There is no denying that 2020 has been an unusual and difficult year. Unfortunately, too many people have lost their jobs (or been furloughed) as a result of the COVID virus. This resource was created to help those in between jobs navigate this uncomfortable season of life.
Here are a few suggestions we hope will provide comfort, confidence, and clarity during this transition period:
1. Budget, Budget, Budget
Yes, we are using the “B” word. It is human nature to stop using your budget when the money is rolling in every month. Once the paychecks stop, it is very important to determine essential expenses vs. other expenses which can be temporarily cut or reduced.
2. Stick To A Schedule
Humans are creatures of habit. We need structure and purpose. It can be very easy to stop your routine when you are in between jobs. However, a routine during this season is still very important. Allocate a certain amount of time each day towards finding another job. Take care of yourself physically and mentally by getting exercise and eating healthy. You cannot understate the importance of getting out of bed every morning, getting dressed and having a checklist of items that need to be done.
3. Consolidate Retirement Savings
Use this as an opportunity to organize your financial life and consolidate your investment accounts to promote efficiency and potentially reduce the number of income tax documents that are generated each year. Do you have a few old 401(k)’s held at different firms? Use this as an opportunity to review your investment strategy in light of your changed circumstances. This may involve reducing your allocation to stocks in order to have greater liquid reserves.
4. Create a Live Well Plan
Our #1 recommendation is to create a holistic financial plan to help you determine how much money you really NEED from your new job and how long you NEED to work. With proper assistance, this task is not as difficult as it seems. This is an opportune time to put a comprehensive financial and investment plan in place to help answer these difficult questions. Also, use this time and opportunity to review your estate plans, beneficiary designations, and insurance coverages.
5. Don’t Act Desperate
You do not need to apply to every job that is available. You should start your search with a very narrow target of what you desire to do in a new role. A “shotgun approach” where you apply for any/all jobs can come across as desperate to companies or recruiters.
6. Consider Hiring A Recruiter
While the “good” recruiters typically charge a fee to review your resume and set up interviews, this can prove to be an invaluable asset. Some companies rely solely on recruiting agencies and using a recruiter is the only way to get your foot in the door.
7. Network
Use this as an opportunity to set up breakfasts, lunches, coffee, or phone calls/Zoom meetings to catch-up with old colleagues. Ask questions and listen to their stories. People love to talk about their situation and circumstances. You need to get the word out in a positive manner while controlling the narrative.
8. Avoid Major Purchases
This is not the time to buy a new car or get that new 65-inch OLEG TV you have been wanting. Remember that the credit card company is not your friend.
9. Take Advantage of Available Programs
A number of government programs are available to help you in the event of furlough/layoff – take advantage of them. This year the unemployment benefit has temporarily been increased due the global pandemic.
Have questions about consolidating your retirement accounts? Want to create a Live Well Plan?
Please give us a call. We would be honored to have a conversation with you and we are here to help.
About The Author
Randy Price serves as a Partner and an Executive Managing Director for The Price Group of Steward Partners. He resides in Houston with his wife, Lindy, and the family golden retriever. Lindy and Randy are recent empty nesters as their five children have all moved out of the house. Over the past 30+ years, Randy has helped families find comfort, confidence, and clarity regarding their wealth and their legacy. Randy firmly believes that everyone needs a wealth coach!