If it happens to you, it may be the first time. It may be a shock. While it's usually true that "things could always be worse," that's not much consolation when you're reeling from the sudden need to shift life and lifestyle gears. It's important to know where you stand, where to turn, and what to do next (other than maybe take that first week to clean, fix, or otherwise improve your home life in the most basic ways, if possible). On Wisebread: Living Large on a Small Budget, we found these solid tips for the newly unemployed. Please add your own tips to the list!
Tell everyone you know you are now unemployed - There is no shame in telling people that you are looking for a job. In fact, the more people you tell the better your chances are in getting a referral. Tell people in your network what kind of job you are seeking and what your skills are, and someone may be able to help you get a new job.
Tighten your belt - When you suddenly become unemployed you may need to adjust your budget a bit and stretch whatever severance you received as much as you can. It could mean that you have to cancel the cable and not go out so much for dinner, but without your former income those small luxuries may prevent you from paying the bigger bills like the rent or the mortgage. If you do not have an adequate emergency fund to tide you through the job search then frugality becomes a necessity.
Stay healthy - When you lose your job your health insurance usually goes with it. That is why staying healthy is extremely important during this period of unemployment. Sometimes health issues can be beyond our control, but we can all try to sleep and eat well and exercise regularly.
Organize the job hunt - You should make finding a new source of income your priority if you need the income to survive. When I was looking for a job I found that keeping a log was very helpful. I would write down the date of my resume submission to certain companies and also dates of interviews and contact information. Organization is very important when you suddenly need to keep appointments in many different places.
Click here to read the full Wisebread article and the addtional tips on their list.
Jonya & Brad's Modern A–Frame 
Quick Cleaning Tip: Keep Baseboards Cleaner With Fabric Softner
Good Food to Share 
The Big Book of Small, Cool Spaces 
Apartment Therapy Presents 
The Eight-Step Home Cure 
Profile Chair by Ma...
15 Essential Building Blocks for Quick Weeknight Meals
Summer Recipe: No-Bake Strawberry Icebox Cake
Comments (31)
"When you lose your job your health insurance usually goes with it."
That's what COBRA is for - to help you continue your work-sponsored group insurance plan.
If you can afford the payments and/or are in a situation where you need to pay for monthly medications - it's worth every dime.
http://en.wikipedia.org/wiki/COBRA_(insurance)
When you lose your job, the cost of COBRA is nearly impossible to afford.
Ditto on COBRA being nearly impossible to afford.
Immigrate to Canada.
Wake up in the morning. This may sound simple, but after a while it gets easy to sleep in. Waking up bright and early gives you enough time to job hunt, not to mention ward off any depression that may set it if you're sleeping until noon!
COBRA was a rip-off when I left my job in 2006. It was close to twice the amount than just getting my own private insurance. The reason is that they kept you at the same level as what your employer had. In my case I had very nice govt. full insurance, when basic coverage would have been fine for a few months until I found another job.
COBRA needs to be reformed.
BTW, I'm serious about suggesting Canada. In addition to having nationalized health insurance and the world's most stable banking system at the moment, Canada is actively seeking educated, skilled workers who speak at least one of the official languages. It's MUCH easier to apply for permanent residence in Canada than it is in the U.S. Check it out if you don't mind snow:
http://www.cic.gc.ca/
Do not immigrate to Canada.
The new stimulus package has made COBRA more affordable.
"Employees who are laid off between 09/01/08 and 12/31/09 will be eligible for a 65% federal subsidy for their COBRA premiums."
http://www.ins.state.ny.us/cobra/cobra_federal.htm
Um, unless you were already considering moving, why would someone shell out a couple thousand dollars to move if they were unemployed? I was unemployed last year for 2 months, and one of the things I did was get a library card. I could get dvds and books for free, and I even took a free knitting class through the library.
Be open to changing careers.
having been on COBRA, multiple times in my life, here is what i've found: its insanely expensive and my unemployment checks hardly cover the cost. since i'm a healthy 20-something, i've switched over to an individual "catastrophic" insurance plan. it doesn't cover prescriptions or doctors visits (which is fine for a couple of months), but it would save my ass in case of an emergency. about $50/month, as long as you're a non-smoker, not pregnant, etc.
I'm not working at the mo, and found its definitely better to get an individual health plan that is much more affordable than COBRA. And ShamWOW! - the advice to 'wake up' is so true. Start sleeping in and you'll get depressed, lethargic and demotivated. With a tight budget, it's been fun to find new recipes featuring low cost ingredients, and have people over to dinner rather than go out. Cooking is a really nice way to spend some of that newfound free time!
I think my point about COBRA is that if someone has a pre-existing condition, it's far better to pay the $400-some-odd dollars a month than pay even more for the monthly prescription medications/treatments that you need - because going off meds while you're under the added stress of unemployment isn't an option and getting individual insurance coverage for a pre-existing condition will be virtually impossible...
...and as I've learned, some jobs don't allow new employees coverage for weeks or even months after the start date - so in this case, it's better to have the coverage.
Of of the healthcare topic: It's always a good idea to review and update your resume at least every year while you're employed - and when you do get laid off, one of the first places you should hit are the employment and temp agencies in your area that specialize in your career field: Any money coming in is better than none at all.
^^ just a quick add-on to the COBRA topic. It's harder than you may think to qualify for private health insurance (even a high-deductible "catastrophic" policy), especially if you are no longer 20-something years old.
When I left my job in 2007, I thought it would be a no-brainer. Little did I know they comb through your records looking for any blip in order to disqualify you. A small skin discoloration last summer which turned out nothing did me in. I was grateful to have COBRA. When COBRA ended, I had to go on the state CHIP program which is even more expensive than COBRA - supposedly I can reapply for private insurance in about 6 months. It requires adjustments in other areas of my life, but it's something I cannot afford to gamble with.
I agree...off topic. We come to AT to ESCAPE the bleakness. This is inappropriate for a site on home decorating.
don't move to canada! there are enough canadians looking for jobs as it is, we don't need any competition. you can come for a visit though:)
Well, Lisa (of Montreal) we do have more stable banking institutions and plus, we have employment insurance. The story is also different for big cities, as you will see in Montreal, Toronto and Ottawa... Canada is indeed looking for skilled workers, but with the increasing job losses, in a year we might well be in the same spot the US is now. All is not perfect in 'le plus meilleur pays du monde'!
To go back to the main topic, my SO ( 2000 other workers) was laid off by a big IT company (Philippines started looking way better than Canada when the $Ca went up). Another tip I would have is to get out of the house every day (hopefully for job enterviews) or just for a walk; it's really easy to get bored when you are stock at home all day long. Another suggestion is that since you do have a bit more time (not every day, but a couple hours a week perhaps) to volunteer. It will look good on your resume, it will get you out, it will hopefully improve your community.
Talking about 'home decorating' my SO did take the time to do some minor renos (nothing expensive but things that needed to be done around the apartment) to do them.
Basicaly, do your job search seriously and intensivly and then you can take time to make improvement in your home, and in your community. Don't give up!
ahh typos ! sorry!
But Marie-Eve, how else are we going to convince AT to start an AT Canada? :-)
Best of luck to everyone unemployed. I've been there. I kept Cobra despite the expense, because I had a number of chronic conditions. Every month I'd look at my collection of prescriptions, and give thanks that I could still keep going. I felt as long as my prescriptions were on my bathroom shelf, I would survive somehow. And I did.
I just renewed my COBRA coverage at well over $400 a month. Tried to get coverage through an individual plan and couldn't (I have a pre-existing condition -- and mind, even allergies qualify as such). I'm lucky in that I have enough of my own funds to be able to pay, but God help those who don't. Health care in the U.S. sucks. Really, really bad.
I was recently 'in between jobs' when i moved back to my native country. I made the decision to spend a little money to make money, so I ponied up for a couple of decent outfits from Zara for not too much $$, and also, I paid to host a website for my work credentials.
Waking up in the morning wasn't too hard for me since I have a dog. But the advice to keep to a schedule is invaluable.
I also signed up for the free account on Backpack to keep track of my job hunting. I would list who I sent a resume to, if it was in response to an ad (then hyperlink the ad), did they respond etc. So I knew not to double send resumes.
And because I was moving countries, I made lists to help me with my move as well.
On of the advantages of being unemployed for a couple of weeks before I moved was that I could take my dog out for quality park time. I also caught some freebies at museums, met up with friends for a last hurrah, etc.
On the note of COBRA: I know this because I researched health insurance for my previous employer. If you do have a pre-existing condition, and you lose employment and are not covered by health insurance for a period of I believe a yr, then when you do apply for health insurance again, you might not be covered because you a) have a pre-existing condition; and b) you were not under insurance for the period of a yr. So even if you TRIED to get insurance, you'll not be covered.
Health insurance is a real racket in the US - needs a major overhaul... The only way you can protect yourself (and to what degree is arguable...) is to keep yourself covered continually. If you are covered, and then a health condition pops up during your coverage, they have to cover you for that condition. Technically. Which isn't always the case, since insurance companies are masters at skirting red tape and undercutting their clients...
Anyway, I hope everyone unemployed finds some way out of the mess fast... On a happy note, I moved to a new country, and in the space of a month, I found an affordable apartment AND a great job, all while my dog was stuck in her 30day quarantine. We're both settled into our new routine and so far, knock on wood, happy as clams.
When I was unemployed, I was diagnosed with cancer.
God, I am so grateful that we left the U.S. and moved to Canada (where my step-father-to-be was living) when I was 8!
Having cancer and being unemployed is bad enough -- due to surgeries and chemo, I was unable to work for a whole year, and so we suffered a significant financial hit because of it -- but having to worry about medical bills on top of it is beyond what someone can be expected to bear.
I was on $50 a pill anti-nausea medication that we could not have afforded had we not had coverage. Heck, there is no way we could have afforded the $500,000 tab for my surgery (it was quite a tricky specialized surgery) at an equivalent hospital in the U.S. (the Cleveland Clinic or Sloan Kettering). In fact, I may never have been diagnosed had I been unemployed and living in the U.S., as I would probably have been reluctant to go see a doctor if I had to pay out of pocket.
With the economic implosion, healthcare reform is becoming more urgent every day. This is probably the best opportunity Americans will ever have to reform their health care system -- half-measures (and by that I mean anything less than the single government-insurer model that we have in Canada, with cost-control measures regulating what public and private health care providers can charge) will not be sufficient. For example, the Massachusetts reform is already demonstrating significant weaknesses. And I am afraid that Obama is not proposing a sufficiently bold reform. Yes, the backlash from the insurance industry will be fierce, but it has to be done.
Lobbying for the right kind of health care reform could be a great community project for someone who is unemployed... if enough people can get behind universal single-payer coverage, it can become a reality.
(As an aside, I am a policy analyst who over the years has done quite a lot of research into different health care systems, and have personally experienced several of them. The Canadian model is the best. That doesn't mean it cannot or should not be improved upon, but just that the basic underpinnings are sound, and the system fair.)
After my uncle died in hospital in Canada, we went to thank the nurses for the care they'd given him (my dad and cousin had been there while he way dying). It was the nicest hospital I've ever been in; super cool design with Arne Jacobsen furniture in the public areas and a great staff.
I had a health care plan that was specific to my state which made it much cheaper. Also find coupons on line for your medications, most will have them. I do that even now that I am employed.
I would also find activities that didn't cost money, I would thrift shop since most of the time that would take a lot of time but I wouldn't find much or spend much.
Also criagslist items you haven't used in a while so you can make some money in the mean time.
I also heard of many in the city finding people through friends to walk dogs for cheaper then the real expensive agencies during the day. Just during your drought and it will get you out of the house!
Having had cancer, health care is definitely my biggest concern with regard to losing my job. I would have to pay for COBRA. There's no way around it. I would never qualify for private insurance.
Nationalized health care really is a matter of basic civilization and human decency. The fact that we don't have it shows that we are still a young, "cowboy" country.
If Obama accomplished nothing other than affordable, quality healthcare during his presidency, I would consider him a wild success.
I agree with all the walkers! It's key to surviving unemployment. It got me out of the house and away from checking my inbox and cell phone every two minutes thinking they weren't working.
living in a larger city, I made sure to take extra time planning the route, and even stuff to see (ie free museums, obscure landmarks, parks, etc) and tried to make myself see them. There was no turning around until I had done them all. Plus, if you stumble on to a little spontaneous wandering , it takes your mind off of the situation.
Best of luck to all!
to clarify: sudden unemployment has a lot to do with one's home life (not saying it relates directly to home decorating, but AT is about much more than decor). Thanks, All!
Good point Lisa (Montreal) ! ;)
When I am in between jobs, which is happening for the second time now, I go for small things left undone around the house, things that were continuously put off like a visit to a friend or things I missed like week-day shopping. These are amsll loads off my shoulders and small pick-me-ups.
I also try to polish my skills like computer programs or language (by that I don't mean paying for a course. On-line tutorials, or picking up a foreign-language book off my bookcase make a difference.) I also go for walks around the city for fresh ideas, and add them to my portfolio, which is an opportunity to refresh the portfolio itself.
It is possible to use the down time productively.