Preparing for a Layoff

Are you financially prepared to lose your job?

You can prepare for a layoff by building an emergency fund and understanding your health insurance options. Update your resume, and educate yourself about other opportunities that may be available. Stick close to your budget and consider cutting out all unnecessary spending. Begin saving a portion of every paycheck to build your emergency fund. Automatic deposits will keep you from spending it. Out of sight – out of mind. Grow it faster by cutting back on variable spending. Cut back on entertainment expenses and choose to eat at home. Look at this positively by creating your own competition. How much money can you save in one month by simply saying “No” to things you don’t really need? You’ll be surprised at the hundreds of dollars you can transfer into an emergency fund. This will reduce stress in the future if you do lose your job, and even if you don’t, it’s an excellent exercise for the whole family to work together for a common goal.

Now, if you don’t have a budget, this is the time to create one. Track every dollar you spend for the next 30 days to build your categories. We have a helpful guide online that can get you started. Do you know what your company offers in your severance package? Know what’s provided so you aren’t taken by surprise, and remember, negotiations may be possible. Finally, work as unto the Lord. A boss who knows you’re giving your best will not want to lose you.

And if you’re concerned about ever-increasing credit card debt, Christian Credit Counselors are experts. They can create a debt management plan specifically for you. For more information, visit online at crown.org/ccc.