The numbers are scary. From December 2007 through October 2009, unemployment in the U.S. doubled from 7.6 million to 15.1 million. But the statistic that matters most is your own, and if you’ve been laid off or your company has gone under, you’re competing with an army of others for the few available jobs. Still, manage your financial affairs carefully and you’ll certainly survive the economic crisis. You might even emerge in better shape than you were before. These eight suggestions could help.
1. Don’t panic. It’s normal to be nervous if you’ve suddenly been sent packing after years of gainful employment. But now’s the time to take stock of your situation as calmly as possible. Keeping your emotions under control will make it easier to find the way forward.  2. Reduce spending. Food and shelter are necessities, but other purchases are discretionary. Consider ways to trim your cable TV bill and think twice about dining out. Finding things you can do without may also help you overcome the feeling of powerlessness that often comes with unemployment.
3. Eliminate unnecessary debt. Cut up your credit cards? Maybe not, but charge only what you can afford to repay each month. Otherwise, a small debt could quickly spiral out of control. 4. Take advantage of benefits. These days, you can likely avoid those dispiriting visits to the unemployment office and apply for jobless benefits by mail or online. And if you need to continue your health insurance coverage under COBRA, a provision of the American Recovery and Reinvestment Act of 2009 will subsidize 65% of the cost for nine months. 5. Network, network, network. Applying for posted jobs pits you against a host of other applicants. You may do better reaching out to friends, family, and business associates. Be casual—you don’t want to seem desperate—but be sure they know you’re job hunting. 6. Consider a career change. If your industry or profession seems unlikely to rebound, you might broaden your search to include related fields—from print media, say, to work on a website, in public relations, or in another job requiring writing and editing. 7. Start a new business. If you’ve always dreamed of turning a hobby or other passion into a profitable business, this might give you the push you need to go for it. If you can fill a niche with high-quality services or products while keeping startup costs low, you’ll stand a good chance of success. 8. Stay positive. An extended job search may sap the energy you had when you were first laid off. But perseverance will pay off. And remember: If you’re middle-aged or near retirement, your wealth of experience is an asset, not a liability. Finally, in a pinch, you may need to tap your retirement plans. But money you pull out now will be difficult to recoup later on, so consider this option only for emergency purposes. |