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Dealing with Losing Your Job!

I was reading a post on Get Rich Slowly the other day about a reader who lost his job and was looking for advice. Since I have experienced unemployment for a few months in 2006, here are some tips to minimize the hit on the loss of income.

1. Apply for Employment Insurance immediately

  • This may seem obvious, but the sooner the better as it usually takes a couple of months to receive your first payment.

2. Work out a budget and prioritize your bills.

  • There are some bills that NEED to be paid (ie. rent/mortgage), it goes without saying that these need to be paid before even thinking about discretionary spending.

3. Reduce your Expenses

  • Scale back your RRSP contributions b/c you may end up in a lower tax bracket in the current year anyways.
  • If you are making “top-up” mortgage payments, reduce the payments to the minimum required.
  • Find ways to reduce your overall expenses like dining out, gasoline, groceries, cable, telephone.

4. Update your Resume and Stay Focused on the job that you want!

  • Keep focus on the new job that you want and not on what you don’t have. This will help keep your head up during rough periods.
  • Attend job fairs in the area and make a good first impression.

Links:

How Spousal RRSPs Work

RRSP Deadline and Info 

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FT About the author: FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.

{ 8 comments… add one }
  • The Financial Blogger May 22, 2007, 8:22 am

    Good tips! I would also like to mention that people must make their minimum payment on their credit cards. It is definitely not a way to reduce their expenses! Unfortunately, too many people think it is a good way to avoid payments for a while…

  • Investoid May 22, 2007, 7:30 pm

    Here’s an anticipatory tip – ensure you have your emergency fund fully funded. Some people say that 6 months living expenses is a good rule of thumb. I’d say that the amount should depend on your job prospects and local economy.

  • canabiz June 3, 2007, 10:32 pm

    Be active on the job front. What i mean is if there are some jobs that don’t relate to what you study in school or what you really want but you think that you are qualified for and can get it, by all means go for it

    The longer you stay unemployed, the harder it becomes, financially, emotionally and perhaps physically. You may become depressed or doubt yourself. Take the opportunities that present themselves now, they may not be your best choice but who knows if they will open more doors later on.

  • Dividendgrowth February 7, 2008, 1:14 pm

    Good tips MDJ. I would say take any job ( by any I mean any in your field, do not start washing dishes) which could help you pay the bills. Try survey your network of professional contacts and your family and friends to determine if there is an opening somewhere. Update your resume for the job you are specifically applying to – do not send out generic resumes.

  • Merchant Cash Advance September 3, 2008, 4:39 pm

    Investoid, I agree with you.

    Losing/quitting a job isn’t always a bad thing and if you keep yourself in constant training you can most certainly find a better job the next time.

  • Colourful Money May 30, 2009, 2:55 am

    Put your resume on Workopolis and Monster. Headhunters will search you and give you a shout.

    There’s also the option of second career and you can get a free tuition with living expenses if you qualify.

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