Managing finances after a layoff and during a job search

(A quick note: I know that the ongoing uncertainty around the coronavirus pandemic is on the minds of all job seekers. I will do my best to keep you up to date on what you need to know about the changing job market during this time. I’ll sometimes publish special editions of the newsletter, but you can find additional coverage by following me here.)

Most Americans worry about money at least some of the time, according to a recent Gallup survey. About a third of them worry “all” or “most” of the time. The ongoing financial uncertainty related to the coronavirus pandemic certainly doesn’t help ease those concerns.

While many people also don’t like to talk about their finances, Suze Orman has spent decades trying to change that with her appearances, show, books, columns, podcasts and more. In fact, she’s celebrating her 10th New York Times Best Seller — The Ultimate Retirement Guide For 50+.

I recently spoke with Orman about managing finances while job seeking — whether you’re currently employed or were let go from your position. She also had advice for people who encounter employer concerns about their finances.

Try to search from a position of power

While people often look for work to increase their income, Orman told me that you should do everything you can to get their finances in order before starting your search.

“Even before you go to look for a job, keep your expenses really, really low,” she said. “The less you need a job, the more powerful you feel and the more confident you feel when you go into interviews.”

Interviewers can sense when you don’t feel powerful, she said. “Power attracts people and people control money.”

“When you walk in and you’re in debt and you don’t have the money to pay the bills, you’re powerless. When you’re powerless, you repel people and people control money.”

If you’re thinking of leaving a job to look for a better position, Orman suggests that you not only get out of debt but that you create an eight-month emergency fund. “That means you have to do everything and anything you can to get out of that situation that you got in.”

To do that, she said you need to get yourself into the mindset of saving money. “When people feel miserable about their job, that’s when they spend the most money.” They use their feelings toward their job to justify treats for themselves, for example.

Orman challenged me to take a 21-day spending challenge, which I plan to embark on once life returns to normal after the pandemic. I’ll report back with those results.

What if you’re suddenly laid off?

While we all want to take the time to get our finances in order, life sometimes has other plans. You may be suddenly laid off even if you just started to save and pay off your debts, for example.

“This is the only time you let credit cards come into this,” said Orman, who added that this is also a reason to keep a credit card with no balance on hand.

That credit card can then be used to pay for items like gas, groceries and utilities. “Unemployment checks should be able to get them through with their rent and credit cards,” she said.

While credit card debt may normally make a job seeker feel powerless, Orman said that shouldn’t be the case in this scenario. “You don’t feel so bad because you put needs on your credit card,” she said. “It has a different effect on you.” Those bad feelings enter the picture when you start using credit cards to buy unnecessary items.

Then, once you land a job, you can start paying off the credit card to bring your debt back down to zero.

Explaining your finances to employers

As we discussed in a past edition of #GetHired, background checks are often part of the job seeking process. Those checks may include your credit history — depending on the position.

Orman suggests being upfront with recruiters and hiring managers if this becomes an issue. “Rather than hiding that and being ashamed of who you are and your financial failures, lay it out on the table with your boss.”

You should explain that you got yourself into a bad financial situation and that you want to be honest with him or her. “The money that I don’t have does not define who I am.”

“If you tell them, they’re going to love how honest you are with them,” she said.

What are your best personal financial tips for job seekers? Join the conversation.

? The follow-up:

The coronavirus is justifiably on the minds of everyone, including job seekers. We discussed how the pandemic could and would affect your job search in two editions of #GetHired last week. In the first edition about the pandemic, we broadly discussed what you should do during the outbreak. SHRM’s Johnny C. Taylor, Jr. told us that you should continue on with your job search despite the uncertainty. Other people who continue their job search may land the job that was right for you if you continued. Here’s what people are saying about Taylor’s advice. In the second edition, we discussed best practices for video interviews. Until the pandemic wanes, job seekers will be encountering more and more video interviews. Sarah Johnston, who is the founder of Briefcase Coach, said you should prepare a quiet and neutral space with good lighting for the interview. You should do your research, have your notes in front of you, practice talking to the camera and ask specific questions about hiring. Here’s what people are saying about her advice.

? Speaking of the pandemic...

My team at LinkedIn is curating a page of information about the pandemic from official sources, such as the World Health Organization. As someone who spent the better part of a decade as a health and medical reporter, I know that accurate information is among the best defenses we have in these situations. You can find LinkedIn’s page about the new coronavirus here: lnkd.in/virusfacts

? Other news to help you #GetHired:

The job market is taking a hit from the coronavirus, but the impact isn’t even. Some large grocery chains, such as Kroger, said they’re hiring people to stock shelves as people rush to stores to stock up on food and other goods. Meanwhile, the aviation industry has not fared as well. Several airlines, including Delta and United, have said they will halt hiring for non-critical positions to blunt the effects of the ongoing pandemic. The travel and hospitality industries have also been hit hard by the coronavirus. Here’s what people are saying about it.

Do people receiving housing subsidies face tougher job searchers? Researchers from the Urban Institute analyzed 2015 data to see if people in those housing situations were worse off when it comes to job opportunities. They found that people in public housing or those getting government housing assistance lived — on average — in ZIP codes with an excess of 6,000 other job applicants than available positions within a reasonable distance, which was defined as 6.3 miles. For people who were extremely low income but didn’t receive housing assistance, there were about 3,000 more job applicants than positions in their ZIP codes. Here’s what people are saying about the findings.

Tech sector’s dominance is growing — where you expect it. Even by expanding the definition of a tech job, new research finds that growth in the industry is concentrated in a few cities. The Brookings Institution recently included digital services jobs, such as software publishers and information companies, into their analysis, reports CityLab. They found that 28% of new tech jobs over the past decade were created in San Francisco, San Jose, Austin, Seattle and Denver. The issue, researchers argue, is that Big Tech attracts tech, making it less likely that new companies will set up shop in smaller towns outside of these hubs. If people want tech jobs distributed more evenly across the country, the researchers say it may take government intervention. Here’s what people are saying about the new report.

? Up next:

We are currently living through an unprecedented time in modern history. A virus has disrupted life around the globe, with major cities and countries on lockdown. If you’re following the suggestions of health experts and government officials, you won’t be attending any in-person networking events anytime soon. Unfortunately, networking is crucial to finding a job. In the next edition of #GetHired, we’ll discuss how to network despite being stuck inside. 

Thanks for reading! Feel free to reach out to me if you have ideas on topics or questions I should address in future editions of #GetHired. You can also email me at GetHired[at]LinkedIn.com.