Dealing with a Layoff

I've been reading a lot of articles lately about how the American economy is heading for a recession. It's pretty depressing. Last Thursday, a previous employer of both myself and Mrs. Blubba laid off a bunch of people. We spent the day taking calls and emails with friends and former colleagues, checking in to see if anyone we knew had gotten the axe. Luckily, all our friends made it through. It's a tough time to be doing the work that Mrs. Blubba and I do, which is a lot of bank-related financial type-stuff (and if I told you exactly what I do in detail, it would make you cry tears of boredom).

I've experienced being downsized before. It is a terrible feeling and my heart goes out to all those people who've recently lost their job. Which is why I thought it might be a good time to make a list of things to do once you've been laid off.

1. Deal With Your Emotions First. Losing your job is a lot like a break-up. A lot of emotions are going on (mine were shock, disappointment and bed-wetting terror at being able to make mortgage payments on my just-purchased home). Take time, as much as possible, to get your balance emotionally. After all, you don't want to start searching for a new employer while still oozing those freshly laid off vibes. Not attractive at all.

2. Make A Plan. One benefit of getting laid off is that you now have the time, and incentive, to figure out what your next step will be. This could be as simple as refreshing your resume and pounding the pavement for interviews. Or, it could be time to drastically change what you're doing, maybe even look into a career change. One thing that helped me during my layoff was filling out a five-year plan chart (I love five-year plans - it's the Chinese commie in me). The benefit of actually writing something down is that it forces you to actually think about and organize your goals. By putting something down on paper, it helps you to focus on what you want and how you're going to get there. As a former boss once told me, "Inertia is a bitch," and if you're not constantly trying to better and improve yourself (whether after a layoff, at your current job, or in your day-to-day life), then you are more likely than not going to end up in a rut. A simple five-year plan is here.

3. Stop Paying Off Debt. Not completely, of course, but only pay the minimum you need to get by. Don't keep trying to aggressively fund investments or pay anything down more than you have to. At this point, you should be focusing on your debts with "Turtle Intensity" which is the opposite of Dave Ramsey's Gazelle Intensity. Now is the time to shut yourself down in your shell, and only stick your head out to pay the bare minimum on your bills.

4. Be as Cheap as You Can. Until you get a job, or your financial situation otherwise stabilizes, now is the time to quit the daily lattes, cut the cable and start eating in.

5. Ask for Help. It's surprising to me, but I hear that a lot of people try to hide the fact that they have been laid off. It reminds me of those TV sitcoms where the Dad of the show gets fired, but keeps pretending to go to work each day. In the sitcoms, that works out. In real life, not so much. I understand that there is a lot of shame that comes with a layoff, I've felt it. But rather than hiding the fact. you need to tell people and ask for help. You'll be surprised by how supportive people can be - your family, your friends, even your former employer (which leads to my next point) can all help you out. Even in a down market, positions can open and the right contact can get you in the door.

6. Don't Burn Bridges. It's tempting, when getting fired, to lay loose with obscenities and to bad mouth your boss, your company, and everything related to it. Take a deep breath, and then (NO MATTER WHAT YOU REALLY THINK) thank your boss and colleagues for the time working with them. Don't hesitate to ask your boss for a referral and even for information on other situations that they might be familiar with. You might be surprised by the help you receive. In my field, I often work across the table with former colleagues, and my job would be immeasurably harder if there was still some resentment.

These are my quick hits on what one should do. Does anyone else have any helpful suggestions?