Tips for Financial Planning During Unemployment

I recently joined a friend of mine, Matthew Johnson, on Facebook Live to discuss #layoffs and how one may approach the time you have during your gap in employment. I placed these thoughts into five buckets I called: "5 Pillars of Focus During Layoffs" 1. Spiritual - Get grounded in your faith. As a Christian, I ground myself in the truths of the Bible and the promises I believe in. [Example: Exodus 14:14 says, "The Lord Himself will fight for you. Just stay calm."] - If you are not a part of a particular faith, ground yourself in a positive mindset. The relationship you have with your mind and spirit are important during this time. - Don't let this time impact your confidence. - Don't burn bridges on the way out- Leave well. - Define your WHY! - What will you say "yes" to and what will you say "no" to. If something does not align with your value set, stay true to your convictions. 2. Professional - Update your resume and LinkedIn profile. - Make sure you include results, not only job descriptions. - If you have a little while until your actual last day, get ready to leave. Gather your results, stories, accomplishments, etc. to be able to put them on a resume and speak to in interviews. Odds are you haven't thought about these in while. - Gather references and referrals on LinkedIn. - Prepare answers to common interview questions and practice. 3. Financial - Get ready financially- save nuts for the winter. Save as much as possible right now to be able to weather the storm for a bit. - File for Unemployment. Don't be ashamed to do this. Your employer paid into this system on your behalf, you may as well take advantage of the resource. - Look at all your subscriptions. What are you not using, or do you not need right now? Do you need 2-3 music subscriptions, or will one do for right now? - What is on auto-draft that you haven't been paying attention to that you can cancel? - What services do you pay for monthly that you can cancel? Ex. Apple Watch from your cellular carrier? Add-on features? - Can you go get your own groceries and food? Don't pay the fees of Door Dash or Instacart right now. Those charges add up! - If you don't absolutely need it, cancel it! 4. Relational - Get ready to network. - Start making a list in Google Sheets of everyone you know who may be able to help you. - Go through your contacts in your phone or LinkedIn and anyone who can remotely help or introduce you to anyone in their network, write that person down. - People want to help you- the more you define what they can do for you, they will do it most of the time. 5. Physical/Mental Health - Get ready physically, mentally and emotionally. - Exercise regularly - go for a walk if you don't have a routine. - Exercise your mind - read, learn, stimulate your brain. - Find something other than the job search to occupy your mind and keep you sharp. Ex. I began to post leadership and personal finance thoughts on LinkedIn.

One of the less desirable side-effects of being laid off has been the financial decisions and adjustments that it comes with. As a card-carrying member of the Feast or Famine Tech industry, I have grown up thinking of my pay in terms of the infamously complex “ total compensation package”.  The varied channels of compensation have made my unemployment decisions more nuanced and complex. Here are the big ticket financial discussion points that circulate in my household: 1. RSUs- The ultimate “crystal ball” tech wager. Keep, diversify, sell, save. Given that many of our assets are tied up in stocks, our financial discussions during times of underemployment are often skewed.  Because the tech job market, and the tech stock market work in symphony, it is a risky time to be making wholesale changes to our stock portfolio.  2. 401k- We are fortunate that my wife is still employed, but have made the difficult decision to pause on her 401k contributions. As millennials, this feels like a mortal sin. 3. Childcare- After much deliberation, we forfeited our spot in daycare while I’m not working. We are gambling on the ability to secure another spot in daycare when the time comes. Good daycare is about as cut-throat as the job market these days. 4. Debt-  We are still working through the dredges of my wife’s student loans (disco chorus of aforementioned millennial problems) and have been overpaying on the principal. Since my job loss we are weighing the extra payments against the long term interest rate accrual. 5. Mental health/self care- Given my current state of unemployment, we watch our daily spending very closely. This isn’t revolutionary, but it is still difficult. But, when we are able, when we need it, and when it's the right thing for our hearts, we go to pho! I am curious to hear from the droves of folks who are currently working through unexpected financial downturns.  What sacrifices do you make and what allowances help you keep your chin up? #TalentAcquisition #Recruitment #JobSeeker #Networking #hirethishuman #recruiters #hiringmanagers #humanresources #hr, #jobinterviews #hiringandpromotion #jobalert #nowhiring, #job #gethired #jobopening #jobfair #recruiting #jobopening, #hiring, #joinourteam, #jobs #jobhiring #remotework #jobsearch #jobsearching #jobseekers #workingathome #hire #peopleoperations #greenbannergang #opentowork #laidoff #layoffs2023 #talentacquisitionjobs #talentacquisitionmanager #recruiter #recruiters #hiringmanagers #ceos #staffingandrecruiting #openfornewopportunities #openjobs #ai #robotics #techhiring #recruitment #recruiting #technicalrecruiter #sourcer #sourcingspecialist #technicalsourcer ##newbeginnings #ta #technicaltalent #remote #remotejobs #remoteopportunity #remotejob #aiautomation #autonomousvehicles #layoff #layoffs2023

Losing a job is hard enough emotionally. But when savings run low and bills pile up, unemployment can spur a financial crisis. Your dream role may still be out there, but extending your time out of work has exponential costs. At some point, landing any income-generating job beats holding out for perfect.  Let’s assess some scenarios for a professional previously earning $75,000 annually: If out of work for 13 weeks (over 3 months), that’s $28,750 in lost income so far. Now extra income must be generated to recover that gap. Even returning at the same salary, it would take over a year working 50 weeks to break even from that period of no earnings. And that’s not accounting for taping into savings/loans in the meantime incurring interest costs. What If you find a $65,000 job but cap unemployment at 6 weeks? That’s $11,250 lost...not ideal but less than half the prior scenario. After a year at new pay with 46 working weeks, total earnings would be $69,750.  While $17,500 shy of prior $75k level, being unemployed for just half the time lessens the deficit. And getting back to work swiftly keeps momentum, skills sharp and avoids extended financial strain. The takeaway? While waiting for a truly fulfilling opportunity, the mathematical and emotional costs of delaying income grow substantially over time. No job is perfect, but work breeds more opportunities. Sometimes starting with a survival job to pay bills and adding income again lets you rebuild from a better place. $65k and employed looks brighter than holding out for $75k but draining resources in the interim. Do the math on positions within reach that, even imperfect, stop the bleeding and give stability. Then continue honing your bigger career aspirations from a stronger financial base. The long term dream pursuits will still be waiting for you! For more detail on this and other valuable topics to transform your job search, listen to the Dream Job Equation with Ben Passman. #resume #career #jobSearch