Newly Unemployed? 7 Sound Steps From Experts To Get Back on the Right Track
Written by
Martin Dasko
Edited by
Amen Oyiboke
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Many people have unexpectedly lost their jobs due to the various layoffs announced over the last few years. While going through a job loss can be a stressful process, it’s essential that you do your best to get right back on track so that you don’t fall behind in your career and with your bills.
What should you do if you were newly unemployed? These are the different steps to get back on the right track.
Career Moves You Should Make
We will start off by looking at the necessary professional moves you should strive to make as soon as you lose your job.
Step 1: Ask For Documentation
“If you have been terminated for external reasons such as a business downturn, restructuring, or relocation, ask your previous employer for a layoff letter,” said Nathan Brunner, CEO of Salarship. “By providing documented proof that the circumstances surrounding your layoff were outside your control, prospective employers will be more confident in hiring you.” You’ll want to get this documentation and a possible reference letter to help you land another job in a similar industry.
Step 2: Work On Your Weaknesses
“On the other hand, if your dismissal resulted from a personal mistake, it is imperative not to let yourself down and to consider this as a learning opportunity,” Brunner expressed. “In your next interviews, when the recruiter asks you why you were laid off, you must acknowledge your mistakes and explain the steps you took to grow out of them.”
If you lost your job due to a mistake or poor performance, you could use this time to upgrade your skills and work at becoming better in your role. The goal is to know why you’ve lost your job and become unemployed.
Step 3: Tap Into Your Network
“Update your resume and LinkedIn profile to reflect your most recent job experiences and skills,” commented Taylor Kovar, CFP and CEO of Kovar Wealth Management. “Reach out to professional contacts, join relevant groups, attend networking events, and consider informational interviews in industries of interest. Apply for jobs, but do so strategically. Tailor your applications to each job and leverage your network.” You’ll want to start reaching out to your contacts to see your prospects so you can decide how to proceed. This is also the ideal time to work on updating your resume to reflect any improvements or changes in your professional responsibilities.
Money Moves You Should Make
Once you’ve figured out your professional moves, it’s time to move on to your finances. These financial moves will help you get on the right track.
Step 4: Assess Your Finances And Make Necessary Changes
“Review your savings, especially your emergency fund, to determine how long you can cover your expenses and identify areas where you can cut back,” commented Kovar. “Cut non-essential expenses and focus on necessities like housing, utilities, and food. File for unemployment benefits as soon as possible to minimize any income gap.” At this point, you want to ensure you have enough money to last until you land back on your feet with another gig.
“Now is a great time to scale back your budget to focus on necessary expenses only,” according to attorney and personal finance expert Erika Kullberg. “Temporarily cut out that gym membership or entertainment subscription and break habits like ordering takeout. You can always add these expenses back once you have a steady income stream from your new job or business.” You want to try to stay as lean as possible financially as you navigate your next professional move.
Step 5: Look Into Your Income Options
“If you are recently unemployed for whatever reason, your first step to taking control of your finances should be to identify your income options and how much money you have available to you, whether that be unemployment benefits, severance pay, or an emergency fund,” said Kullberg. You want to look into how much money you have coming your way so that you can see where you stand. You’ll want to assess the level of your emergency fund and any severance you may have coming in to see how long you can pay your bills while looking for another job.
Step 6: Look Into Freelance Work
“Consider temporary or freelance work, which can provide income during your job search and might lead to full-time opportunities,” expressed Kovar. This would be the perfect opportunity if you’ve ever wanted to try working for yourself. You can test out your skills on the freelance market by applying for projects on platforms like Freelancer.com. You may find out that you have the skills to bring in a lucrative income through freelance projects.
Step 7: Find Ways To Cut Back One Major Expense
“If you have some free time on your hands now that you aren’t working, it’s also a great time to see if you can make some moves that will save you money,” shared Kullberg. “For example, if you can qualify for a lower interest rate thanks to a recently improved credit score, you may want to apply to consolidate your debt. The less you spend on interest, the faster it will be to pay off your debt and the less strain you will have on your monthly budget.”
Since you may have been too busy with your career to assess your finances constantly, this would be the best time to work on bringing down a major expense or two. Kullberg suggested, “Shop around for better insurance rates, learn how to cook at home, and focus on paying off your highest-interest sources of debt to keep your budget nice and lean.” As you figure out the next career move in your life, you want to ensure that you have your finances to have one less thing to stress about.
Closing Thoughts
Being newly unemployed can be a stressful period in your life, but the positive is that you have access to the resources needed to help you bounce back. You could get back on the right track relatively quickly by assessing your finances, reaching out to your network, and looking into freelance work.
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