"I Lost My Job....Now What?"
Amidst all the Coronavirus memes, toilet paper rantings, and day-in-day-out inconveniences of the self-quarantine, there are a lot of people struggling financially. Millions upon millions of Americans are losing their jobs. Regardless of what you think about the seriousness of COVID-19, the media’s portrayal of it, or our government’ handling of it, the reality is people are hurting. Some medically, some financially, and some both.
A few weeks ago, as we were just starting to experience the front end of this thing, I wrote a piece called “Prepare, Hope.” In it, I laid out five things all of us need to do in order to navigate these rough waters, financially speaking. In case you don’t want to read it, here’s the cliff notes version: leave your investments alone, make sure you have a healthy emergency fund, don’t make any major financial decisions, make sure everyone in your household is covered by health insurance, and don’t stop your generosity.
Those five pieces of advice are just as relevant today as they were a few weeks ago when I first wrote about them. However, some of you are losing incomes and/or losing jobs. If that’s you, the five pieces of advice above simply aren’t good enough. You need more! So if you’re asking “I lost my job….now what?”, here are some practical next steps to give yourself an opportunity to bridge the gap between this negative situation and your brighter tomorrow:
Get rid of the guilt
Losing a job can be utterly demoralizing. It makes us feel like a failure and strips us of a piece of our identity. We walk around through life feeling like we’re making the right decisions and have some sense of security, until it’s all stripped from us. Please don’t beat yourself up over this, unless you successfully predicted a guy in China would eat a bat that would cause a global pandemic, essentially destroying the travel, tourism, entertainment, and food/beverage industries overnight, all the while reducing demand for most products and services to zero while the world self-quarantines. If you saw all that coming, then yes you should be beating yourself up. If you didn’t, then you’re human just like the rest of us. As I often say, we can only control what we can control. Unfortunately, we can’t control the gut-wrenching decisions our employers have to make. Hear me out: this isn’t your fault! I know people who were absolutely crushing it in their careers two weeks ago…..and now don’t have a job. If you feel guilt, or regret, or blame for your Coronavirus-induced job loss, please work through it and get to a place where you acknowledge there’s nothing you could have done differently.
File for Unemployment
“Unemployment” feels like a four-letter word to a lot of people. It feels like a hand-out. It feels like cheating. Please hear me: it’s not! This is what the program was designed for. This is why employers pay a tax specifically for this. It’s meant to protect people who lose their job. Don’t think of it as a hand-out, but rather a hand-up. We need to humble ourselves to do what’s best for our family, and for most of us that means immediately filing for unemployment as soon as we lose our job. A lot of people are asking the question “do I even qualify for unemployment?” Here’s my advice: just apply! So many people are sharing false information, half-baked knowledge, and bad assumptions. The best way to know if you qualify for unemployment is to apply for unemployment. Each industry and each job has its own unique set of circumstances. Also consider there is new legislation being discussed and negotiated all the time. Just apply! The worst they can do is tell you “no.” If you lose your income, immediately file for unemployment and figure out what benefits you are eligible to receive.
Contact your landlord or lender
If you’ve lost a meaningful amount of income as a result of this pandemic, reach out to your landlord (if you rent) or your lender (if you own) and ask for relief. Most lenders are showing a lot of grace and mercy to their borrowers. They don’t want to kick you out of your house any more than you want to be kicked out. Call them and just be honest. Be humble and don’t go into the conversation expecting anything. Be grateful and courteous. A common outcome for these situations is lenders waiving 2-3 months of payments, and simply tacking them onto the end of the term. So they aren’t giving you a free pass…..just some temporary relief to get your financial life back on track.
Landlords are more hit-and-miss, as they too are typically subject to their lender’s decisions. But similar to lenders, landlords don’t want to evict you any more than you want to be evicted. Contact them as soon as possible, be humble and honest with them, and ask for some grace. Landlords, I implore you to step up and do what you can! This is your chance to play the role of the hero. Be the hero today and watch it come back around to you ten-fold after all this mess clears up. Show mercy and give whatever grace you can afford to financially stomach. We’re all in this together.
Contact your Federal student loan servicer
If you have Federal student loans and you lose income, immediately reach out to the company who services your loan (i.e. who you make your payments to) and ask for relief. All Federal student loan borrowers have the right to stop making payments through September 30th, 2020. If you haven’t lost any income, I don’t recommend you take this step…..it’s only delaying your eventual payoff (which I hope is soon!). However, if you’ve lost a meaningful amount of income and you’re feeling the financial stress, make the call and get these payment suspended through September. My tip of the cap goes to our Federal government for making this one happen! Thank you!
Cut back your budget
If you’ve lost income, it’s time to go on red-alert lockdown. Any spending that’s not absolutely necessary needs to stop. Food, transportation, and shelter. Everything else needs to go…..not forever, but for the season. You need to cut things back as far as you can to ease the pressure as much as possible. Hopefully you have an emergency fund available, in which case lowering your expenses will allow the emergency fund to last longer. Let’s say your monthly budget is $5,000 and your basic needs account for $3,000 of it. Let’s also say you have an emergency fund of $10,000. If you keep the same lifestyle, your emergency fund is enough to cover 2 months of living expenses. If you cut back to just the basic needs, your emergency fund can last you a bit more than 3 months. That extra month could make all the difference in the world!
Find near-term income
I know I’m probably playing the role of Captain Obvious here, but if we lose our job and we we don’t have a robust emergency fund to bridge the gap for several months, we need to quickly replace the lost income. Unemployment is a band-aid, not a cure. The cure is finding income that fills in the gap. Now this doesn’t need to be the job of your dreams. It just needs to be income. There’s a time and a place to find the job of your dreams, but right now the goal is to make it through all this pandemic mess. We need to have the utmost humility in this season of life. Grocery stores are hiring, big-box stores are hiring, delivery services are hiring. Start asking around in your social circles. Someone who knows someone in your circle is hiring. If you take the approach of “there are no jobs”, then you’re right…..there will be no jobs for you. However, if you take a proactive and positive approach, you will absolutely find work.
Re-assess what’s most important
Many of us have been working traditional jobs we don’t really enjoy because the world tells us we need something “secure”, and “safe”, and “reliable.” Whether we believe it or not, there’s no such thing as security. No job is secure, no job is safe, and no job is reliable. We’re all replaceable. I used to have a very “important”, high-profile job. I was extremely valuable to the organization and helped make them a lot of money. You know what happened when I left? They replaced me in two days and didn’t miss a beat. We are all replaceable. So here’s a question: if we truly understand no job is “secure”, or “safe”, or “reliable”, why are we making career decisions based around this false belief? If we finally come to terms with the fact there’s no such thing as security, that should free us up to pursue what we’re truly meant to do. What a liberating feeling!!
During this season of life, I beg you to explore what you’re truly meant to do in this life. You’ve already been forced out of your old career, so why not use this as an opportunity to reinvent yourself? We still need to find short-term income to get us through this mess, but we can also start to develop skills, relationships, and opportunities to propel ourselves into the next season of life so we can live it with purpose, with passion, and with meaning. I hope some of you join me in this pursuit, as there is nothing better. Let’s get through the scary, and move into the awesome. As with all terrible things, this too shall pass. The only question is what you’ll be doing after the clouds dissipate and the rough waters smooth out. For many of you, this new-found curse of unemployment will ultimately be the turning point in life. Many of you will look back and say it was the best thing to ever happen to you. I pray that for each and every one of you.
God bless each and every one of you. I’m sorry for what you’re going through, but also believe your future is better than your past. If there’s anything I can do to help, please don’t hesitate to reach out. We’re in this together!!!