Each week as @DorethiaConner & with my co-host @BenitaTyler,we interview experts on my weekly Twitter Online Show #MoneyChat held at 8p.m - 9p.m. ET.
This is a detailed transcript from our #MoneyChat segment addressing the financial concerns of those who have lost their jobs. Benita and I answer the most frequently asked questions. Benita is a Tax, Accounting and Small Business Expert - you can learn more at TBS USA Accountants and Tax Advisors
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There are an average of 15.3 million Americans unemployed. In the beginning of the downturn the automotive industry was providing buyouts and corporations were giving severances. Now, much of that has tapered off and many are simply being asked to exit. So what do you do in this situation?
First, I’d like to say that this is a very emotional experience. A million scenarios may go through your mind as to how this happened, your loyalty to the company, your co-workers etc. It’s okay to be emotional, it’s hard to take in what has happened at first. But once you’ve gotten over the shock of it all, you must take action.
What do you suggest we do in today’s market knowing that it is so volatile?
With uncertainty in the job market the chances of experiencing fewer hours, slower sales, and job loss is hitting home for a lot of people. These early signs are forewarnings that preparation is key. Have your emergency tools ready so that if this strikes home you are ready. Things you should have ready are
With uncertainty in the job market the chances of experiencing fewer hours, slower sales, and job loss is hitting home for a lot of people. These early signs are forewarnings that preparation is key. Have your emergency tools ready so that if this strikes home you are ready. Things you should have ready are
- Resume/Cover Letter on CD and hard copies – you will need several versions
- Interview clothes
- 3 – 12 months emergency fund
- A good network – (it pays to be nice to people, you never know who can help you land a job)
Where do you start once you’ve been laid off?
1. Whether you have received a severance or not, immediately file for unemployment. Since there are so many applicants, it is taking longer to receive benefits, so file quickly as you don’t know how long it will take to find a job
2. Map out your finances, what are your monthly income and expenses. If you have a working spouse, how much will their income cover your bills? How long will severance and savings last?
3. Seriously slashing. Now this isn’t just - don’t get that daily latte’ slashing, this is cut everything outside of our bare necessities slashing.
How do you determine who gets paid?
Pay These 1st:
- Housing: Rent/Mortgage – Try to get your mortgage loan modified to lower monthly payment
- Food: Cut coupons, buy off brands, but make sure there’s enough food in the house
- Utilities: Be super conservative with energy use, but pay this bill – TURN THOSE LIGHTS OFF!
- Transportation: You need a way to get around to look for a job – pay the car note, keep gas in the car. If you have two car payments consider selling one to downsize
DO NOT use credit cards or payday advances to fill in the gaps!
You will only pile on more debt and make the situation worse!
What should you do to stay motivated?
Don’t isolate yourself, surround yourself with the most positive people you know. It will be important to have cheerleaders to inspire you to get up and stay in the game. It may look bad now but the game isn’t over. It’s only over if you don’t show up for the next round.
If you feel yourself slipping into depression, get help as soon as possible. For example: if you want to lay in bed more days than you want to get your day started that is a sign you need to talk to a professional
Some people get stressed because they feel deprived when no income is coming in. What do you suggest?
Find alternative sources of entertainment. You may be used to going out to dinner and the movies on the weekends but when you lose your job you have to get realistic with spending. Think of alternative ways that you can enjoy yourself that are free or at least low cost. Perhaps substitute dining out for potluck with family and friends and while you’re at it you can exchange the movie tickets for a game of charades, free community event, or weekend book club.
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If you'd like more information on how you can effectively manage your personal or business finances, or grow your business utilizing social media marketing tools, subscribe to Dorethia's email list at www.connercoaching.com. Once you subscribe you can download FREE Spending Plans and other resources!
Dorethia Conner, MBA, is the President of Conner Financial Coaching. She is a financial coach, who is often called upon as a resource for national media, including being a recurrent
featured financial expert in Black
For more information, or to request Dorethia to speak to your group or organization, please visit www.connercoaching.com, call 800.962.2491 or email info@connercoaching.com.Enterprise Magazine.
Your Financial Coach,
-Dorethia
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