Catastrophe to Opportunity

How you can manage a potential layoff or loss in income, creating an opportunity to follow your DREAMS

Given the recent trends in our world (declining GDP, economic uncertainty), and even some latest news in certain sectors, employee layoffs are becoming top of mind to many people. While getting laid off certainly can be traumatic, keep in mind that your life and your value are so much greater than the work you do. Just because you have lost your current job, it doesn't mean your life is over or you can’t still reach your dreams. Yes, it is not pleasant, especially if you have worked at that company for a long time and enjoyed the job, however it may be an opportunity for you to pursue your dreams! Turn lemons into lemonade!

Here are 5 steps you can take when you have been, or if you are facing, a layoff.

1)     BREATHE – DO NOT RUSH ANY DECISION

2)     Look at your Short-term financial situation – 0-60d

3)     Forecast your Medium-term financial situation (60-180d)

4)     Reflect on “What you want your life to look like”  - seek advice/help if needed

5)     Land your dream job or career!

Step 1: BREATHE – DO NOT RUSH ANY DECISION

This is a universal tip I give to almost every client, and in any crisis situation – BREATHE! When it comes to making decisions while we are in an emotional state, we will not make good decisions. Basic physiology when we are “threatened”, causes our amygdala (fight or flight response in our brain) to respond. When we experience amygdala “hijack”, our logical thinking starts to suffer (get “hijacked”). Simply by taking a minute and BREATHING, we start to reverse this physiological response.

So, while getting fired certainly is traumatic – remember that your life is not over, and you DO NOT have to act right away. Take a day or two and just decompress. Talk to friends, family, legal experts if you feel you have a case/issue with the dismissal (or if you are being put under duress to sign something), but mostly, just take it easy. A few days are not going to change anything significant over the entire course of your life. Take time for yourself, recharge, and then tackle any obstacle!

Step 2: Look at your Short-term Financial Situation (<60d)

 “The best defence is a good offence”. You may be wondering how this line applies here, but this is the analogy I have come up with on how you can use an emergency fund to protect yourself from a potential loss in employment. I always recommend a healthy emergency fund of 3 to 6 months worth of expenses (6 months in the current climate is recommended). By putting this money away when you are earning regular income, and not putting it into unhealthy/risky vehicles, and also where you can access it quickly if needed (“liquid”), then when the unexpected happens, you won’t have to worry about how you will pay your bills. This principle also applies to any unexpected event (major house repair, car accident/breakdown etc.), and is why an emergency fund should be looked at as INSURANCE, not SAVINGS.

So, if you have have been laid off, and have an emergency fund, you will know you have at least 3-6 months. If you do not have this fund, then look at what money you do have, if there are any liquid savings, and how much you have if you do not have any income. Ensure you keep the bills paid on your house and “four walls” (food, utilities, shelter, transportation).

Step 3: Forecast your Medium Term Financial Situation (60-180d)

After making sure you are set in the short-term, you need to start looking at the medium term – 3 to 6 months. Realistically, if you are fired in a company restructuring, you should receive a serverance payout (consult with a legal professional if you have not, or even if you are wondering if the offer is fair).  This severance in all likelihood should cover you for 6 months, but if for whatever reason it hasn’t materialized, then think about what options you have available and how you could secure additional income. Employment Benefits (EI in Canada), or Unemployment Benefits (UI in the United States of America), may be a good option for you to help maintain your finances. You can also look at “side-hustles” or part-time work. Ideally though, you will be covered by a healthy emergency fund, and/or replacement income.

Step 4: Reflect on “What do you want your life to look like”

Once you have taken a look at your finances and ensure your’s and your families short and medium term needs are met, it time to have FUN! This is where you can move from the shock of getting laid off, and shift to the opportunity of having a clean slate, and the freedom to pursue the CAREER YOU WANT! The important step here, is to ensure that you shift your mindset to OPPORTUNITY, and away from CATASTROPHE – get past the shock and disappointment of what is behind you and look at all the possibilities that could be ahead.

You may want to consult with a career coach or expert, perhaps completing one or more assessments (ask me about how my brain profile helped me to solidify my choice to move to financial coaching!). Then follow your gut, and act.

My friend and fellow colleague Wendy Packard (www.facebook.com/Speakingupwithwendybairdpackard), recommended the following website as a potential tool for determining your next move: https://www.mynextmove.org/explore/ip. To put it simply, think about your passion – what is it you absolutely love doing, and how can you shift to make it into a reality. You can also ask yourself “What will I regret the most if I don’t give it a try?”. This doesn’t mean you should be reckless and pursue any opportunity without a plan in place, it just means that you shouldn’t get hung up on the short-term job loss and feel like you have to stay with the “status quo”, when it could be the greatest opportunity to pursue your dream job!

Step 5: Make it Happen – Land that Dream job!

Based on the work you do in Step 4, set your sights on the job/career you want, and then go for it! Stop at nothing until you get it! Note that this doesn’t mean you will land it right away – perhaps you have to take some courses, or build some experience in a different area first.  The key however, is to not stop – keep going until you get that dream job! On your pursuit of that dream job/career, here are some steps you can take:

1)     Build a Master Resume - the use it to tailor a resume for each of the jobs you want to apply for

2)     Start applying, networking and talking to those in the field you want to be in

3)     Crush the interview!

4)     Negotiate the salary like a BOSS – know your worth, and do NOT sell yourself short!

5)     Believe in YOURSELF! You may not get there right away, but believe in yourself and keep at it! Hard work and perseverance will always pay off.

If you would like more information on the above process, come on out to the HOPE Session on Thursday, December 8th at 12pm ET. I will have Wendy Packard on, and we will go through the above process in more depth.  You will also have the opportunity to ask any questions you may have – financial or career-related. If you happen to miss that session, and are reading this after December 8th, then you can watch the recording on my youtube channel ( www.youtube.com/channel/UCi5r9T_MmGsrejhL0otOaiw - video will also be embedded at the top of this post!).

To register for the HOPE session, click the banner at the top of my website (www.hopefinancialsolutions.ca) and you will be redirected to the Eventbrite registration page. Alternatively, you can always book a free consultation with me at www.hopefinancialsolutions.ca if you’d like to chat. Free, no obligation consultation, and you can get a chance to get some pointers in a low risk environment.

Remember, with hard work and perseverance, you can turn any catastrophe into an OPPORTUNITY. So set your mind on what you want, talk to those who can help you, and then GO GET IT.

You CAN do it!

EDUCATE. MOTIVATE. INNOVATE.

In YOUR Corner.

Tyler Wain

Financial Coach and Founder

Hope Financial Solutions