With so many people losing jobs its a good idea to have a backup plan. There are things you can do now to make losing your job easier to deal with if it happens to you.

With so many layoffs of friends and neighbors it can make you worry that you will be next. You will feel much better if you have a backup plan. Don’t worry about something that may never happen but now is the time to tighten your belt and prepare yourself and your family in case you are let go from your job.

  1. Get a good resume in place. Don’t wait for the pink slip. Writing your resume will point out your skills and accomplishments. Be specific. Companies will want to know exactly what you are capable of and how you will fit in their company. How will you impact their bottom line? How will you help cut cost? What can you accomplish?
  2. Make a budget for all your necessary expenses, food, mortgage, transportation, utilities. Do not add cable, dining out, movies or any entertainment. Those things are not necessary.
  3. Cut expenses. Don’t spend a dime more than you have too. Save enough money to pay your bills for at least 6 months and a year is better.
  4. To save for your emergency fund, Stop paying extra on your mortgage. See if you can pare down your 401K payment to 3%. Put that money in a savings account. Shop at Thrift stores and low cost grocery stores. Buy store brands. Be thrifty in everything you do. You will find you can easily cut expenses when you buy only what you need. Sock the money you save in a savings account.
  5. Try to get a second job even if the pay is much lower than your main job. Put that money in your savings account.
  6. If you do get laid off before your savings are in place you may have more resources than you think. You will have your severance and you may have vacation pay. You will have unemployment pay. Look through all your stuff and see what you can find to sell on Craigslist.org or e-bay. The price of gold is up so go through your jewelry box. If you have no other resources for health insurance see if you can get your children on Peach Care, which is an insurance for families with low income. You and your wife may be able to get Medicaid.
  7. Go out every day to apply for jobs. Search all the ads in the newspaper and on the computer. Talk to your friends, family, and acquaintance. They might be able to point you toward a job. You will find something. It might be that you will have to take two part time jobs until times are better but don’t give up. We have been through hard times before and we survived. We can do it again.