One of the most devastating challenges that no one wants to face in their lives is job loss. It takes an emotional toll that can strip you of your dignity, pride, and life-purpose. It is never easy to endure the pain of sudden unemployment, and surviving job loss is even more distressing. Yet, as you begin your job loss recovery program, you will need to address the financial burden that comes with it. The five steps presented here will help you as you begin your financial as well as your emotional restoration.
Contact Your Creditors
Your first step towards personal financial recovery is to get in touch with every creditor that you are currently doing business with. The key is to be as proactive as possible. If you reach out to your creditors and inform them upfront of your personal financial dire straits, they will more than likely be willing to work out a manageable payment plan that fits your particular circumstance. In some cases, they may even agree to loosen your payment obligations until you can get back on your feet. Then, once you can demonstrate that you can resume your schedule, they will place those missed payments on the backend of your loan without penalty or damage to your credit rating. Never ignore your creditors. Never abruptly close active accounts for this will not only do significant damage to your credit, but can also compromise your relationship with your creditor.
Seek Government Assistance
You should definitely reach out for help from the government. This your most crucial step in surviving job loss. Avoid any ego or pride issues that you may have about government assistance. Don’t see it as merely a government hand-out to the needy or as embarrassing welfare assistance to the impoverished. These are harsh misconceptions that have for many years been perpetrated by both the media and by public opinion. Instead, think of it as a hand-up. You’ve worked for it, and you are legally and morally entitled to it. Therefore, make sure to take advantage of it to the fullest.
Budget Like a Company Executive
Now that you are unemployed, you will need to begin the process of organizing a much tighter household budget. First and foremost, cease all unnecessary spending. Postpone your spending on junk food, outdoor family entertainment, and especially family vacations. When grocery shopping, buy cheap, but quality food items. If you must drive, try to limit your travel times, and do all of your errands in one sitting. Help your children understand that you all will be facing difficult times ahead, and that they will not have the same spending privileges that they enjoyed prior to your job loss. Limit shower times, and turn off home lights when they are not in use. Temporarily cancel luxuries such as cable or direct TV services. Be as diligent as humanly possible when it comes to your budget planning.
Develop an Earnings Revitalization Plan
At some point, you will need to start finding ways to replace the lost income. Check newspaper job advertisements for possible openings. Seek available part-time work. Offer assistance in your community for a flat fee such as lawn care services for the elderly, or baby-sitting for working married couples. Have a garage sale. Join organizations that will hire you as an independent contractor in such industries as mystery shopping, merchandising, or signing agent services for mortgage companies. Use whatever skills you personally possess whether it’s as a beauty consultant, computer repair person, or web designer.
Form an Online Company Called You, Inc.
In other words, get started in building your own part-time business. You don’t have to go to extremes and rent office space. However, find a need that you know exists for a large number of people, and make plans to address filling those needs through your service. Set up a business entity such as Inc. or LLC. Get online and learn how to create a free blog. Learn as much as possible about CPC (Cost-Per Click) advertising revenues through Google, where you are paid for click-throughs on ads that you’ve placed on your free blog. Think like a business owner, and get serious about earning income to meet your family expenses.