What To Do When You Lose Your Job and You Have No Money or Savings

Posted by under Personal Finance . Published: June 8, 2020

It’s never easy to lose a job. And that difficulty has been amplified in recent weeks, as mass layoffs are happening around the world, including our country, due to the economic impact of this pandemic.

It’s never easy to lose a job. And it’s more difficult if it happens when you have no safety net — no money nor savings, that could help you get through until you find new work.

It’s never easy to lose a job. But I hope to make it less difficult for you today, by sharing what exactly I’d do if it were to happen to me, and I have zero balance on my bank account.

Blueprint to Bouncing Back from a Job Loss

1. Take care of your mental health and manage your sense of self-worth.

2. Work out the numbers for living at bare minimum.

3. Run an inventory of your resources and capital.

4. Open as many doors as you can until you see an exit.

1. Mental health matters

Our work is part of our identity, and when we lose it — a part of us dies. Thus, it’s important to allow ourselves to grieve for this loss, but never dwell on your situation.

It helps a lot to find emotional support from your loved ones, and be able to speak your mind with someone who knows how to listen. Take care of yourself, and nurse your sense of self-worth back to good health.

Do it at your own pace, but remember that the longer you wait to begin to make a plan, then the more difficult it may be to get back up on your feet. When you feel that you’re ready, then it’s time for the next step.

Listen: How to Cope with Losing Your Job

2. Live on the bare minimum

Sit down and run the numbers with your family. How much is your essential cost of living? And more importantly, make a plan on how you can cut back on your current lifestyle to reach that state.

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Furthermore, call your debtors and ask if it’s possible to defer payments. But don’t be disappointed if they don’t or cannot grant this request.

If you received separation pay, then use that to survive until you are able to exit through the tunnel — which you will soon enough, if you stay focused and determined.

If you were fired, and won’t receive a single centavo, then buckle up and prepare to hustle. Moreover, as much as it’s tempting to borrow money or take out a loan at this time, I would advice against it unless it’s the only option left on the table.

3. Know your resources.

Money is not the only capital that you have. Create a list of all your skills, talents, abilities, and competencies — including those that may seem trivial, like juggling — because you honestly don’t know if that could come in handy.

Next, write down the names of everyone in your network, who you think can help you during this time. Remember that opportunities are always attached to a person, so your ticket out of unemployment could just be one phone call or private message away.

What you know, and who you know — these are the fuel and batteries that will run your engine for the journey ahead.

4. Open all doors.

Your instinct would dictate that you immediately look for a new job. Your instinct is not wrong. So, go ahead and update your resume and social media accounts. Reach out to your contacts, and let the world know that you’re on a job hunt.

However, realize that looking for new work could take some time. And thus, you should also be brave enough to open doors that could create some cashflow.

Sell something. Offer your services. Do a side hustle. Explore freelancing. Get a part-time job. Try direct selling or network marketing. Build a home-based business. Every little bit of money you could earn will help.

Who knows, perhaps you’ll stumble upon an income opportunity that you could run away with. I’ve met entrepreneurs and freelancers, whose success stories originally began on the day they lost their job. Maybe you’re destined to have that kind of success story too.

Looking for concrete ideas?

It’s never easy to lose a job. And getting back up on your feet will be difficult, but it’s not impossible.

You’re experiencing tough times, but you’re also writing your own inspirational story of determination and resilience, which you’ll proudly tell your friends and loved ones in the future — so make it a good one.

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