Lose Job? What Happens Next?

Lose Job? What happens next? Well it depends on your plan. If you don't have an action plan yet then this web page has some good ideas to get you started. If you already have a plan you might want to include some of these ideas in your plan.

Here are five steps to take before you lose your job that will reduce your anxiety now and give you more options in the future.

Lose Job Step 1 - Develop an action plan

You can choose to be passive and let events rock your world or you can take action and shape your own future. An action plan will give you confidence and eliminate some of the fear that tends to immobilize every one of us. Getting your action plan together is the first step in taking control of your life. Each person's plan will be different since their situation is different but here are some basic things to consider for your action plan:

Open a home equity line of credit. It's difficult or impossible to get any credit after you lose your job, but getting a credit line now could be a life saver during the hard times.

Investigate COBRA coverage - COBRA is the program that extends your medical insurance coverage when you lose your job, but you have to pick up the total cost of the premiums. First, find out how much your insurance coverage will cost if you lose your job, and second, find out if the company will carry you for an additional period of time before you have to pick up the full cost.

Check out credit card insurance. Some credit card companies offer insurance that will make the monthly payments for you if you lose your job. Beware of scams in this area and read the fine print to make sure you know which conditions are covered.

Do not pay off your credit cards now even if you get a severance check. Although it might feel good to have the credit cards paid off, credit card debt is unsecured debt which means the credit card companies can't come and take away your house or car. Instead make the minimum payments and put the rest of the money in your emergency savings fund since you don't know how long it might take to get a new job.

Check with your employer to see how your 401K and pension plans are handled if you lose your job. Can the amounts be rolled over into a different plan?

Build an emergency fund to cover your time out of work. The ideal situation is to have 6 months of living expenses in the emergency fund, but anything is better than nothing, and it's never too late to start a fund even if you don't have one now. If you have two incomes, bank one and live off the other.

Click here to see a good course in Personal Finance that can help you become financially secure.

Lose Job Step 2 - Find an alternate source of income

I call this my backup plan or Plan B. It's great if you can develop a second income. Each person's backup plan will be different based on their skills and interests. You might get a second job or a part time job or maybe you want to start a business. No matter what you do, it's a good idea to begin the process now while you still have a job since some of these might take a while to get started.

There are people who have had a huge success with Internet Marketing, so much so that their plan B income has replaced their day job. The Internet is a huge opportunity for making money but you need a good teacher. Here is the best site I have found that shows how to make money on the Internet.

Lose Job Step 3 - Your Investments

I hope your investments are doing well during this difficult time. Everyone needs an investment strategy that they can live with. If you need help with your investments, here is my recommendation for a good course in Investing.

Some people have doubled and tripled their investments trading on the currency exchange using new software programs called robots. A robot program can watch the market for you 24 hours a day and make trades when the timing is right. Currency trading only appeals to a small group of people, but if you are interested here is a link to one of the best robot trading programs.

Lose Job Step 4 - Pay Attentions to the Things That Matter The Most

Recently I saw a segment on Oprah about people who lose their job, lost their home, and were living in a tent city near Sacramento. The show was hard to watch because all of us could picture ourselves in that situation and we sympathize with them. One of the interview questions was "Would you have changed anything if you knew that you would lose your job?" and almost everyone said that they would have changed their spending habits.

So, I ask the question to you and myself, "If you knew that you would lose your job and be out of work for six months, would you change your spending habits?" If you answer yes then now is the time to consider making some changes.

The things that matter most in life are the people we love and care about. If you are afraid you will lose your job, talk to them frankly and ask for their support. You don't have to suffer in silence. Talking things over will make it easier in the long run. Just having their support will make a huge difference if that day ever arrives.

Lose Job Step 5 - Generosity

If you lose your job you may feel poor and lose the feeling of accomplishment that working brings. You may feel useless and helpless, unable to contribute in a positive way. It's easy to lose your perspective on life.

A good thing to remember is that there is always someone worse off than you. When you feel poor and hopeless is a great time to think about being generous to someone worse off than you. Did you know that the poorest people are the most generous toward other people in need?

I was shocked to find out that there are 10 million children that will die this year because of poverty. Most of these deaths could be easily prevented. A small gift can make a huge difference to them, the difference between life and death. There are many charities working with the poor. Please see if you can help. My favorite charity is Compassion International, a Christian organization that is working to end poverty through child sponsorship. You might not be able to save 10 million people but you can make a difference in someone's life. Find an organization that you can support financially or by volunteering your time. Working together we can make a difference in our world today.

When a person gives generously to others they will focus less on their own situation and have a better perspective and outlook on life in general. You will be in a much better state of mind to face whatever comes along, even it is a lose job situation.

Lastly, remember that a lost job opens a door of opportunity for a much better job or a better career.

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