How to Survive Being Layed Off

The unemployment rate has been the highest since 1983 and it doesn't seem like it's getting better any time soon. If you have been given a pink slip or you feel you are close to getting one, you might want to begin the process of preparing yourself for the worst in case you are layed off. There are steps you can take to ready yourself in case you get layed off from your job and get some peace of mind at the same time.

Instructions

1. Don't panic! Take a deep breath and tell yourself that you will get through this because you will. If you are still working, start putting money into an emergency savings account to help get you by during your job search. If you are paying down credit cards, pay only the minimum until you have at least two or more months of savings to get you by.

2. If you get layed off and don't have any savings to get you by, use your credit cards or ask for a temporary loan for friends or family until you get back on your feet. Finding a job during a bad economy can be horribly difficult so consider thinking outside the box such as applying for several part time jobs like delivering the newspaper, working at a local coffee shop, or finding a job as a bartender or wait staff. Looking for jobs in industries that tend to have high employee turnover rates will help with job availability and at least bring in some money until you find what you are looking for.

3. Go through your expenses and look for areas you can cut out to save money. Get rid of the high cable costs by sticking to basic cable and cut down on unnecessary expenses such as coffee and lunches and bag it instead. Consider refinancing your home or car loans if it will save you money on your monthly payments. You can negotiate pretty much anything so don't be afraid to ask for alternatives to your current situation. Many bill collectors understand the tough economic conditions and will try to work with you.

4. If you find that you can't handle some of your bills or the usual monthly payments, talk to your bill collectors and ask them to work with you until you get a job. Many are more than willing to help you if you are proactive and call them before your accounts go delinquent. They can't help you if you don't let them know what's going on.

5. File for unemployment. This is your money because a portion of your paycheck is used to fund unemployment insurance. You can earn any where from $1000 to $1200 a month in unemployment and some of it is not taxable.

6. Try to have a positive attitude and go into your job hunt with confidence. Search the internet, network as much as you can, and make sure you update your resume. Consider looking at your passions and go after a job in an entirely new area. Going after a job that includes your passions will make you more enthusiastic during your interview and increase your chances of getting hired.

Tips & Warnings

• Consider a home equity loan or line of credit to pay your monthly expenses during a layoff but make sure you pay it back.

• Don't forget to take care of yourself during a layoff. Keep a positive attitude, workout, and eat healthy.

• Regardless of the bad unemployment news, companies are still hiring so there is still hope. Just don't give up!

• Whatever you do, try to avoid raiding your retirement fund.