Financial strategies for Canadians facing job loss

Are you facing uncertainty in your current job or career field?

Losing a job can be overwhelming, both emotionally and financially, requiring you to pivot and make calculated changes to get your life and finances back on track.

Whether you’ve recently been laid off or are worried about potential job cuts, it’s important to take proactive steps to manage your money. From creating a realistic budget to exploring new income opportunities, there are several strategies that can help you regain financial control and reduce stress.

Below, I’ll offer a few key financial tips, including how to build an emergency savings plan, up your skills, and expand your network to make your job search smoother.

Assess your current financial situation

In September, data from Statistics Canada revealed that the unemployment rate dropped slightly for the first time in 2024, with over 47,000 new jobs added to the economy.

While it may be a sign of good things coming in the future, the current unemployment rate is still over 6 per cent, and many companies continue to cut jobs. In addition to large-scale economic changes, job cuts could be attributed to a number of changes, such as advancements in AI and technology companies downsizing in-person labour forces in favour of remote workers.

Many careers just don’t offer the same job security that workers could once expect. So even if you do feel that you have decent job security, it’s still a good idea to have a plan in place, just in case.

Revise your budget and create an emergency savings

Start by going over your budget and take note of how much money comes in and where your money’s going, including spending categories such as:

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  Food and groceries
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  Fuel and vehicle costs
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  Insurance costs
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  Dining out
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  Utility bills
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  Mortgage or rent
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  Entertainment and subscriptions
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  Shopping and discretionary spending

This will give you a better idea of where you stand financially and help you audit some areas where you may be overspending.

If you haven’t done so already, you should also begin contributing to an emergency savings fund. Ideally, you should have enough money saved in your emergency fund to cover at least two-months’ worth of bills and living expenses. I would take that even further and say don’t stop contributing to your emergency fund until you have six months’ worth of expenses saved.

This way, if you do lose your job, you won’t have to stress as much, and you will have enough time to make a calculated decision about your next job, without having to rush to take the first offer you get that might be at a lower salary than you’re worth.

Explore EI benefits and side jobs

If you’ve recently lost your job, your first step should be to apply for Employment Insurance (EI) benefits, which can provide temporary financial relief. Be sure to check the eligibility requirements and file your claim as soon as possible.

You might also consider part-time or temporary work, such as freelancing, ridesharing, or food delivery services. These can help cover your immediate expenses while you search for another full-time opportunity.

Manage your financial obligations

If you’ve recently lost your job, you may be able to catch a break with your financial obligations. For example, lenders may allow you to make a one-time deferment of your monthly car payment, which can give you a month’s worth of financial breathing room.

Credit card companies may also do the same or offer to pause interest payments during a difficult financial time to give you time to catch up on your balance.

Your landlord may even be willing to waive a late fee if you find yourself late on a rent payment.

At the end of the day, it all comes down to communication. If you’re considering any of these options, I recommend calling well before your due date and explaining your current situation.

Learn and develop new skills

One of the best things that you can do to give yourself better job security or get into a new line of work is to constantly learn and develop new skills. This will make you more valuable to your current employer and will make it easier to find gainful employment if you do lose your job.

Not sure where to start?

Many skills can be learned for free on YouTube or by reading/listening to books in your free time.

If you’re in a specific career field, you may also consider researching various accreditations and certifications you can obtain. The more you have, the higher pay you can demand and the more job security you’ll have.

Build your network of contacts

You’ve probably heard the old saying, “your network is your net worth.” Take it how you will, but the reality is that building your network of contacts is one of the best ways to find new jobs and grow in your current career field.

By contacts, I’m not just talking about your friends who you go out with on the weekend. While these individuals can still be valuable resources, you should also look to build your network of professional contacts who work in different positions and with different companies.

You can often meet these people at networking events in your city or by making an effort to spend time where these people hang out, such as:

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  Certain bars, cafes, or restaurants
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  Recreational sports or game clubs
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  Community events

You never know where you’ll meet your next great contact. Just try to be friendly, ask questions, show interest, and be open to having conversations with strangers.

Staying positive

It can be very challenging trying to stay positive if you’ve just gotten laid off, fired, or are having trouble keeping up with your financial obligations. These times can induce stress that keeps you up at night or can push you into negative coping mechanisms.

Having somebody you can talk to, be it a friend or therapist, can be a huge help and can help you remain positive during this transitionary period. Journaling and getting your thoughts out of your head and onto paper can also be a helpful practice.

Most of all remember — bad times don’t last forever. As long as you take consistent action toward improving your situation, remember to be grateful for the small things you have, and do your best to stay positive. Your life and finances can change for the better and may even land you in a better position than you could have ever hoped for in the past.

Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial