During uncertain times like the COVID-19 pandemic or just a regular down-sizing event, it’s not uncommon to worry that your job is at risk. Rather than let the stress eat you up, here’s how to prepare for a job loss. Many of these steps have to be taking before losing your job, so take action now.

Collect Information to take with you

Information you may want to take with you includes past performance reviews, document templates, contact information, etc. Your company may have policies about what you’re allowed to copy outside of their VPN, so be sure you remain in compliance. This information can be a great reference when preparing for interviews or starting your next job.

Tend to your Professional Network

If you’ve neglected your professional network, now would be a great time to give it some love. Waiting until after a layoff/termination may be too late. Continuously nurture your network so that it’s healthy when you need it.

Hire a Business Coach

A business coach can be a great resource to help you prepare for a potential layoff. They will help you put all of this advice into context and develop a specific plan for you to follow in the days ahead. A few hundred dollars could be the difference between a prolonged period of stress and finding the next great opportunity along your career journey. Look for reputable business and career coaches that offer a free introductory session to ensure they are a good fit for you.

Assess Your Finances

While this is a common suggestion after a job loss, why not get a head start? Knowing how long you can survive financially without a job will either give you peace of mind or, if needed, motivate you to fix your finances.  

I use an app, Personal Capital, to analyze money coming in and money going out.  Mint is another popular app I’ve used in the past. With either app, you’ll be able to link up all of your accounts and track spending into various buckets. It makes it very easy to see how much money you’re spending each month and for what. You can then quickly see exactly how much you need to save and remain financially secure during a job loss.

Reduce Expenses

Whether or not you feel like you have enough money in savings, now is the best time to reduce expenses. Creating extra cushion with your savings will only increase confidence in your financial readiness, and reducing costs will make the same amount of money go farther.  

For most Americans, housing is their most significant expense. If you own a home, investigate refinancing your mortgage to reduce the monthly payment. If you rent, and your lease renewal date is coming up soon, consider moving somewhere that requires a cheaper monthly payment. You won’t be able to do this without having current employment.  

Consider Opening a Line of Credit

Having a line of credit available to you when you need it can be a great thing. This is really only meant to be available as a last resort option, and hopefully, you don’t have to use a single dollar of it ever.   

Imagine this scenario. You finally land a job after months of searching since being let go. The position is excellent and will even pay more than you were making before. But it requires you to move to another state, and you’ve almost depleted your cash funds. Having a few thousand dollars available to borrow as cash, could mean the difference between saying yes to a great opportunity and having to roll the dice waiting for something more local.  

This is another strategy that you can’t complete after a job loss, so it’s worth looking into as an option now.

Update your Resume

We recommend updating your resume at least once a year. But if you’ve let it slip or it’s been a few months already, then take some time and update your resume again. Knowing that you have a solid resume ready to go will reduce your stress.

While you’re at it, update your LinkedIn profile as well. The changes you make might catch the attention of a recruiter before anything happens with your current position. Even if it doesn’t, though, knowing that your LinkedIn presence is up to date is one less thing weighing on your mind.

Find an Outlet for your Stress.

The stress of a job loss doesn’t always begin when you lose your job. It often starts months before. Reading this article was a great first step, but research ways to handle stress more generally. Exercise is a tried and true method, but consider adding meditation or taking up a relaxing hobby.  

Take Action Now

While these are all great ideas to prepare for a looming job loss, waiting to take action only compounds the stress, fear, and worry. Take action now to prepare a job loss, and don’t wait.

Do you feel like you may lose your job? What are you most worried about, and what are you doing to prepare?