With the economy shutting down because of the coronavirus, unfortunately, millions of Americans lost their jobs. Thankfully, the economy is getting up and running again. However, many people are still left without a job. Recovering from a job loss can feel like an anxiety-inducing and stressful process, which is why many people put it off. However, there are many things you can do to successfully recover from a job loss.
How to Help Yourself Recover From Losing a Job
What you do after losing your job depends on your financial situation and personal experience. Some people have minimal financial responsibilities, so finding a new job is not a top priority. However, for most, a loss of income can completely change the way you live. In this case, it is vital that you do your best to recover from your job loss as quickly as possible. Although it can be challenging to stay motivated, pushing through is generally effective. With that being said, read our tips below on how to help recover from a job loss successfully.
Review Your Spending Habits
When your income has ceased, it is vital that you review your money spending habits. A common mistake people make when their income is limited is they continue spending as if they were still employed. While this may not seem like a big deal at first, the expenses and lack of income are likely to catch up to you. This is why you should review your spending habits and see where you can make changes.
For most people, the place to cut spending is on activities and groceries. Although it may feel unexciting to not go out to do your weekly activities or meals, your bank account will thank you. Whenever possible, try to stay at home when looking to do an activity to cut down on spending. Watch a movie at home with your spouse or play outside with your kids. Do what you can to avoid spending money on activities as much as possible. When it comes to groceries, consider purchasing off-brand items and buying in bulk. This can be a helpful way to cut down your spending each week.
Avoid Relying on Your Emergency Fund
If you have read our articles before, you will know that we recommend building an emergency fund. An emergency fund is a sum of cash that is spent in case of an emergency such as a medical emergency, or not being able to pay your bills. In the instance of a job loss, it can feel comforting to have an emergency fund set aside. However, it is important you avoid using it unless you are in a financial emergency. If you can still afford your bills for the few months you will be without a job, then continue using your checking account for your expenses. Your emergency fund account should always be a last resort for making necessary payments. This way, if a true financial emergency arises, you will have more of your emergency fund to rely on.
Prepare and Update Your Resume
Another important thing to do to successfully recover from a job loss is to prepare your resume. If you were at your old job for an extended period of time, you likely have some updating to do. Spend the extra time you have on hand updating your resume and your skills section. Also, consider redesigning your resume and make it look more modern. There are many free templates available online that you can use if you aren’t familiar with the best graphic design practices.
A tip for updating your resume is to include your skills learned from your previous job. Even if it was not a part of your official job role, any skills learned should be listed. Also, focus on your achievements concerning numbers. For example, if you made $500,000 in sales in one year, list that under your achievements. People are naturally drawn to numbers, and this will likely catch a recruiter’s attention.
Reach Out to Your Business Network
Once you have updated your resume, you are ready to reach out to your business network. An easy way to do this is to message people in your LinkedIn Network. Or, you can make a post announcing that you are searching for a new job. If you don’t have a LinkedIn, consider the people you have worked with and have worked for in the past. Whoever will give a job recruiter a great endorsement for your skills and work ethic, reach out to them.
Another important thing to focus on when reaching out to others is to consider their industry. During a recession or global events, certain industries could struggle more than others. For example, the oil and gas industry can suffer when there are issues with foreign policy. With that being said, keep an eye on which industries are booming and try to connect with people in those booming industries. This can help ensure your efforts are as effective as possible.
Replace Your Job Hours with Job Hunting
Last but certainly not least, we recommend replacing your job hours with job hunting. However long you worked each day, replace those hours with searching for open positions that you are qualified for and networking. There are hundreds of job recruiting sites, as well as many job recruiting firms. Do your research and reach out to the positions you are qualified for and that interest you. Turn job-hunting into your new full-time job so you can increase your chances of coming across an excellent position. Although this can feel exhausting, it will be worth it when you get hired.
Recovering From Unemployment
We hope the tips mentioned above are helpful for you when trying to recover from a job loss. When you work diligently to find a new job and network with those in booming industries, your finances will likely regain stability. If you ever need financial advice on your specific situation, feel free to contact one of our financial professionals. We would love to assist you in this process.