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Quoted from : Chicago Tribune
Image from : Indie Business Blog
Unemployment can strike anywhere, at any time. And it's striking more often.
The national unemployment rate in May had its biggest one-month jump in more than 20 years, rising a half-point, to 5.5 percent. If you're one of those statistics—or might be one soon—you need to quickly assess your finances and take steps to weather a temporary loss of a paycheck. That includes immediately cutting your expenses, talking to your creditors and looking for a new job. What you don't want is to spend months living off credit cards, getting way over your head in debt and ending up as part of another set of statistics—bankruptcy filings.
Assess your finances. This is why financial advisers are always nagging people to set up an emergency fund with enough cash to cover three to six months' worth of living expenses.
Contact your creditors. Let them know as soon as possible about your situation. Creditors may be more willing to work with you if you haven't fallen far behind in payments.
Start looking for work. Do it immediately, even though it may be emotionally difficult. Losing a longtime job is akin to losing a loved one. Grieve, accept it and move on.
Make use of any job training or placement assistance offered by your former employer or in your community.
Years ago, there was still such a thing as a "job for like". These days, the almighty bottom line dictates whether you have a job or not. Having been laid off once and on the brink of another similar situation ten years later, I have come to the conclusion that however stable you think you job is, IT'S NOT.
So I believe that there are 3 things that everyone MUST consider doing while you DO have a job :
- Save a percentage of your income. Easier said than, especially when you have so many commitments and everything seems rosy at work. But believe me, your savings will help you in MORE and one way when you really find yourself in the middle of not one, but many rainy days.
- Keep yourself as debt-free as possible. If and when you lose your job or source of income, the interest that you have to pay each month on credit cards, that second car and personal loans can quickly bury you in despair.
- Develop other sources of income. Start a weekend business. Learn to make money from your hobby. Invest in a small business. Invest in stocks. Don't just depend on your salary. You have to learn to roll your money. Even if they don't match your salary, at least you have something to fall back on if you lose your main income.