How to Prepare for a Job Loss

You will probably lose a job through a layoff or termination at least once in your life. Being prepared for the change can make it much easier.

Difficulty: Moderate

Instructions

1. Save some money. Put aside at 6 months of expenses in a savings account. You never know when you may lose a job or how long it will take to find another one.

2. Pay off your debts. Paying for a new car is much harder when you don't have steady income. Pay it off now and you won't have to worry about it later.

3. Live on less than you make. If you can live on less money than you earn now you can take a lower paying job in the future. While I don't advise taking a job for less than your previous job, there may be times when it is necessary.

4. Keep your resume up to date. Every time that accomplish something at work, write it in your resume. It doesn't have to be written well, just make sure that there is enough information so that you can polish it later.

5. Create a network. Keep track of former co-workers, current co-workers, friends, and neighbors. You can use a social networking site like Facebook or LinkedIn, or you can keep your own records. The network will be very valuable if you actually lose your job.

6. Work hard at your current job. If you are ever being considered for a new job they will want to talk with your previous employer. It's much better if your employer has something good to say about you.

Tips & Warnings

• Keep your savings in something liquid like a savings account or money market account. Do not put it in a CD, bonds, real estate, or stocks.
• Look for an alternate source of income. Even a small amount each month can make it easier when you don't have a job.
• Never speak poorly of your old company or boss.