Being Laid Off: The unthinkable happened

I hear everyday how the economy is getting better and because the GDP has officially reached positive territory we've moved out of the Great Recession. This is great news unless you were just laid off. And I was just laid off.

After years of hard work and putting my wife through lonely late nights and weekends while I bartended, I finally started my accounting career. And in a field that is supposed to be recession proof, there was no worries about me being laid off. So we purchased a house, had central air and a brand new garage door installed, and did a small kitchen remodel.

And then I get laid off for lack of work.

So many thoughts immediately run through my head, but one of the loudest is screaming, "Is my house going to get foreclosed upon after only one mortgage payment!?". After crunching the numbers we will be able to survive.

Only hours after being laid off I started contacting members of my network and received two solid leads. If one of these two positions turns into a job, I might actually turn on a profit on this stretch of unemployment. That's because I was paid all my vacation time as well as severance until the end of the month (vacation time actually covers the first half of July). So if I am lucky enough to start working before then, I'll end up making money (but I'll be happy just to get a job!).

Should my unemployment continue beyond July 15, the financial cutbacks would have to officially begin. Even with the emergency fund we have, I would probably have to put both of my private student loans into forbearance, which means the interest would keep accruing and I would have the option of paying it off each month or capitalizing it. This decision and whether or not to pay it off is a topic for another day.

At this point, I am extremely optimistic of my chances of landing a job before months end so I'll leave you with this thought: No one is safe from cutbacks or layoffs so everyone needs a six month emergency fund in case the unthinkable happens to you. In times of deep recession it should even be 9-12 months. Each month represents total monthly expenses without having to cutback on your accustomed lifestyle. It's never too early to start saving for an emergency, whether unemployment, medical, or natural disaster, that most of us will find ourselves in at some time in our lives.