visited my bank and requested to lock/fix my emergency fund account. I saved a higher amount than when I was employed. I also request for 30% per cent of my income to go mortgage loan. This was to help me relieve the loan fast and before the agreed period. My children are already used to the new normal way of life and don’t bother living an average standard. I have managed to peel off the loan weight and build the savings account and emergency fund account for harsh days.
Though Covid-19 is still rampant, I can advise on financial spending during a job loss. I know you can relate to the stress and responsibilities awaiting you on the other end. However, you can take simply the following strategies:
Once the job reality hits, it’s good to adjust your budget. Involve your family members and decide on the new normal. First, categorize the expenses and identify what is necessary. Let the children learn what priority is and why they need to adjust.
After I was sober from my crying and worries, I headed to the bank and requested an emergency fund. In my case, I request part of the funds, which I knew will push us through until I land a new job. I didn’t think of self-employment, but I was sure the money would sustain us for some time. Financial advisors always teach on saving 6-12 months savings in emergency fund account. The amount will help you before you think of something new. I always lock my amount so I cannot spend it in an emergency. The bank has an automated mechanism that takes a portion of my income to the fixed emergency account.
Don’t Borrow During a Job Loss
A debt during job loss is creating a mess inside a mess. Try working with the little amount you have, especially the emergency funds. Intensify your job search or think of self-employment. I hadn’t planned for my blogging and vlogging but the opportunity from simple passion. We worked with the funds I had saved, and thank my bank they didn’t push on the mortgage.