Ask Ms. Deborah – Managing a Possible Layoff

Dear Ms. Deborah,

 It is likely that I will get laid off in the next two months. What can I do to prepare?

 Sincerely,

Hopefully Not

 Dear Hopefully Not,

I am so sorry to hear that you feel this event is coming upon you quickly. However, there are many ways to prepare for this event. It’s time to do a little low under the radar ground work to ensure that you are prepared for this day by doing the following:

1. Know your benefits. This would be a great time to review all of your vacation and sick days along with any other benefits to ensure you and your employer are on the same page upon your departure. Also, when you are prepare, it makes negotiating your severance package much easier. Lastly, if you have a 401k with the company, please make sure you know how to login to their portal to review your assets in preparation to transfer those investments when that time comes.
2. Start saving even more now. You should have a savings account with at least 8 to 10 months of your monthly salary.
3. Re-examine your lifestyle and budget. This would be a great time to really look at your spending, sticking to a budget and see if there is any expenses that you need to cut at this time.
4. Get rid of debt. If you can pay down some or eliminate debt, this would be a great time to do it while you have your current income.
5. Severance package. If you are presented with a severance package/agreement, please don’t sign it right away. Please make time for yourself to review it and completely understand it. If you are unsure or have any questions regarding this agreement, please have an attorney review it for you and provide any feedback.
6. Maximizing your unemployment benefits. When you are laid off and receive your severance package, please try to maximize your unemployment benefits and sticking with your revised budget. The severance package is your additional cushion and should not be used unless absolutely necessary.

Overall, if you are prepared financially, this will relieve any stress and will allow you to be able to focus on finding that perfect job for you.