You have either lost your job or you just found out that you are not going to have one.  Now What?

The mortgage is still due.  The credit card companies still want their money.  The kids need money for school.  How long will it be before I find another job.  How much money is in the savings account and in the IRA and should I use it.  What is the first thing I should do?

STOP! Before you do anything else, you have to understand that the job market has changed.  It is no longer enough to have the skills or to be the best at something because there are so many people out of work and hunting for a new job that those things don't matter.  You think you're the best.  So do a hundred other people that used to be employed doing the same thing you used to do.  And they are just as hungry, just as scared and just as motivated as you are.

So before you move on to another page or website or look at another help wanted ad, understand this.  Your next job may be taken away by somebody who believes and understands what I just said, follows the steps outlined below and becomes just a little bit better at marketing themselves than you.

The information and resources here are the best we could find.  Use them and win or let somebody else use them and lose.  The choice is yours. 

The Job Loss Prescription was created to help you through this time in your life.  The goal is to make your journey through this difficult time a little easier by showing you how to create a roadmap to the other side of the unemployment forest.

When things don’t turn out the way you plan, you have to plan a way to turn things around.

Step 1 - Focus on You

1. Stop and take a deep breath.

     So now what do you do?  This is uncharted territory for most people.  How do I pay the bills?  How do I keep my house?  How do I make ends meet until I get another job?  Fear and stress can slow the ability of the most level-headed of us to think clearly about their financial situation and the proper steps to take.  So stop, take a deep breath and think about what has happened to you.  At this point in time, it’s normal to feel sad, depressed or even angry.  The key is to get past these things and work to make your situation better.  Most of the monsters, demons and dire things that you think may happen probably won’t and even if they do, with the proper planning their impact can be minimized. (more)

2. Stay Positive

     One of the major steps to staying positive is to stay busy and to remember that you are not alone in this situation.  Family and friends are there ready to help, but you must lead the way.  Sitting at home in the dark will not work.  Develop a schedule of events and activities, which you can participate in. (more)

3. Stay Professional

     Don't give in to anger, frustration, depression or despair.  It will only hurt you and hinder attempts to keep your job or make progress toward finding a new job.  Don’t burn down any bridges that you may need to re-cross later. (more)

4. Keep Fit

     Nothing is more important than your health - especially when times are tough. By making exercise a regular part of your routine, you'll not only tame stress and stay fit, it can also bring structure to your day.  Exercise can provide a way to work off your frustration, anger and irritability. (more)

5. Change Your Overall Mindset

     The world has changed and you have to change with it.  While there are a number of people without jobs that will get an unsolicited phone call from someone looking to hire them, the majority of people won’t.  The days of recruiters calling with offers galore are gone.  You can’t afford to sit back and wait for the phone to ring. (more)

6. Get Away

     Sometimes, putting a little distance between you and your immediate situation can help.  If you can, schedule a mini-retreat.  Take a few days off to think, regroup, relax evaluate and plan.  This simple move can help you to gain a better perspective on your position and help you to make the best moves for you. (more)

7.  Vent Your Anger

     Sometimes it just helps to get it all out.  But be selective who you vent to.  Find a close friend, a relative or just commit your thoughts to paper, but remember, make certain you know where your vented thoughts and feelings will go.  Just getting it out can be a real stress reliever and help to clear your mind. (more)

8.  Sooth Your Soul

     Your psyche and self-esteem have taken a hit, so think about some ways in which you can minimize the damage.  Some people find meditation and yoga relaxing; others might benefit from seeing a professional therapist or counselor.

9.  Nix Negative Thoughts

     It will be hard to do in the beginning, but you have to stay focused and stay positive.  You have taken a big blow to your self-esteem and personal worth.  But you have to work through this.  You do have value.  If not for the last employer, you will have it for the next. (more)

Step 2 – Focus on Your Finances

10.  Evaluate Your Financial Position

     One of the first things you'll want to do is rein in your expenses.  When times are good, most people don't think about how they spend money.  Take a realistic look at your family's income and overall expenses.  Make a budget.  You have to become aware and focus on how you spend and save your money. (more)

11.  Keep Your Insurance Coverage Intact

     Consider your health-care insurance options, such as getting on your spouse's plan, which likely is your least costly option, or applying to the Consolidated Omnibus Budget Reconciliation Act (COBRA) program, which will allow for at least 18 months of coverage at lower, group rates.  Also, make sure your life-insurance coverage is adequate to meet your family's needs.

12.  Apply for Unemployment Benefits

     There's no stigma in receiving these payments.  Companies are required to pay into the fund.  But remember, your unemployment benefits are taxable and you may wish to have taxes on these payments deducted automatically. (more)

13.  Reduce Your Systematic Savings Plans

     Many people contribute money on a regular basis to investments such as mutual funds.  But if you're laid off and money is tight, consider reducing or suspending these payments.

14.  Consider a Home Equity Loan

     If you own your home and are still employed, you may want to apply for a home-equity loan.  You may need the extra money when you get laid off, and it will be difficult to get a loan without a job. (more)

15.  Decide Which Bills To Pay First

     Falling behind on your mortgage will lead to late penalties and could cost you your home, so this payment should be first on your list.  You need heat and lights, so utility bills come next.  Since you need transportation to find a job, keep up your car payments.

16.  Reduce Credit Card Interest Rates

      Call your credit-card company and explain your situation in a courteous manner.  Assure the representative that you're actively seeking a new job.  If you have a good payment history, be sure to mention it.  Ask to have your interest charges waived for a few months or at least reduced.  If you've incurred late fees, request that they be waived.  This goes for anyone else that you owe money to. (more)

17.  Answer the Phone and Open Your Mail

     Even if you can’t make the payment, communicate with the people you own money to.  Yes, they will yell and scream and threaten but its all part of their plan to rattle you so you will send them your money just to stop them from harassing you.  Don’t fall for it.  Politely tell them what you can and will do and then stick to your plan.

18.  Avoid Major Purchases

     This is no time to buy that new car or DVD player.  If you're already in debt, particularly credit card debt, you may want to consolidate your loans into a single monthly payment with a lower interest rate.  If you own a home, consider a low-interest home-equity loan.

19.  Don’t Raid Your Retirement Savings

     It's often tempting when you lose a job to withdraw money from your 401(k) or retirement plan.  Don't do it.  Distributions from qualified retirement plans before age 59 1/2 generally are subject to income taxes and a 10% penalty.  More importantly, the money you take out won't have the chance to grow and help provide for a secure retirement.

Step 3 - Focus on Your Past Working

 Situation 

20.  Understand Severance

     If you are offered severance package, ask questions and make certain that you understand all your benefits and options.  In some circumstances you may be able to negotiate the details of your severance offer.  If that is the case, make sure you get everything in writing. (more)

21.  Check Out Restrictions

     Before interviewing for a new job, make sure you are not bound by a non-compete agreement or restrictive covenant that you signed while employed.

22.  Can you work with your employer as an outside consultant.

     Ask who will be doing the job that you are leaving.  There is the possibility that the company could retain you as a consultant to perform the same work as you have been doing.  Since they would not be paying you benefits, this might be a higher paying situation for you and a low cost alternative to them and the start of a new career for you.

23.  Get References

     References are a great way to communicate your assets to prospective employers.  As soon as you can, try to obtain letters of reference from your recent supervisor and any appropriate colleagues.  Better yet, draft one for yourself and ask for signatures. (more)

24.  Keep Records

     Even if you think they are not relevant, keep copies of all documents relating to your employment, especially those that you sign as part of the layoff.  It is better to have a document and not need it than to need a document and not find it.  Examples include pension and insurance benefits, savings plans, training program certificates, evaluations, and awards.

 25.  Be Prepared for Legal issues

     Sometimes, being laid off is more complicated than just a case of corporate downsizing.  There may be legal implications such as discrimination (age or otherwise).  If you think you have a legal case against your employer, make a list of all documents that may help to prove your case.  And do it now while the memories are fresh in your mind. 

Step Four – Focus On Your Skills

 26.  Identify Your Skills

     A laundry list of certifications is not a description of your skills.  Potential employers want to know what you can do for them, and before you sit down to tell them, it's worth making a list.  How? Write down the major projects you have worked on.  List all the tasks, both technical and interpersonal, that went into doing that work.  Now list the skills you used to complete those tasks, and don't stint on the soft stuff.  In technology, many an employer will pay a premium for a worker who has actually demonstrated – in a practical setting -- his or her talents as a team player, a self-directed worker or a good communicator.

27.  Stay Current in Your Field

     It’s important to keep your technical skills as current as possible.  You will be competing for that next job against people whose skills are up to date.  It is important to invest in yourself and keep your skills current.

Step Five – Focus on Your Future

28.  Get an Email Address

     It has become a preferred method of communication for those who handle hiring at companies.  Make it easy for an employer to get in touch with you. (more)

29.  Stay Legal

     If you're working here on an H-1B immigrant work visa and you get laid off, you are Not only are you out of work and you are out of status.  You have to act immediately.  Work on finding a new job is your first priority.  But you also have to find out if there are visa options that apply to you because of your circumstances.

30.  Get Your Network Working

     If you’ve done networking over the years, you may be in good shape.  If you’ve never done it before, now is the time to learn.  Even with want ads, Monster.com, Google and Craig’s List, having someone recommend you to a potential employer, because of your networking efforts, can put you at the top of the list for a new job. (more)

 31.  Polish Your Resume

     Look on line for the latest books and articles on resume and cover letter writing.  Review books at the library or bookstore.  Share your materials with a career counselor for a review and critique.  Seek out counseling programs that will assist you with composing your resume. (more)

32.  Learn to Market Yourself

     Promote yourself in the best light.  Develop that 30 second commercial and a 3 minute elevator speech.  Work on becoming comfortable talking about yourself to strangers.  Write a script identifying a problem you found the solution you took and the results that occurred.  Conduct information interviews with professionals in the field. (more)

Step Six – Your Next Job

 33.  Find Out Who to Contact for Help

     There are state , local and Federal programs that may help you but you have to be proactive in searching them out.  Start with any information your company may have but then expand your search to your state and local unemployment offices. 

 34.  Check Your Eligibility for Special Programs

     If you lose your job or get your work hours or wages reduced because imports increased or your work moved to another country, you may be eligible for help from the U.S. Trade Adjustment Assistance (TAA) program.  Check with your human resources department and your local unemployment office to see if there are special programs that you may qualify for.

35.  Take Advantage of Available Programs

     A number of governmental programs exist to help you in the event of a layoff -- take advantage of them.  You will most likely be eligible for unemployment insurance.  In some states, you may also be eligible for training, loans or unemployment compensation while you set up your own business.

 36.  Find a Part Time Job

     You will be able to stretch your savings if you have additional income.  Consider a part-time job while you are looking for something permanent.  If you can’t find temporary or part-time work in your field, your hobbies and other interests may offer possibilities for income.  Make certain that any job you take allows you the time to manage your search for a full time job.

37.  Start Your Own Business

     40% of those who lose their jobs think about starting their own business.  It can be a great way to take control of your destiny but be aware that there are many pitfalls involved in the process.  (more)

38.  Think About Who You Want to Work For

     Make a list of the companies you would love to work.  Find out everything you can about them.  Use multiple ways to contact these companies, such as posting your resume on their website, attending job fairs, and by giving informational interviews via phone or in person.  Contact these companies even when aren't hiring so that when they are hiring, your information will already be in their system. 

39.  Know What a Prospective Employer Wants

     Find out as much as you can about the company that you are interested in.  Look at the company's website, do a web search on the company name to find articles and press releases.  In an interview situation your stock will go up if you know about the company, its history and its culture. 

40.  Polish Your Interviewing Skills

     Always be on time, dress professionally and treat everyone you encounter with respect.  Don’t slouch, mumble or ramble.  And most important of all, listen to the interviewer and answer the questions you are asked. (more)