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.