SubscribeFri 18 May 2007
There’s been a recent spate of articles on the pfblogsphere about what do when you lose your job. This is my own drop in the proverbial bucket.
I think LazyMan stated it with his response to plea for advice, then Jim took note referencing one of Mapgirl’s post from last month. I’m sure other bloggers have responded as well, but those are the people I read and have come across.
I’ve never lost my job. Knock on wood. However having been very personally through the dot com boom and bust, and the Enron led energy industry meltdown, I’ve been well within firing distance. I think we live in a society where company loyalty, and employment security is a thing of the past. I don’t think this a good or bad thing, just the product of a more fluid and flexible economy.
However, with this great risk shift most people are not adequately prepared to deal with the reality of losing a job. There are two ways to be prepared. 1) Financially 2) Mentally - If you’ve got the 2nd part handled, the former will come of itself.
So how do you prepare yourself?
- Never be too proud – be willing to take a whatever job temporarily to pay whatever bills
- Know that you can turn off the spigot. Ken Lay during his trials was quoted saying “We had realized the American Dream and we were living a very expensive lifestyle. It’s the type of lifestyle that’s difficult to turn off like a spigot.” Don’t be like Ken Lay. Make an emergency budget so you know what items can be easily shut off.
- Make sure your network is always fresh. You should not only always have an old colleague’s email or phone number handy, but ideally have talked that person in the last 6 months. I’m actually terrible at this – just not my nature, though I get by with a very good network outside of the workplace.
- Have current skills. Self improvement is its own reward.
- Be current on your medical and dental visits so you don’t have to pay out of pocket when your insurance runs out.
Often it’s not the person who has a lot of money that deals well with a sudden financial crisis, but rather the exact opposite – the person who doesn’t have a ton. Why is that? The latter is often times more adaptable. Never be afraid to change.
p.s. I haven’t read the Great Risk Shift, and do not have an opinion one way or another. I should read it but there are many many books on that list… Someday I’ll find the time when I’m not working on this blog.
If you enjoyed this post, please subscribe to the RSS feed
May 18th, 2007 at 9:12 am
Thanks for the link repost!
Ken Lay’s comment is disengenous. You can turn of the spigot if you must. Lots of people do it with their fortunes turn overnight. It just takes gumption Mr. Lay, not the unmitigated gall you presented to your shareholders. (FWIW, my longtime neighbor’s son worked there as a fresh college graduate and lost his retirement savings. But I think he’s like 25 so he’s got plenty of time to recover.)
Ooh. Along with your last point, I’d say buy COBRA. Debt Hater passed on COBRA when she left her job and got screwed. I know if you don’t have continuous coverage, an pre-existing condition treatment might get denied with a new provider. It’s expensive, but how expensive will one medical emergency get? It’s often one single medical expense that keeps people in financial dire straits.
May 18th, 2007 at 10:22 am
Great point about the Cobra - I should’ve mentioned it.
My brother worked at Enron as well, but he was lucky and decided to go to Business School and cashed out before it all hit the fan. He was lucky. Most of his coworkers were not.
May 20th, 2007 at 8:07 pm
I agree with mapgirl about the COBRA. I think it is very important to not be too proud. I worked at a retail store while I was looking for a job after I graduated from college. I took every extra shift that I could get and I started lifeguarding again. Money was tight, but I managed. I know that I would be totally able to pare my expenses down and live on a lower wage.
Great post!