The first steps to take after becoming unemployed.

I know how you’re feeling, I have been there.  It wasn’t me personally who lost my job (I am a stay at home mom), but it was my husband.  Within a heartbeat our only source of income vanished.  The financial security blanket for me, our three children and my husband was yanked out of our hands and our world was turned completely upside down.  We had the same questions you are probably asking; “Why me?”  “What now?” “Where do I begin?” and “How will we survive?”  I want you to know, that it WILL all be ok!  I have been through it and never thought we would survive, but we did, and you will too!!  This article is to help you know exactly what to do if you lose your job.

Take a Breath

First, take a long deep breath.  You need to take a moment to just be still.  If you enjoy meditating…meditate.  If you believe in prayer, pray.  No doubt you have a million thoughts and emotions running through your head.  You have a long road ahead of you, and you will need to be in the best state of mind as possible.

Apply for Unemployment

One of the very first things you should do when you lose your job is to apply for unemployment benefits.  The process for unemployment will vary from state to state.  Call, or better yet, stop by your local Unemployment Office to fill out the application and ask any and all questions you have.

The process is fairly straightforward and easy.  The sooner you apply the quicker you will begin receiving benefits, so do this step ASAP!

Don’t let pride get in the way of applying for unemployment, we dragged out feet a little bit because we were to proud, and that was the wrong decision.  Remember, this is a temporary situation and you’ll get right back on your feet again, it’s OK to have some help to keep you going.

Look Into Healthcare Options

Unfortunately, losing a job often means losing your health care plan as well.  The good news is that there are options available for those out of work!

1.COBRA

COBRA is a great health care option to look into.  In short COBRA allows the unemployed to stay on their current employers coverage for a limited amount of time.

It’s important to remember that not everyone will qualify for COBRA and there are some pros and cons to this plan.  I suggest doing some thorough research to help you decide if this is the right option for you.  I found this this informative article you might want to look at for more details about health care through COBRA.

2. Marketplace Health Insurance (“Obamacare”)

The government health care marketplace, also known as Obamacare was introduced in 2010.   This is a fantastic option when unemployed.  You are able to buy a plan immediately after losing a job, no matter the circumstances.  There are no rules or limitations!  Be sure to enroll during the special enrollment period, 60 days after losing your employers health coverage.

3. Private Health Insurance

Another, usually more expensive option, is to buy a plan from Private Health insurance.  I recommend a high deductible plan, which will give you lower monthly payments.

4. Medicaid

Medicaid offers financial assistance to low income individuals who are disabled, elderly, pregnant women, children and families.  This service is not dependent on your job status, but your income and size of household.  If you are unsure if you qualify or not, call your local Medicaid office and they can help you.

Decide What To Do With Your 401K

The next thing you need to do is decide what you want to do with your 401K.  Here are a few suggestions of what you should do with this account:

1. Roll It Over

I highly recommend rolling your 401k account into a different retirement account.  We prefer putting it into our IRA, because it gives us more investing options.

2. Leave It Alone

If you don’t want to roll it over to a new plan you can leave the 401k as is.  I don’t recommend this, as it won’t grow as fast without someone managing it.

Take a Serious Look at Your Finances

It’s time to take a good long hard look at your financial situation.  Take some time to sit down and go over your expenses.  Try to determine how long your money will be able to cover your living expenses.

If you have an emergency fund (which I hope you do!) this is definitely a time to use it.

Make a Budget

You will need to make a budget based off of your new income, which might be zero for the time being.  Be willing to make extreme budget cuts.  This is not easy, but remind yourself it is temporary!  You will be able to get back to your normal living situation in time.

The most important things to have in your budget are your necessary living expenses:  food, shelter, transportation and utilities.  Almost everything else can be cut out.

• Related:  How to Make a Zero Based Budget

Update Resume

Dust off your resume and give it a good update.  If you are unsure how to write a resume, or what to include research some free online tutorials or workshops.  Your city might have some available, and there are plenty resources online.

Once your resume is updated begin dropping it off to local businesses you would like to work at.  Putting your foot in the door never hurt anyone!

Network, Network, Network

One of the very most important things when searching for a new job is to network.  Most jobs are found through word of mouth, which takes effort on your part!

Reach out to old friends, coworkers, etc.  Ask if they know of any job openings.  This is not a time to be shy.  Put yourself out there!  Most people will be more than willing to help!

LinkedIn

If you don’t already have a LinkedIn profile, it’s time to make one.  If you already have a LinkedIn profile, update it!

LinkedIn is a fantastic platform for marketing your skills while connecting with prospective employers and opportunities.  Use it to your advantage.  Engage with others, reach out, show some personality.  This can be a huge benefit to you as you begin to network.

Apply For Jobs

Searching and applying for jobs should become a part of your new daily routine.

First, brainstorm a list of potential employers in your area.  Get into the habit of calling and/or stopping in to these businesses every few weeks.  Hand them your resume, show them your face, ask about job openings, and always be polite and professional (this is important!).

Next, check local job listings for any new leads.  Look on Facebook Marketplace, Craigslist, Indeed, Career Building and Glass Door daily.  Apply for the ones you feel qualified for.

My rule of thumb, is that it never hurts to try!  Send out that resume!  You never know what might fall in your lap.

Practice Interview Questions

Use this extra time to prep yourself for upcoming interviews.  Research possible interview questions and rehearse your answers.  I encourage you to practice interviewing in front of a mirror.  It helps you see yourself and your mannerisms and gives you some ideas of things you might want to change.

Follow Up

Make sure you do a thorough follow up after any contact with potential employers.  This might be a simple phone call a week after dropping off your resume.  Or, send out a thank you email after an interview.  This shows future employers that you can take initiative and are serious about the job.

Honestly, these simple follow ups was what led my husband to his job during unemployment.

Stay Positive

Most importantly, try to stay positive.  I know how discouraging it can be to lose a job.  I know how stressful it gets when door after door after door gets closed in your face.  It is hard to stay positive during these hard times, but the more positive you can stay, the better this time will be.

Don’t forget to take time to do things that bring you joy.  Go for a walk and get some exercise.  Spend a night playing games as family.  Read a favorite book.  Take your mind off of your job search now and then in order to keep your spirits up.

In Conclusion

Keep your chin up.  Many people lose their jobs every day, and they are all able to find new ones, you will too!  Please, reach out if you need any help or guidance.  I am always here for you!

I have been through this tough struggle, and I am passionate about helping others get through it too!

Related Articles:

• Budget for Beginners: FAQ
• 9 Ways to Kick The Emotional Spending Habit

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I hope this helps you to know what to do if you lose your job.

So, about 10 years ago I read the book that changed my life, Dave Ramseys Total Money Makeover and I knew it was time to start looking at our finances differently.

I approached this thought to my husband and he didn’t understand.  He felt like we didn’t over spend (which is mostly true), he told me that we are already saving each month (which we did), and making a budget just felt like a lot of extra work (which it is).

It took me a few months of talking to him about it before I finally asked, “Can we just try it?  Let’s just try it for one month and see how it goes.  I think it could really help us!”

Fortunately, he agreed.  We sat together one evening and set up a budget.  There were frustrations, we have had plenty of mishaps, and we have had to start and restart time and time again.  But.  A decade later and we still budget.  In fact, my husband is the one that 99% of the time reminds me it’s time to discuss the budget.

So what changed?  I believe there were two main points that changed my husbands mind about the whole budget thing.

1.  He saw that a budget did in fact make a difference.  He really didn’t think having a budget would encourage us to spend less, he was pleasantly surprised when he saw the difference in our spending from the budgeting months to non-budgeting months.
2. It became a habit.  He really didn’t like the idea of having “one more thing” on his to do list.  But, after a few months it has become a habit and doesn’t feel like an extra chore, it’s just what we do.

Now, I understand that not all situations go like mine.  Some spouses are more willing and others are much less willing to budget together.  Here are a few tips to help you when your spouse just doesn’t want to budget.

1.  Communicate.

Communication is so important in a marriage, and finances is no different.  Communicate with your spouse why you want to budget and your goals and concerns for your future.  Explain to him why this is important to you, and why it is important to you to do together.

In return, listen.  Listen to your spouses concerns.  Ask him why he doesn’t want to budget, ask him how you can help make it easier for them, and genuinely listen and care about his responses.

2.  Make it Fun

Instead of saying, “Let’s have a budget meeting.” (I mean, that prob sounds fairly boring to a non budget lover, right!?), invite your spouse to something fun, plus a budget meeting!

You could go on a walk, have a picnic, bring their favorite foods.  Make the budget meetings a little less boring and try to make it a fun experience for everyone involved.

2.  No Blaming

When it comes to the budget you need to work as a team.  Avoid putting blame on your spouse.  Instead of, “You spent way to much this month!” say phrases like, “We spent to much this month.”  Yes!  Even if it truly might be your spouse overspending, work as a team and never ever blame.  The only thing blaming will bring is contention.

3.  Be willing to compromise

Within all matters of marriage, compromise is an essential element, and budgeting together is no different.  Maybe you are super frugal and your spouse isn’t.  Allow him to spend a little more (within reason) in areas that you might feel aren’t important.

Find a way to meet in the middle.  Perhaps your spouse wants to get a hair cut and color every month, but you feel that makes the budget to tight.  Ask if they would be willing to get a cut and color every 6-8 weeks instead.

4.  Personal Spending Money

Include personal spending money for both you and your spouse.  This spending money gives both of you the freedom to spend how you want, when you want, with completely no guilt or judgement attached to it.

The amount received for personal spending will vary based on your income and expenses.  However, you and your spouse should both receive the exact same amount.

• Related:  Budget for Beginners: FAQ

5.  Be the Example

Maybe your spouse just doesn’t get it!  The whole idea of budgeting might be a little daunting or strange to them.  Be an example of living by a successful budget so they can learn from you.

Excitedly show your partner how much money you saved by doing “xyz” that month.  Your positive attitude just might rub off and they will want to join in on your success.

6.  Celebrate the Wins

Positive reinforcement goes a long ways in marriage, and life in general.  When your spouse sticks to the budget, celebrate.  Buy their favorite treat, genuinely praise them, and let them know how proud you are of them.

Everyone likes to feel appreciated and having mini celebrations can help budgeting feel much more bearable.

7.  Make a Plan Together

Together is the key word in this.  Sit down and discuss your goals for the future and present.  Plan out how you can reach these goals and make a plan going forward.  Allow your spouse to give their opinions about the way the plan and budget will look.  It might not be exactly how you think it should be, but remember compromise matters.

When Nothing Works

If you have tried everything you can to get your spouse to budget and it’s just not working, you are not alone.  Financial disagreements are common among all couples.

Focus on the things that you can control within your budget.  Spend wisely.  Budget as best as you can by yourself and do what you can to keep the finances in order.  Alone is never fun, but it can be done.  Lean on support groups through facebook or family and friends to help give you the support you need.

Need More Frugal Help?

More tips on getting your spouse to budget all things frugal living, be sure to check out my Quick Start Guide to Frugal Living where I give you the tools you need to be successful with making a budget, meal planning, frugality and more!