Here's how you can navigate your finances during a layoff in consulting.

Upon receiving a layoff notice, promptly review your severance package details, including pay for unused vacation, benefits continuation, and lump sum payments. Understand each element and its timing to form your financial strategy. Consulting with a financial advisor or attorney is advisable to ensure fairness and clarify tax implications. This preparation will support your financial stability and aid in planning your next career move efficiently.

When you are laid off, quickly review your severance package to make sure you have all the information you need, including any unused vacation time, continued benefits, and tenure-based lump amounts. These are crucial concepts for your transitional financial plan. Seek advice from lawyers or financial consultants to make sure everything is fair and understand the tax consequences. Protect your financial future in case of unpredictability.

Never let your employer get the better of your generosity. They say we are a family and everything but everything goes down the trash the day they feel like they don't need you. So be aware of your rights, keep a check on severance package, terms mentioned in your appointment letter and don't let anybody fool you into believing that leaving things on the right note is the best way. Let's face it, if they are laying you off, there are no good terms and right note left to consider, it's all just a facade.

Listen - severance will not save you. It’s a device to mitigate damage and generosity depends on how ethical is your firm and their financial condition. When market is bad and company lost a lot money they will stick to mandatory minimum but not give you anything more. If company downsize but is not in chaos and fear driven like in mass market drops, they may act more reasonably. Worst scenario are small and medium companies that depends on single source of income. You should read signs and leave long before they collapse. Big companies are difficult but their size mandates at least behave according to law. Smaller can get much easier with employee abuse. Also some firms keep temporary workers pretending they are perm this is biggest risk.

Let go of your ego. You don't need to keep up an act because, everyone know what you're going through. Never fool yourself into putting up an act and keeping appearances. Every professional in the current environment will go through this situation at some point in their lives. If you plan for the worst and live frugally, you'll be surprised how quickly you recover. The best part is the memory of the experience sticks with you and you'll learn to value money. Spending money thoughtlessly isn't what makes an impression, saving it and treating it with respect is what will take you far.

Cutting costs is essential for maintaining financial stability during difficult times. Thoroughly examine your spending plan and reduce unnecessary expenses such as eating out or subscription services. Set priorities, and if you need temporary vacation, consider renegotiating terms with creditors. Let's handle unpredictability with resilience and sound financial management.

Using your emergency money as a safety net during uncertain times might help. Aim for a fund that can withstand interruptions such as layoffs and cover three to six months' worth of living expenditures. If you don't have one, set aside liquid assets or severance compensation to build this vital buffer. Prioritising financial readiness will help face problems with stability and confidence.

Diversify your sources of income by looking into consulting, part-time work, and freelancing. Make money out of your interests or unused stuff. These tactics offer chances for professional exploration in addition to supporting financial security.

Elevate your job search with proactive networking. Engage former colleagues, industry peers, and friends to signal your availability. Attend events, join groups, and optimize your LinkedIn presence for heightened visibility. Networking not only uncovers job prospects but also offers invaluable support and guidance in career transitions.

Seize the opportunity to strategically upskill and enhance your career prospects. Identify sought-after skills and invest in online courses or certifications to bolster your expertise. This commitment to professional development not only enhances your marketability but also instills confidence as you navigate the job market landscape.

My simpleton way of dealing with it - how many months of living expenses does every invoice cover? I love the uncertainty and lack of safety nets in consulting - which forces us to come to terms with a real form of freedom, but it cannot be reckless. Especially when others depend on me. So when it got to a point where between invoicing and lifestyle, there was 3 years of living expenses saved up, I never worried about it again. The way I see it, if 6 or even 12 months tops is not enough to come up with an idea or way forward, let alone 3 years, then the problem is elsewhere. Maybe it's not for me.

When you face layoff, in any job, it is best to have a previously established plan to deal with it and an emergency fund to do so. Additionally, I recommend: 1. Evaluate all the economic and legal conditions of your dismissal and in case of irregularities demand compliance with the agreements 2. Don't let fear paralyze you and start looking for work immediately, supported by your network of contacts and an update of your CV. 3. If you can apply for unemployment benefits, do so immediately to have a source of income, even if it is temporary and partial. 4. Do an analysis of essential and non-essential expenses, and reduce them immediately. 5. Evaluate alternative sources of income, such as part-time jobs, freelance jobs, etc.