Losing your job not your hope

Here is some good advice I came across today in an article written by Eleanor Blayney, a Certified Financial Planner.


CFP Board Consumer Advocate Eleanor Blayney, CFP(R) Offers Consumers Ways to Stay Afloat During Job Loss
WASHINGTON, Feb. 12 /PRNewswire-USNewswire/ -- The U.S. unemployment rate is at its worst level in decades, and likely to get worse before it gets better. The scale of the January layoffs has shown us that nobody is immune from sudden job loss. And with the unemployment rate now at 7.6 percent, a new job may not be easy to find.

"Everyone needs to be prepared," advises Eleanor Blayney, Consumer Advocate for the Certified Financial Planner Board of Standards (CFP Board). "Assess your situation, and take inventory of your assets and debt before the need arises. If you lose your job, the situation will be much easier to handle if your finances are in order."

If you are one of the unfortunate recently unemployed, don't panic. Look clearly and realistically to outside sources of help, as well as to your own resources.

Talk to your ex-, or soon to be ex-employer about the company's severance policy, and make sure you understand exactly what benefits and assistance are available to you. Are you eligible for unpaid sick leave, continued health care coverage through COBRA, or programs for displaced workers or job searchers?

Next, consider following the following steps: -- Establish a budget; this will help you set guidelines and curb impulse spending. -- Apply for unemployment insurance as soon as possible. Waiting could reduce your benefits. -- Contact your creditors and request an arrangement that allows you to make reduced payments for a limited time. -- Organize your job search, and make it your full-time occupation to find your next job. -- Have a look at your expenses; which are nondiscretionary, and which are purely discretionary? -- Finally, seek professional advice, particularly if you are thinking of making any big changes - moving, selling assets, and dropping insurance coverage.

"Suddenly finding yourself unemployed can be a traumatic and disorienting experience," Ms. Blayney concludes. "But it doesn't have to be a disaster. With discipline, a focused search for a new job, and wise allocation of resources, it is possible to weather this period and begin the next phase of your life."