Ask an Advisor: I’m going to lose my job at a large technology company in a round of layoffs next month. What should I do today to prepare financially?

Ask an Advisor: I’m going to lose my job at a large technology company in a round of layoffs next month. What should I do today to prepare financially? – Anonymous

Getting let go from your job can be a difficult and stressful experience, but there are things you can do to prepare for this possibility and minimize the impact it has on your life. Here are some practical steps you can take as a technology employee preparing for a corporate layoff:

Keep your resume up to date

Even if you’re not currently looking for a new job, it’s a good idea to keep your resume up to date. This way, if you do lose your job, you’ll be ready to start applying for new jobs right away. Make sure your resume is free of errors and reflects your most recent work experience and skills.

Build your network

Networking is crucial in today’s job market. Make an effort to attend industry events, join professional associations, and connect with colleagues on LinkedIn. Build relationships with people in your field who can vouch for your skills and experience, and who may be able to help you find a new job if you’re caught up in a layoff. You may not be the first person to find a job (maybe a colleague of yours will be). It’d be really nice if they could connect you with the same hiring manager who offered them a job and help you out, as well.

Save money

It’s always a good idea to have an emergency fund, but it’s especially important if you’re worried about an imminent layoff. Try to save as much money as you can, so that you’ll have a cushion to fall back on if you lose your job. Aim to save at least six months’ worth of living expenses, if possible. Even though your resume may be stellar, it could take you longer than you expect to find your next job.

Consider 1099 contract work

We all know about Fiverr and Upwork but many of us haven’t explored how it’d work to start building a small 1099 contracting business while we’re waiting for a new job. While many people say that they think it may be “beneath” them, it could be a game-changer for you in helping what savings you do have, stretch a little farther, even if the jobs don’t pay extraordinarily well.

Contact MULTIPLE recruiting firms which specialize in helping your profession, explicitly.

You may or may not know this, however, recruiters typically earn a pretty high commission for getting you a job. It’s not uncommon for it to be 3 months of your salary, upfront. By contacting multiple, you’ll have your resume at every single job and improve your likelihood of getting interviews at companies you may not even know are hiring because the opportunities may not be posted very many places. Lastly, because their commission is heavily dependent on the quality of your job offer, they oftentimes will help you negotiate as well.

Evaluate your expenses

Take a close look at your budget and see where you can cut back on expenses. Eliminate any unnecessary subscriptions or services, such as streaming services or gym memberships. Look for ways to reduce your monthly bills, such as by renegotiating your cable or phone bills. It’s important to know how to tighten the belt when need be. Any vacations, major purchases, or investments you were intending to make; you should probably push off until you’ve found a new job and have been employed there for at least 6 months (as new employees are the first to get axed during layoffs).

Consider your options for health insurance

Losing your job may also mean losing your health insurance. Research your options for COBRA coverage or other health insurance plans that you can purchase on your own. Make sure you understand the costs and benefits of each option, so you can make an informed decision.

Take advantage of the resources available to you

If you work for a larger company, they may offer resources to help you transition to a new job, such as job search assistance or resume writing services. Take advantage of any resources that are available to you, as they can help you get back on your feet more quickly.

Prepare emotionally

Losing your job in a corporate layoff can be a difficult and emotional experience. Prepare yourself emotionally by acknowledging your feelings and talking to someone you trust about your worries and concerns. Remember that getting let go is not a reflection of your worth as a person or your skills as an employee.

Create a plan for what you’ll do next

If you do lose your job in a layoff, it’s important to have a plan for what you’ll do next. Will you start looking for a new job right away, or take some time to focus on other things? Make a plan that takes into account your financial situation, your skills and experience, and your personal goals

No emergency savings? It’s time to get creative.

Sometimes, people lose their job during a layoff and they’re wholly unprepared. In these scenarios, you probably feel like you’re at risk of becoming homeless. I promise, not all is lost. If you have an apartment or a house (as terrible as this may sound), it may be worth considering renting out a room. I know, that may not be something your family may be interested in, however, if it’s the most conservative option to help ensure you don’t have to go hungry or risk homelessness, it’s worth it. Clean your house and find a long-term tenant by listing the room on Facebook marketplace, apartments.com, hotpads, etc. This extra $1000 per month could make a huge difference for you.

In addition, sometimes it makes sense to consider getting a personal loan to pay your expenses in the short term because, while it’s risky, it could also be the one decision that can keep your lights on, food in your fridge, and a roof over your head until you find new employment.

In conclusion, losing your job during a layoff can be a stressful and difficult experience, but by taking steps to prepare for it, you can minimize the impact it has on your life. Keep your resume up to date, build your network, save money, evaluate your expenses, consider your options for health insurance, take advantage of resources available to you, prepare emotionally, and create a plan for what you’ll do next. With these steps, you’ll be better equipped to handle a layoff and move on to the next chapter of your career.

Blaine Thiederman is a financial advisor based in Arvada, Colorado, who serves clients nationwide.

This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.

Find a Financial Advisor

Do you have questions about your financial future? Find a financial advisor who can help you enjoy life with less money stress by visiting Wealthtender’s free advisor directory.

Whether you’re looking for a specialist advisor who can meet with you online, or you prefer to find a nearby financial planner, you deserve to work with a professional who understands your unique circumstances.

Have a question to ask a financial advisor? Submit your question and it may be answered by a Wealthtender community financial advisor in an upcoming article.

—

Do you already work with a financial advisor? You could earn a $50 Amazon Gift Card in less than 5 minutes. Learn more and view terms.

This article originally appeared on Wealthtender. To make Wealthtender free for our readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a natural conflict of interest when we favor their promotion over others. Wealthtender is not a client of these financial services providers.