Do not panic if you lost your job!

Ok, your job is like a home run: going, going, gone.

A bit of panic sets in- for good reason. Questions like: how will I tell my spouse/partner? What of this information do we share with our kids? How do I tell them? Will they understand? Will they panic?

Oh yeah, other stuff, like paying my mortgage, car payment, credit card bills…

It is a daunting task to just try and understand the financial impact of this news, never mind trying to logically- not emotionally- figure out your best course of action.

So, here are some basic ideas you can use when making decisions:

• The emotional reaction is real- I know because I have been there in your shoes- so don’t feel that you are alone in your reactions. It does not make you weak.
• The communication piece, telling your spouse/partner, - your just have to get this done and expect their reaction may also be emotional. In the New Age vernacular, “Give them their space”. Remember- this was tough for you to hear and now they are hearing it for the first time.
• A small indulgence may be appropriate to ease your pain- but pay cash, keep in under $100, and share it with your partner.

The money issue is a big one, maybe the 800 lb gorilla- so tackle it by peeling one banana at a time and not the whole bunch

Where art thou $$? (Thanks Shakespeare)

Create a Personal Spending Plan (PSP) Time to get out the old pencil and pad (somehow using the keyboard just doesn’t seem the same) and write down all of your bills for the last month (be sure and include bills you may pay quarterly or semi-annually); next check how much cash is in your bank accts , money market accounts- where you can access cash quickly with little or no penalty- NOT YOUR RETIREMENT ACCOUNTS.

Do the math: subtract your monthly outgo from the cash on hand (a severance package may ease the pain). This number gives you a clear picture of two key ingredients to your financial health: how much you are spending per month and how long you can go before running out of funds.

Yes, it is time to network and time to cut expenses and job hunt, but at least you have the knowledge of your “financial footprint”- like a carbon footprint.

401k FOCUS: you will be actively solicited by all kinds of financial types to rollover your 401k into your own IRA that the financial firm will manage for you. This is both good and bad. Unless your balance is less than $3500 ( in some situations $5000) you are not required to move your 401k away from your former employer

401k FOCUS: My initial guidance is to NOT feel pressured or rushed into a rollover. In an emotional time one is prone to make poor financial decisions that cannot be undone. So, consider waiting 60 days- and getting your Personal Spending Plan in good working order – before serious considering what your choices are in regards to your 401k. Final note: if you have a loan against your 401k from your former employer rest assured that you will be required to pay it back – the loan amount often times may be simply subtracted from your current balance- prior to your 401k being rollover and out.

Community Contributors - Career and Job