Getting Laid Off - Finances Rule
November 19th, 2007This cast reveals the most important concept a laid off manager must know: Finances Rule. it is the first in a series designed to help both prepare for and navigate through a layoff.
Most of us fear being laid off. It’s a good fear to have, frankly - being laid off is a difficult passage for anyone. The fear of being re-employed, the fear of loss of status, the loss of income, risk to one’s family. All good reasons to be scared.
And yet, those who have been laid off express very different emotions than those of us who have not. When those who have been laid off are asked about it, it becomes clear why. It’s not JUST that they’ve, “been through it once and I made it.” It’s what they THEN say: “I’m ready this time.”
And that’s why you’re scared: you’re not ready.
This cast tells you how to start getting ready. And, our entire series about layoffs will be geared to helping everyone get prepared, and helping those that DO get laid off make it through successfully.
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November 20th, 2007 at 10:20 pm
Mark & Mike For President,
Can you imagine what would happen to the current presidential campaign if one of the candidates told everyone in the US to begin saving 6 months of living expenses in case of an emergency. It would turn the US economy upside down.
Having been through the job search process more times then I care to remember, I would have to say that this was the one thing I did that took a lot of pressure off my search. I have been calculating my household finances for at least 10 years now whether I have a job or not.
I was interviewing for a job recently, and was asked what was my experience in forecasting operating budgets. My answer was that including my current position, I have always calculated my personal finances every year. The manager looked at me strange and said “really”. I told him that I always knew my personal cash flow levels, and what my fiscal needs were six months out. I concluded with “If I can’t manage my money, how can I manage yours”.
Folks include every expense you can think of when forecasting your personal finances, every property tax, utility, child expenses for birhtday’s and holidays, and especially COBRA payments for 18 months!
Your freedom depends on it!
Alexander Hamilton, “A power over a man’s support is a power over his will.”
November 21st, 2007 at 1:38 am
JHBChina-
The old joke about the Presidency is that anyone who really wants the job proves therefore that they are not qualified to do it! We like it HERE.
Mark
November 21st, 2007 at 1:37 pm
Mike and Mark,
Thanks for the podcast. Very relevant to the fluctuating economies all over the world these days. I like your say on the comfortable situation we are in may change despite working in the best industry, company etc. 6 months for this kind of layoff (with 3 months covered for resignation at any time) usually stretches people for 3 extra months of saving is the way to look in to it.
Once again you have touched areas not ventured by many so called management gurus.
Keep up the great work.
Regards
Karthik
Bangalore, India.
November 21st, 2007 at 7:22 pm
Hi Mike and Mark,
Great cast. Been there - laid off with less than two months salary in the bank. Luckily had offers from my network within a few weeks, but the “oh shit” realization about cash flow became clear on the drive home. Totally unprepared, but as you said in the cast an important lesson learned.
My rule is now to have 6 months gross salary in the bank. Simpler than figuring out my projected outgoings for the next six months. By having 6 months *gross* means that if push-comes-to-shove we can stretch it out to 9-12 months. This means that the first two weeks after a lay off will be reserved for enjoying family, and developing a positive attitude for the next important job of finding an income source (a job).
If you’re caught having to update your resume (yes, listened to those casts) and you’re in an emotional sour mood then the results are going to look poor. And most likely that version of your resume will be the one that is sent to the first wave of companies that you’d want to work for. Obviously, keep your resume up to date and failing that know you have the time to be in a positive mood before modifying it. Come to think of it, writing a good cover letter will be pretty tough if you don’t have time to complete the grievance process and be positive about what you can offer to the prospective employer.
Note that in many countries (e.g. Europe) a lay off will come with 3+ month’s termination package. I was lulled by this European security blanket and transposed this to the States when I moved here, which was a huge mistake. However, if a European company shuts down then the termination package might not materialize. Many social countries have social security to help the jobless survive but the monetary levels are set to put food on the table, not pay a large first or second mortgage, country club dues, children’s activities fees, etc.
Regards,
Colin
November 22nd, 2007 at 2:10 pm
Manager Tools does it again: Getting Laid Off - Finances Rule…
This week’s episode cuts through the BS straight to the core of the issue in Mike and Mark’s typical direct style: Whether you get laid off or terminated, the state of your finances are what determine how well you are able to handle the situation.
M…