How do I prepare now for a layoff I hope doesn’t come?

Layoffs in tech, media, and even some white-collar sectors are shaking everyone’s confidence.

You might even be one of the many quietly looking for side income options.

If you’re someone who is always worried about what would happen if I lost my job, this email is for you.

Here’s what I’m going to discuss:

1. What can you do today that is going to leave you bulletproof if you lose your job.

2. What to do if you do lose your job.

“Dan, what do you know about layoffs??”

Well…

I’ve been laid off twice.

The first time was the week I convinced Katey, my wife, to move to Austin so we could be an official couple (talk about making a good first impression).

The second time was right at the beginning of COVID.

Let me tell you.

Getting laid off is scary. But both of those experiences ended up being the best thing that ever happened to me.

How to prepare for a layoff

You have no idea when income will be coming in again.

What life will throw at you along the way.

Or how much you’ll be making when you start working again.

And that’s what makes it scary.

So to make it less scary, you want to buy yourself time.

In order of operations:

1) Make a Budget - Are you living within your means? Something I’ve always tried to do is live off 70% of my income. I understand this might not be possible today for you. But following a budget is how you inch closer to that number month over month. This prepares you if you do get laid off. Instead of needing to replace 100% of your income, you only need to replace 70%. I’m not going to go deep here, but if you’re not already using it, I love Monarch Money

2) Get out of debt - The less debt you have, the less money you’re burning when you get laid off (burn rate - know yours!). And if you’re burning less money, you’ve now bought yourself more time if anything happens. This is one of the many reasons I tell people to get out of debt before investing.

3) Build an Emergency Fund - A good rule of thumb is 3-6 months of expenses. Which will be much easier if you keep expenses low and get rid of your debt. The reason people suggest 3-6 months is that’s how long it takes on average to find a new job. The last thing you want to do is pay off all your debt, get laid off and max out your credit card.

What to do if you lose your job

I’ll be honest, I did this all wrong the first time. And it was stressful.

But the second time around, I was able to make things work, not be stressed, and I didn’t even have an emergency fund at the time.

1st Step - Take a breath. You’re not going to be able to solve anything in the first day, so just try to process what happened and remember: You will get through this.

2nd Step - Apply for Unemployment. I had too much pride the first time I got laid off, and I ended up regretting not getting it. Even an additional $300 per week is going to help you extend how long you can avoid going into debt while finding a job.

3rd Step - Find a part-time gig - You may think, why not apply for a full-time job first? You’ll find a part-time gig much faster and again, that extra income is going to make a huge difference. There are tons of part-time jobs that pay $18-$22/hr. 15 hours a week would be another $300 per week. Now you’re talking $2,400 per month - some of you might be able to avoid your emergency fund.

4th step - LinkedIn + Hunter.io - You’re not going to click to apply. Please, don’t ever click to apply. I repeat, PLEASE DON’T USE CLICK TO APPLY. I’m not sure what industry you’re in, but you’re going to put your sales hat on. Luckily, I’m in sales, so I’m going to help you out. Pay for LinkedIn Premium - I don’t have any sponsorship or anything with them, but it’s $30/mo. You’re only going to use it for 3-6 months, remember?

If you find companies that are hiring you’re going to do 3 things:

• Reach out to the CEO (smaller company) or the executive for your department.

• Reach out to any alumni from your school, even if they aren’t in your department

• Find hiring managers (or people that look like hiring managers)

You’re going to use Hunter.io to learn what their email structure is, which will help you guess their email.

Then you’re going to send them an email:

“Hey [First Name]

Personal Trigger that shows you did your research

I noticed that {company} was hiring for {role} and wanted to reach out. I’m sure you’re team has a lot of demand but based on my experience at {most recent company} where I did {copy and paste a responsibility from the job listing} I think I’d be a great fit.

I’ve found that with the ability to “Click and Apply” it’s hard for qualified candidates to stand out. So here I am trying to stand out :)

Could you help broker an intro to the individual hiring for this position?

Thanks,”

Short, sweet, to the point.

You’re going to send that to 20 companies. And you will get interviews.

Then it’s on you, I don’t have tips on how to interview for your industry :)