You just got laid off or fired. You are shocked to say the least. You are not alone. It happens to thousands of people each year. What do you need to do to protect your Lost Your Jobfinances now while laying the foundation for a smooth and successful transition to what’s next?

Considering I just got laid off from my corporate day job just two weeks ago I am knee deep in answering this question. What I can say based on my experience thus far is that you definitely need to take action (and in some cases inaction) as soon as practical if you want to mitigate risk and boost the upside of the situation (and there is ALWAYS an upside even if you can’t see it yet).

So, here are the top things you need to do to take care of yourself and your financial life.

1) Don’t Panic or Freak Out

Now that sounds funny as the #1 thing, doesn’t it? Yet, even if you had inkling that layoffs were imminent and even if you are essentially happy about the situation, there is a big emotional component to losing a job. After all, you’ve contributed a lot of time and energy to your employer. Even if you can’t see the upside yet, though, there is ALWAYS a gift in the dark events of our lives.

So, first off you need to take a deep breath and find positive, supportive folks in your life to connect with (usually the first stop is a significant other). Key word is supportive. Steer clear of the people who will drag you down, escalate panic, or project their own fears all over you. They will suck you dry and steer you wrong. That doesn’t mean you can’t love them, just limit the time you spend with them for a short while.

I also encourage you to feel and express your emotions in a healthy way. If you’re angry, find some pillows, a plastic bat, nasty music, and a safe corner of your house and scream, yell, and bat till you let it out. If you’re sad, cry up a storm. Stuffing your feelings will do nothing to help you. In fact, acknowledging and releasing them will allow you to come from a more level-headed and calm place as you make your transition. Let them out in a healthy way and then you can move forward from a clear and positive frame of mind and body.

2) Don’t Burn Bridges

As much as you might like to flip off the boss or company that let you go, resist that urge. Do your best to be professional and congenial. If in doubt say nothing and do nothing. Let’s face it for the most part business decisions are not personal and have nothing to do with who you are; just somebody else’s decision of how they think the world should operate. Even if you hate the person and have no plans of ever working in that joint again, you never know who you might encounter in your future that knows someone who knows someone…. Remember six degrees of separation? Well, there is truth in that and your next boss could be a distant relative or college buddy of the wacko you didn’t like.

3) Read, Review, and Get Your Questions Answered

Whether you receive a severance package or not, a number of things change the minute you are no longer considered an active employee. For some the transition is instant as you get walked offsite that day, not uncommon in the information technology industry. For others the transition can be a few weeks to several months. Either way you need to be clear on exactly how the process works. For instance:

  • When is my last day of work?
  • How will my remaining pay be sent to me?
  • Will I get paid for unused vacation?
  • How will this affect my benefits (ALL my benefits – insurance, 401K’s, disability, bonuses, stock options, gym membership, etc.)?

The list can be long and involved depending on your position within the company, years of service, and a host of other factors. Bottom line is it is YOUR responsibility to read every last piece of paper they give you (even the long, boring legalese), create a list of questions, and then get them answered to your satisfaction. This is your financial life we’re talking about.

4) Take Action

The number of things to do can be overwhelming. I know for me between satisfying remaining work requirements, continuing to work on my business, and have a personal life, I really had no room to put another full time job into my schedule (that full time job being preparing, organizing, and taking appropriate financial actions as a result of my change in employment). However, I know a little hustling now will pay dividends later. For example, I need to replace my long-term disability insurance coverage that will vanish with the job now while I’m still employed and can show an income. Another example is taking care of medical appointments and expenses that can be run through a medical spending account before my separation date. Little things like this can add up to big cash mistakes if you aren’t paying attention. It is here that I’ll add my plug that it pays to have a financial advisor you can trust to help you navigate moments like this.
5) Prepare for the Future

Unless you’re so financially leveraged that you’ll be kicked out of your apartment or foreclosed on your mortgage if you don’t immediately get a new job, take a few breaths and plot your next move with clear intention. Is now the time for a career change? Is this job loss an affirmation that it is time to pursue self-employment full time? How can I make the most of this opportunity for something new? Do some soul searching and see what you really want and how you can use this as a launching pad to make that happen. Even if you love what you do and the industry you’ve worked in, you can seek to find even something better at another company. What do you want that next position to look like?

Once you’re clear on what you want to pursue, it is time to get busy creating your resume (or business plan as the case may be). Again, this is a fine time to enlist the help of a professional. Then it is time to set about finding and landing that job. If self-employment is your next step, get the support you need and deserve. Check out this article as some ideas that might help.

6) Take it All in Stride

Life happens. Keep the job and career thing in perspective. If your entire identity and existence is tied up in your job title or the man-made crises of daily office drama, a job loss can feel devastating. Instead, use it as a wake up call to wake up to the bigger experience of life and see what you’ve been missing. There’s nothing wrong with owning a thriving business or devoting your energies to your career. In fact I want more of that in my life too and if you do something you love that is meaningful to you it can be a wonderful part of your life and your legacy. Just remember, it is only ONE part and not the WHOLE part of the life wheel.