5 things to do if you’ve lost your jobSubmitted by Agrawal Associates on July 5th, 2017
July 6, 2017
Losing your job is a life event. There are desirable life events — getting married, pursing education, buying a home or car — and then there are many less than desirable challenges we are often faced with. Death, losing money, or a job, to name a few.
A significant economic downturn in Alberta has resulted in thousands of people being laid off. This results in those people having to learn to deal with the uncertainty that comes with the sudden change of employment status.
Life events don’t just impact your finances, but also your overall mental wellbeing. Finding a way to acknowledge and accept the overall situation will allow you to take action on next steps.
As you work through the acceptance period, take some time to review our top five areas to consider if you’ve lost your job.
- Speak with your financial advisor. Advisors are here to provide you with guidance and support as you deal with a changing financial situation. They will help you identify areas where you can make changes or adjustments while you’re at an employment crossroads. Advisors will also guide you through adjustments to your tax planning.
- Tie up loose ends. Do you have a severance or pension package from your former employer? Company savings plans or shares are also possibilities that you need to review and make decisions about. Ask questions and know your options for each element so you can work with your advisor and make a decision that works best for you.
- Medical and dental protection. When you are employed, you often have coverage for dental, health, disability, and/or life insurance. These group benefits stop either immediately or shortly after your employment ends with a company. Take steps immediately to find a replacement option, even if you are confident you’ll find another position soon. Protect yourself and your family.
- Establish temporary cashflow. If you have worked hard to establish an Emergency and Planning Account — something we highly recommend — set up a monthly withdrawal from that account into your daily bank account. The same applies if you’ve received a severance package. Put it in a separate location and establish an automatic transfer or payment into your bank account. Contemplating early retirement? Read our blog on Cashflow for life.
- Test-drive retirement. Maybe you’re not quite ready to retire and the thought of being fully retired makes you anxious. How do I fill a full day without being at the office? Give it a test drive! Take an extended vacation, volunteer, learn a new skill, spend more time with your family, make new friends, write a book, get fit…the list goes on!
While losing your job can appear at first glance to be an undesirable life event, it may be the perfect opportunity to discover a new passion or a new career.
Above all, it’s important to remember that it’s not personal. The economy is at play.
People often see being laid off as a reflection of them not being good enough. Defend yourself. The economy isn’t strong but you are good enough.
-Girish Agrawal, Agrawal Associates Private Wealth Management