Pero I can do it too

Your Guide To Recovering From Job Loss: 8 Steps To Bounce Back

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Life has this weird way of testing us to see if we can still be resilient by throwing us curve balls. As if, once again, we have to pass a test. Excuse me, dear life? We have passed several tests, so we do not need another one!

 

On a more serious note, losing a job can feel like getting hit by a sudden storm, leaving you with a lot of uncertainties and doubt. Guess what? You have landed a new job, and you are ready to feel like yourself again and gain freedom and trust.

 

So, let’s bounce back, not just in your professional life but in your financial life as well.

 

1. Assess the damage

Now that you have secured a new job, it is time to assess the aftermath. Take a deep breath, gather your bank statements, and evaluate the extent of the damage caused by the period of unemployment. It will be helpful to know when payments are due and how much by the time you resume payments.

 

2. Create a realistic budget

Subtract all your expenses, debt, and savings goals from your new income. Refrain from being hopeful; you need your budget to be as realistic as possible. Don’t try to inflate your lifestyle from the beginning because you can take advantage of this time to get ahead financially.

 

Allow yourself a budget for fun, reflecting your spending habits. You will ensure that your bounce-back plan is sustainable.

 

3. Prioritize debt repayment plan

You may have debt collectors calling you nonstop. And this can take a toll on your mental health. First thing, make a list of all the debt that you owe, the amounts, and due dates. Prioritize this to remove the stress and pressure.

 

Choose the right strategy for you: snowball or avalanche method. Establishing a debt repayment plan will provide a sense of accomplishment and financial relief.

 

4. Rebuild your emergency fund

During your job loss, you probably drained your emergency fund. Rebuilding this savings should be a top priority.

 

Allocate an amount for savings in your budget until you have hit a minimum of 3 months to 6 months of living expenses. This savings will help you again during unforeseen financial challenges.

 

5. Explore additional income streams

Once you start getting the hang of the new job, consider diversifying your income streams through side hustles, freelance work, or a business. Have different options to increase income to reach your financial goals faster and make more. Explore your skills and passions to find what works for you that aligns with your interests.

 

6. Review and adjust your financial goals

A job loss can change your financial trajectory and bring down your morale. Remember that before your job loss, you had short-term and long-term goals. It is time to rekindle and review those goals.

 

Be flexible and adjust to reflect your new income and expenses. Setting realistic and achievable goals is critical to staying motivated.

 

7. Invest in retirement and long-term savings

Now that you are feeling more stable and safe with money after doing the steps above, it is time to start thinking about the future you and your financial security. Start by contributing to your employer’s 401K because, most of the time, the employer matches your contribution to a certain percentage. Do not leave money on the table. Starting early and being consistent with your contributions can significantly impact your retirement.

 

Slowly increase your 3 or 6 months savings to a year in a High Yield Savings account. A HYSA will help pay you interest each month to have your money sitting there! It is a great way to start making money passively.

 

8. Build a support network

Financial recovery does not have to be a lonely journey. Find support groups or a coach, create your group, or share your story. Sharing the challenges and learning from other’s experiences can provide valuable insights and motivation to stay on track.

 

Your journey to recover from a job loss is a testament to your strength and resilience.

 

Every step you take from here on out is a celebratory milestone! As you build your security, keep your spirits high because if you have done it before, you can do it again. If you have never done it before, you are on the right track to creating the security, peace of mind, and stability you deserve.

 

When we work together:

 

  • I help you take steps weekly, even when it feels hard
  • I help you budget to create security without taking away the fun in your life
  • I help you plan for unforeseen financial challenges to decrease the stress and anxiety around money

 

If this resonates with you, I invite you to work with me! I want to help you plan and get ahead now that you landed this new job opportunity. It is the perfect time to make money moves and relieve your stress around money. I want you to experience peace, joy, and freedom. Book a sales call.

 

I cannot wait to be part of your journey!

 

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ABOUT AUTHOR
Orlenda Cortez

Welcome to my corner on the internet! I’m obsessed with using money as a tool because it led me to pay off $30K in consumer debt in a year and a half, helped me save $20K in nine months to have my dream wedding in Costa Rica and is helping me build the life I never saw my family experience. Now I want to help others do the same!

Orlenda Cortez
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