When the Pink Slip Makes you Blue
Lee Rosenberg, CFP | September 16th, 2009Before our economic woes got our undivided attention, one of the greatest fantasies for employees and business owners was the idea of being able to take early retirement. But with the staggering unemployment numbers, it means that for far too many, early retirement has become a forced retirement.
If you are one of the millions of Americans trying to get back into the job market or back into businesses, here are some strategies for staying mentally and fiscally fit while you regroup.
Be like a TV and network: Studies indicate that a successful job search today is less dependent on classified ads and resumes than it is personal connections. More people gain employment through getting involved in organizations, attending conferences and seminars and asking to meet people for an informational session about their companies. More than ever, it’s not what you know…
Bury the loss: Losing a job is devastating, and though it doesn’t compare to losing a friend or loved one, there is something to be said for going through a mourning process and moving on. Once you can accept your fate and let go of any anger/ anxiety, the faster you can recover emotionally and focus on the opportunities.
Turn Lemons into Lemonade: Often times, a job loss ends a period that was unhappy or boring anyway, but even if you loved your work, use this opportunity to explore jobs or fields that hold great interest to you. Consider going back to school or getting retrained (or maybe going to your employer’s biggest competitor). Think about what you have to gain rather than what you have lost.
From a financial standpoint, here are some helpful ways to stay solvent:
o Take a hard look at expenses and eliminate the unessential
o Anticipate any major expense such as a tuition payment or medical expense and try to prepare for that in advance
o Chop debts where possible, particularly the high interest credit cards
o Set up an emergency fund using severance pay, vacation pay, money market or bank account assets as a primary source
o Keep a line of credit available from a checking account overdraft privilege, brokerage accounts with a line or credit, or as a last resort- a home equity loan
o Work with a financial advisor to review investment strategies that might help compensate for the temporary loss of income. Perhaps a more aggressive approach could pay off, eliminating some of the stress.
o Above all, don’t panic. Hopefully you will soon be back on your feet and your plans for a comfortable retirement (although not early) will still be on the horizon.
Related posts:
- Is it Time to Reduce Your Taxable Estate? Gifting Makes Everyone Happy The old adage about turning lemons into lemonade may turn...
- Year End Losses Don’t Have to Be Taxing: (Hint: maximizing your tax refund may be the best investment...
- Will Transferring Assets To Cash Really Make You Safer? Despite the fact that well over 30 billion dollars has...
- The Half Time Report from the Financial Sidelines Given the daunting political and economic climate, doesn’t it sometimes...
- How to Choose a Financial Advisor In the midst of all of the economic turmoil, everyone...
Related posts brought to you by Yet Another Related Posts Plugin.
Tags: job search, layoffs, personal finance, savings, unemployed, unemployement
About the Author: Lee Rosenberg is the Co-founder of ARS Financial Services, Inc. As a Certified Financial Planner with more than 34 years of solid financial expertise. Lee is a registered representative of Cadaret, Grant & Co., Inc. He was also named one of the top 25 Independent Financial Advisers in the US by Rep magazine.
