In just one week--the week which ended April 18, 2009--640,000 persons filed for initial jobless claims. That is roughly equivalent to the entire population of Baltimore, Maryland ! Earlier this same month, the U.S. government reported that two million jobs were lost through March 2009 which catapulted the nation's unemployment rate to a 25-year high of 8.5%. The numbers of the unemployed just keep rising and so far, the end is not in sight. What is a family to do?
It was my father who taught me how to survive in tough times. He was a child of the era of the Great Depression. He and his fellows of that generation stared both economic turmoil and world war in the face and managed to emerge as the victors of them both. My father taught me two simple rules: 1. Learn to work with both your head and your hands and 2. Outwork the other guy. His reasoning was simple and yet profound. You can't count on anything—not even your own well being. If something happened to your ability to think and reason, you could always depend upon your hands for survival and if something happened to your mobility, you could always survive on your brain power.
His second admonition was equally stirring. It rose from his own indomitable spirit and determination. It was but an extension of himself. Nothing succeeds like hard work. In his own simple way, my father was saying the equivalent of the great American psychologist, William James who declared: “The greatest discovery of my generation is that you can change your circumstances by changing your mind.”
If you haven't yet lost your job you can begin already to build a hedge against it. It is always good to prepare for the unexpected and hope that you won't have to implement your plan. In the present circumstances, it is best to make preparations while you can. Here are some suggestions.
The Rainy Day Fund. If you haven't already set aside a month to a three month supply of cash reserves, start now. When combined with a severance package, this could be your salvation. Don't spend your income tax refund, bank it.
Prepare for the unexpected. Consult with your tax preparation specialist if you believe a layoff is imminent. Severance packages are taxable income, don't be blind-sided by taxes you didn't expect next season. Set something aside once you know the details of any severance package you might be offered. If your severance is large enough to allow you to go back to school or enhance your skills, take advantage of the opportunity. Educational expenses can be tax deductible and will off-set those additional taxes as well as provide you with an opportunity to start a new career.
If you get a bonus or a raise in this economy, don't spend it. When job security is shaky, no one's employment is certain. Bank any additional funds which come your way or if you have debts, use your additional income to pay down any debt, particularly credit card debt, while you are still employed. Freeing up dollars in the event of a sudden downturn in your employment can make your life a whole lot easier.
Update your food supply. Don't run out to buy your family's usual assortment of food stuffs. Store things that will sustain life—just the basics. Store grains, fats, sugar, salt, milk and don't neglect to store some garden seeds. Buy a few hundred pounds of potatoes, peanut butter, tuna fish, or other nutrient rich commodity.
Visit the doctor or dentist. If you anticipate you might lose your health benefits, take care of medical needs immediately. This is a good time for a routine check-up with both your doctor and your dentist. Take advantage of your health coverage while you can.
Examine your health insurance. While you are working on medical needs, check into your medical policy and inquire about COBRA benefits. COBRA insurance, the insurance offered you at severance, is very expensive but often necessary. Your new premium will probably consist of your present premium total, the total of your employer's portion of your coverage, and an additional 2%. Pat Curry at Bankrate.com suggests that now is the time to consider insurance needs before unemployment becomes reality. “Insurance is something people don't think about …if it lapses, it's a huge problem.” This is particularly a problem for families whose members have pre-existing conditions. For that reason, many experts recommend biting the bullet and taking whatever coverage is offered by your former employer through the COBRA plan.
However, you don't have to make your final decision about COBRA coverage on the day you lose your job. You actually have 60 days to decide. With that 60 day window, many people have found that by waiting they ended up only having to pay one COBRA premium before they found new employment. You might also consider individual policies for certain family members or perhaps coverage through a professional or trade association. Before deciding anything, do an exhaustive Internet search and find the best insurance option for your family and their health needs before you make any firm decisions.
Cut your personal expenses. Finish all the food in your pantry and your refrigerator before you go out to purchase anything additional. Make a list of anything of value which can be sold and list it on eBay or other classified service. Sell one of your cars. Limit or cut options on your phone bill, cut out cable television, trim your water bill through more efficient irrigation. Look at each and every monthly bill and cut, cut, cut!
Of course, unemployment might already be a reality in your household. If you are already in this situation, here is what you can do to weather the storm.
Believe in yourself. The first talk you must have once you have been given the pink slip is the talk with yourself. Keep telling yourself that you are as good and as capable as anyone else—maybe even more so. When you think about it, the only control you really have is the control over yourself. Being positive is the number one rule of being happy. Steve Jobs, CEO of Apple Computer was once a casualty of the very company he now runs. He spoke about that miserable day and his attitude about it in a Standford University commencment address on June 12, 2005: “I'm pretty sure none of this (success) would have happened if I hadn't been fired from Apple. It was awful tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don't lose faith. I'm convinced that the only thing that kept me going was that I loved what I did. You've got to find what you love. …Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don't settle.”
Analyze the market. See what is available. Adapt your skills to the jobs available. What skills do you possess which could be translated into a new career opportunity? Do you need any additional training? How much will you have to invest to obtain it? Creativity and ingenuity when combined with whatever work is currently available can not only pay the bills, it can be the ticket to grand opportunities for your future.
Look for educational opportunities. Take advantage of government-sponsored grants and incentives for furthering your education. Are there seminars, college courses, or job fairs to help you sharpen your skills? Is this the time to get that college degree you always dreamed about? Education nearly always translates into increased earning potential and can be supplemented with part time work when full time is not in plentiful supply.
Apply for benefits . Check your local or state department of work force services for sponsored programs and for unemployment benefits to get you through what is probably only a temporary circumstance. There are electrical, heating, and food assistance programs available from both private and public entitites. Pay particular attention to those programs which offer more of a hand-up than a hand-out because a hand-up will more likely lead to new employment.
Network. Sixty-five percent of all jobs are found by this method. Don't be afraid to inform your friends and family of your unemployment. Your network contact can be your neighbor, your best friend, your barber, mailman, or someone you might meet in the grocery store. Don't neglect others who might be out of work. You never know when someone you assist to a job will be able to return the favor. Rarely will the person you contact just happen to know the perfect employment match for you but it may well be a friend of a friend of a friend who bumps into that one person who can give you your next job opportunity.
Shop your resume. Leave your resume with every company in every related field of your job skills regardless of whether or not that company is currently hiring. Name recognition is critical. Keep your name in a lot of places. Become friends with those that can help you inside a company you want to work for. As I once heard President James E. Faust say: “It is better to have a friend in court, than 10,000 in the courtyard.”
Check want ads, agencies and nternet job postings. If LDS Employment Services is available in your area, make a stop there to acquaint yourself with their professional and very competent services.
Don't stop there. Make a list of places you want to work and begin with “cold-calls” to their human resources department. Ask for an informational meeting or a personal conversation with someone in their department who can give you advice on the best way to obtain employment with their company.
Sharpen your interview skills. You generally have one chance to sell yourself to a potential employer and you have to make a tremendous first impression. Many, if not most employment agencies, offer classes in interviewing skills. Take advantage of them. In addition, are you prepared to give a 30-second summary of yourself and your business qualifications? This is often called an Elevator Business Plan because it is often that chance encounter with a top-executive in an elevator that lands you the job you have always dreamed about . If you haven't already, sit down and carefully compose a 30-second summary of your qualities as a potential employee and memorize it.
Stay productive. Apply with a temporary employment agency or do some volunteer work. Staying productive and in the public eye keeps you in an active network for finding new employment to say nothing about the benefit of showcasing your job skills. Don't become a hermit. Go out and be seen. You are still of great worth. You will weather this storm and you, like our fathers before us, will emerge the victor.
