Is A Job Loss Always a Disaster?

Right now, as US unemployment rates hit record levels, lots of people are losing sleep over how they would cope with a loss of their job. But you can prepare for a job loss, and rather than just indulging in worry, why not take some positive steps to prepare?

Evaluate Your Expenses – What Are Your Priorities?

The first thing you need to do is take a realistic look at your finances. Divide your monthly expenses into three categories first. What bills must be paid on time every month, what can be delayed and what can be done without?

For instance, you probably need to keep your electricic bill current. But you may be able to do without a gym membership (take a walk) or a weekly pedicures. It is probably easy to determine what things you must pay for and what things you could live without.

Other bills, like groceries, will still need to get paid, but are probably easier to reduce. If you only bought fresh produce that is on sale and in season, and cut out steaks in favor of burgers, you should be able to shave your tab. tYou do not want to sacrifice nutrition, but you do want to stretch your dollars to buy essentials rather than luxuries. Some people can save $150 a month by brewing their own morning coffee instead of stopping for a fancy cup at the coffee bar!

Again, use these suggestions a a guideline because your own priorities will be different than mine. I need my Internet access to work, and to find the type of work I do, but some women may feel as if they need to have a weekly manicure to present themselves well for their job interviews. Of course, we probably can both find a compromise. I can use DSL rather than cable to save money, and those women could learn how to give themselves a home manicure with discount store products!

Now Evaluate Your Income and Savings

Now that you know how much you have to spend every month, look at how much money you have saved. How long would it last if you lost that paycheck? If you have saved for six months living expenses, you can relax a little because you have some time to find another job. If not, you may want to look at a product like Paycheck Guardian unemployment protection to supplement any state unemployment benefits you could qualify for.

Other sources of income could come from selling things you do not need at a garage sale or at an online auction like EBay. You may be able to come up with temporary freelance income, mow lawns, or fix sinks! You could offer to pick up kids at school for your working friends or offer grocery shopping services to busy professionals! Even dog walkers have turned their hobby into profitable businesses!

Unemployment Is Not Always Bad!

You know, many people have actually come out of a period of unemployment very well. They found jobs that suited them better or even took a chance and started a business like they had always dreamed about. Really, the difference between negative and positive outcomes often comes down to being prepared!

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