Part 1: Where do I Start?

Everyone who finds themselves in a position of a job loss will be in a different place in their life, you may be a recent college graduate, a mid level manager or even a senior executive…but we all have one thing in common…we are all starting the next chapter of our professional life. With this in mind, it is important to first take care of the “basics” so that we can move forward.

As an educator, I have always been a fan of Abraham Maslow and his Theory of Human Motivation (1943). I am sure that you have seen some version of this theory at some point in your life. It is often depicted as a pyramid consisting of five levels: the lowest level is associated with physiological needs, while the uppermost level is associated with psychological needs, particularly those related to identity and purpose. In his theory Maslow believes that lower level needs must be met and satisfied prior to one having the ability to moving forward to satisfy higher level needs. The higher needs in this hierarchy only come into focus when the lower needs in the pyramid are met.

Maslow's Hierarchy of Needs

I believe that this is a good place to start, and can be used as a guide, when faced with a traumatic life experience like becoming suddenly unemployed.

Think about it this way…

When you were gainfully employed you were most likely meeting your physiological needs (food, housing, etc) and your safety and security needs through the income you were earning. But you were also most likely meeting the needs of love and belonging and self-esteem. Your job also provided you with social connections with other people that provided friendship and a sense of connection and the work you did provided you with self-esteem.

When you lost your job, your stability within this pyramid was significantly disrupted. The best way to get back “on your feet” is to make sure that you begin to build a stable pyramid again as quickly as possible.

So, let’s start with the basics:

Talk with your family. This will most likely be one of the most difficult conversations you will ever have, but you need to have it. Remember that members of your family will take their cues on how to react to this news from you. If you are calm, they will be calm. If you are stressed, they will be stressed. Remember that old commercial “Never let them see you sweat”? This would be a good time to put that into action.

Apply for unemployment benefits. Depending on where you live, this might take awhile to get processed. In most states, this can be done on-line. You might also be able to get an idea of what your benefit might be online.

Get your finances in order. Spend some time assessing your own financial picture. Look at the bills you have due, when, and how much money you have in the bank and in cash. Now look for any money you might be able to tap into if needed, such as savings bonds, children's savings accounts (Putting food on the table and a roof over your head is more important than what you have saved for college, as you can always save when things turn around), whole life insurance policies you can borrow against or cash in, and loans others may owe you. Only consider taking money from your IRA as a LAST resort.

Call ALL your creditors and tell them you have lost your job. Most creditors will be willing to work with you. From suspending payments for a period of time or setting a more reasonable monthly payment. Student loans can be put on deferment until you get another job. The key is to call them them before you get delinquent in your payments. By contacting them early shows good faith on your part with your debtors, and knowing you can skip a few payments will ease the stress on you for now. Below, you will find a link to download a sample phone script you can use to call creditors and a sample letter that you can send to your creditors describing your situation.

Tighten those purse-strings. Take a look at your monthly expenses. If you can do without it…cancel it. This might include cable, lawn service, cleaning help, etc. Try to eliminate as many monthly expenses that you can. Stop eating out, plan your meals, clip coupons, and buy groceries. You will be surprised at how much money you can save by simply cutting a couple of expenses here and there.

Sample Phone Script

Sample Letter to Send Your Creditors

As I stated at the beginning of this article, everyone will find themselves in a different place in their professional career when faced with unemployment. Take care of the basics first so that you will have a firm foundation on which to build upon as you move into the next chapter of your professional life. In part 2 of “Where do I start?”, we will look at getting your ducks in a row to start moving forward with securing your next great career opportunity. Part 2 of this article will be released on February 10, 2010!

Robert Shindell
The Career Doctor
ILostMyJob.com

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