Financial Survival – Planning

    Published: 06-16-2009
    Views: 12,600
    Mark Johannessen, financial planner and member of the Financial Planning Association talks about putting a plan into place after losing a job.

    Mark Johannessen: Hi! I am Mark Johannessen, and I'm a financial planner and member of the Financial Planning Association. I'm here to discuss job loss. Right now, I'm going to talk about putting a plan into place after losing a job.

    Many newly unemployed assume they'll find the job quickly and decide to take a little vacation before initiating their job search. This is probably a bad idea. You maybe misjudging the job market and your ability to secure a comparable position.

    Potential employers may not be impressed with a six months gap in your employment history. A job loss maybe a good opportunity to reassess your career. However, before launching into a career during a time of unemployment, answer honestly the following questions.

    Is it realistic to make a change? Are you qualified for this new career? Are your job skills and education up-to-date? Can you afford to invest the time and money to upgrade or learn new skills? Now there's no time to be shy or embarrassed about your job loss. Announce it to everyone you know. Network with people in your field. Join or make use of trade association membership to circulate your resume and learn about jobs.

    It's also important to find healthy ways of dealing with the emotions that surround the job loss. Stay busy. Get on a schedule, exercise, spend time with family, focus on positive aspects of this transition, and give yourself time to regain equilibrium.

    Now let's dive into some specific financial steps to take immediately when faced with a job loss, starting with the severance package.