Getting the dreaded pink slip, which is not the most desirable situation, is not the worst thing that can happen to you. Yes, you'll have to figure out where your next paycheck will come from. But you can use this downtime to consider a career change, as well as establish good financial habits.
If you've recently joined the ranks of the unemployed and want to stay productive, here are five ways to survive your layoff:
1. Stockpile Cash
Try to save at least 3-6 months of living expenses in an accessible account, advises ConsumerReports.org. If you're the breadwinner in your family, try to save at least nine months of cash.
And if you haven't been laid off yet, but think that your job may be next, cut back on spending. For example, do not use your credit cards to purchase any small items -- only big-ticket purchases if they're necessary.
What's more, try to get your family involved in saving; this way, everyone feels like they're pitching in. For more tips on spending and budgeting, visit the Military.com Money section.
2. Update Your Resume
Take this time to review your resume carefully and update it with your past work experience. Additionally, if you're thinking of applying to another job, try to weed out any work experience that isn't relevant to the position or takes up too much space on the page.
It may also be a good idea to write different resumes for the types of jobs you're applying for, according to Network World. This way, the resume will be tailored to the specific type of work you're looking for.
3. File for Unemployment Compensation
Unemployment insurance can help you with financial issues, such as paying your bills on time. The sooner you apply for this compensation, the less of a financial headache a layoff will be.
4. Talk to the Employer
Try to negotiate severance pay, outplacement services and medical insurance options with your employer. According to Consumer Reports, now is the time to ask your former employer how much income you'll receive and for how long and, as stated above, file for unemployment insurance.
5. Don't Touch Your 401(k)
If you withdraw funds from your employer-provided retirement account, you'll incur a 10% penalty fee, and you may have to pay an income tax if you're not 59½ years of age. Roll over the funds from your 401(k) into an individual retirement account (IRA) and consider selling any depreciating nonessential assets.
Extra tip: Search job boards such as those on Military.com or use the social networking sites. Your connections may be able to point you toward other career opportunities.
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