You've Just Lost Your Job. Now What?

Maybe you saw it coming, maybe you didn't, but there it is — the pink slip in your inbox, the personnel officer shaking your hand as you're shown the door. So, what are you going to do now--I mean, right now?

Evaluate your Exit Package

If you haven't already done so, find out the exact terms of your termination. Are you being fired for cause? Laid off? Downsized? Will you lose your health insurance immediately (unless you pay to extend it through COBRA), or will it carry you through the end of the month? Are you being offered a severance package? (Do you have any leverage to negotiate it?) Will receiving it depend on signing a waiver? (If so, you might want to consult an attorney first.) Are you required to sign a noncompetition or a nondisclosure agreement? Will you receive any help searching for a new job (outplacement), or be allowed to use company equipment (copy machine, telephones, etc.) while you're doing so? Will your former employers write references for you? And what will they say about you when future potential employers call to verify your employment?

Call your State Unemployment Office

Since your unemployment benefits may not start until two or three weeks after you file your claim, the faster you can initiate processing of your claim, the sooner you'll receive your first check. In general, your benefits will be a percentage of your earnings, up to your state's maximum claim amount. Depending on your state, your benefits may last up to 26 weeks, and may be extended during periods of high unemployment.

Tell your Family, Friends and Associates

Losing a job is one of life's hardest experiences, and you shouldn't try to "go it alone." Tell your family, friends and business associates what has happened. Not only can they be emotionally supportive, but they also may be able to help you find your next job. During any transition between jobs, particularly one that takes a while, your lifestyle may be affected, and your family, particularly those you support, will need to understand the financial implications of this.

Review your Financial Situation

Obviously, your financial situation will be impacted by your loss of income, especially if your lack of employment lasts a while, so now's the time to rethink your budget, even if it turns out only to be for the short term. Determine your expected income from unemployment benefits and other sources, such as severance pay, part-time temporary employment, investment income and perhaps spousal income. Then develop a bare-bones budget — one that pays the essentials and postpones the nonessentials — and compare it to your expected income.

If your expenses will exceed your income, schedule withdrawals from your cash reserve to cover the difference. (Your cash reserve? It's that "financial safety net" of three to six months income you've accumulated for a situation such as this.)

Also list any other possible sources of income, including investment accounts or other assets you could sell if you need to.

Update and Reflect

If you haven't done so, update your resume to reflect your recent work history, experience and references.

There's no better time than this to determine if you're going where you want to with your career. Are you happy with the type of work you do, or is now a good time to make a change? Whether you're making a change or not, would now be a good time to update your skills, or learn new ones, to make yourself more marketable?

If you will be changing careers, slant your resume to highlight the skills and experience relevant to your new direction.

Hit the Floor Running

Looking for work is, in itself, a full-time job, and you should treat it as such. Look for employment online, in newspapers and in trade journals. Contact employment agencies and headhunters. Attend industry conferences or seminars, relevant community events and networking meetings to make new contacts and disseminate your resume. Follow up any new employment leads in writing and/or with telephone calls.

Be positive, and be aggressive. Believe in yourself and your abilities, and don't wait for the world to come to you.