It is all very convenient to write as a blogger to invest the dips, and I did this too last week! Lets get real, we are facing a very high chance of recession and job loss soon. Thus surviving job loss is a very real theme for so many of us.
Why talking about surviving job loss and income loss is important, now?
As Germany crossed 10,000 Coronavirus cases this morning, we are heading for a complete shut down.
The fact is that retail shops, travel agents, salespersons, cooks, restaurants, waiters, their suppliers, airports, airlines, ground staff, freelancers, event management companies, movie theaters, arts and many more are at severe risk of losing their jobs. Globally the picture is no different and its already starting to get ugly for some.
We are going to face millions of job losses, crushed busines demand, and misery.
Even if this virus goes away as trillion dollars pump into the market, funding for dying companies, it will take years to recover. The Dow Jones has plumetted 2000 points today(had to change this while writing!) 33% less than all time high a month ago! A MONTH AGO!
All this, within 20 working days!
Surviving job loss: Emergency fund.
Every FI blogger has talked about it. For some of us, this is already too late. If you have already lost your job, income and do not have enough to cover then you must reach out for benefits.
If you are still in your job, fear the reduction of pay or job loss, this is the time to tighten your belt. However, If you are confident to ride through, go read another post.
- Save everything you can, be super frugal, avoid any unnecessary purchases.
- If you can save 6 months of expenses, try 8 months, if you can do 8 months, try 10 months.
- Were you planning a apartment purchase? Delay it.
- If you were planning to get a car, even an old one, delay that!
- Do not invest in the market, stay away and hold cash
Surviving job loss: Arbeitslosgeld
There is no shame in this, you have been paying into the social security for times like these. As things escalate, more people will seek this and there will be delays in handling all the capacity.
Please visit the Arbeitsagentur website (in English too). You must immediately inform them of a job loss as soon as you know have a confirmation from your employer. You can also call at +49 (0)800 4 5555 00
Please make copies of your payslips, bank statement, resume and existing job contract ready. You will need those.
Surviving job loss: Fix your living situation
The next advice is not for all, neither is something I prefer. If push comes to a shove, find a room-mate to share rent, or move in with your family.
There is a moratorium on evacuation in various states, read this!
Surviving job loss: German Governments loan scheme
Over 2.3 million people work as self employed, they are at significant risk. There is a high chance there will be a scheme to help them through a 0% loan or more.
If you are a small business or freelancer, you can get a credit loan from the German Government, you can also get tax breaks and subsidies for loss of business. Please click here to read the official guidelines.