You're Fired!

Carefully review your severance package. Make sure you know what you are entitled to receive. Is there a possibility of renegotiating the terms? Will you receive compensation for unused PTO, medical benefit continuation, etc.? Speak with your family and take into consideration that your spouse and children (should you have them) will have valid concerns of their own during this time. You lose more than your salary when you lose your job — you lose your “status” and daily routine. You may also lose your sense of identity and self-confidence.

Loss of Income

Paul was terrified about the loss of income. He was living paycheck-to-paycheck since he purchased his new home. He also didn't know if a new job would pay as well and have similar benefits to the one he just lost.

One of the first things to do after losing your job is to apply for unemployment compensation. Even if you are not sure you will receive the benefit, depending on the reason for termination, you should apply immediately. Most firms will not deny unemployment benefits, unless terminated for cause, and this additional income will be helpful during your job search. Some states allow you to apply online, which is more convenient than physically going to the unemployment office.

Take an inventory of your expenses. Separate the needs from the wants and start to cut back. Do you really need all the extra cable channels? Can you reduce your grocery bill? You may be amazed at how much you can cut out of your monthly budget.

In many cases, your medical and dental benefits will extend through the end of the month. Take advantage of this time and schedule necessary appointments. If possible, try not to withdraw funds from your 401(k). In addition to being taxed on the gains, you may be assessed a 10% penalty.

Loss of Identity

It's natural, but not necessarily healthy, to tie your identity to your job. One of the first things we typically ask when meeting someone new is “What do you do?” or “Where do you work?” When you lose your job, identity can have a major impact on your mental health, regardless of your financial situation.

Keep in mind that we are all so much more than the work we do. We are family, friends, neighbors and volunteers. You define whom you are — not your job, your former supervisor or the firm's decision to let you go. Volunteering to help others during this time is a great way to remind yourself how fortunate you are and how much you contribute. Remind yourself that you are highly qualified — just temporarily without work.

Loss of Confidence

Paul spent several weeks obsessing about his situation. Why me? What did I do wrong? What could I have done differently? Who will hire me now? He was angry and depressed. He started to question his competence, which is completely normal.

When you lose a job, your confidence can take a big hit. It's important to regain it back as quickly as possible. During unemployment, reach out to a good friend, career coach or mental health professional. Recall all the achievements you have made during your career or even during your lifetime. Write these things down so you can refer to the list when you need a boost.

Regroup and Rebound

Don't wait before starting your next job search. Taking some time to wallow is common, but the longer you wait, you put yourself at risk of feeling like a “victim” or becoming depressed. Paul chose to work with a career coach who helped him establish deadlines and goals for his job search.

Networking is key to finding your next position. Compile a list of contacts and start making calls. Schedule time to meet others for coffee or lunch. Let people know you are looking for a new job. There is nothing to be embarrassed about. It's likely that you know others whom have been in similar situations. Likely, you connected them with others who could lead them closer to a new position.

Move Forward

Be prepared — it may take months to land your next position. Whether you quickly secure a new job, accept a part-time position or join the gig economy until something surfaces, you need to keep moving forward. Most people lose jobs at some point in their career. Learn from the experience.

After several months of searching, Paul landed a position as Marketing Manager with another law firm. He received a higher salary and stronger benefit package. Losing a job is not the end of the world and for some — it is just the beginning of a great new adventure.

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Brenda L. Thompson is a certified coach and works with professionals experiencing career transitions. Currently, she serves as firm administrator for Gadsden Schneider & Woodward in Wayne, PA.