How to Cope with Being Laid Off

Smart Money lists some ideas on how to cope with being laid off. Their suggestions:

Negotiate severance. The good news: Employees with a stellar track record can negotiate a better deal. Also, make sure to have any unused vacation days tacked onto your final paycheck.

File for unemployment benefits right away. Even if you're receiving severance, you're still entitled to unemployment benefits. Be sure to file for benefits right away because it usually takes a few weeks for the first check to arrive.

Seek affordable health coverage. If you can't sign onto a spouse's employer-sponsored health plan, consider either extending your previous coverage through COBRA or buying an individual policy.

Don't panic. Resist the temptation to tap your 401(k) or charge everything on your credit card.

Seek job-hunting help. State and local governments offer free job training and search assistance at so-called one-stop career centers.

Decent suggestions, but here's my one bit of advice on how to cope with being laid off: start preparing now.

Yep, if you start preparing for being laid off when you still have a job, you'll be much more ready and able to survive a lay off. So what should you do now to prepare? Take these steps:

1. Start an emergency fund and save at least six months worth of living expenses. If you're laid off, you'll then have this money plus severance plus unemployment -- which should give you plenty of time to find a new job.

2. Develop efforts that make money for you on the side. This way, if you lose your job, you'll have at least something flowing in. Combined with the funds in #1, this should give you a great cushion.

3. Network. The most-likely way to find and get a job is through your network. Develop it now and you'll have a great resource for helping you find a new position.

Comments

[Chris]

"File for unemployment benefits right away."

Can anyone explain to me why people do not do this? I know a few people who when laid off did not file for unemployment, for what I think was the sake of their pride. Unemployment happens, that is why there are unemployment benefits! If you do as FMF says and prepare yourself and get support from the government, you should be able to weather the storm fine.

[Lisa @ Cents To Save]

My spouse was laid off 6 weeks ago....We immediately filed for unemployment. Luckily we are okay on my recently reduced (7 percent reduction company wide) income and the unemployment. I have a good amount in savings. We have cut out eating out and excessive or unnecessary home projects.

[Isabel]

I've heard that you should "negotiate" your severance; but I would love to hear some more details on how that is done. I work for a Fortune 50 company (where layoffs have been all too common this past year), and everything HR does -- hiring, firing, and everything in between -- is done according to a formula. The most recent severance packages were 2 months plus 1 week for every year of seniority. I've never heard of anyone negotiating for more (but maybe they are and just aren't talking about it). Anyway, could you post more detail on this?? Thanks!!

[FMF]

Isabel --

Did you try Googling the issue?