Preparing for potential unemployment
With the economy in a recession, the unemployment rate is at a high, with some states facing unemployment rates of up to 10%. As companies look to cut their own costs, they often turn to trimming their workforces, which makes it difficult to find a job if you are laid off as well.
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Because the threat of unemployment-and sometimes extended unemployment-is more real now than ever, it's important to be prepared for potential unemployment so you will not be in over your head if you lose your job.
The following are some tips for preparing for potential unemployment:
Save, save, save!
Many people want to save, but look at their budgets and feel like they are living paycheck to paycheck with nothing left over for savings. However, almost everyone can and should save. If you want to save but are unsure of how to begin, consider this:
- Rework your budget. If you haven't already done a household budget, do one now. You can make one simply on an Excel spreadsheet. When doing your budget, make sure you set aside a certain amount of money for savings. 10% is ideal, but do as much as you can.
- Go through your checking account statement and add up little costs. Random trips to the store, fast food, and eating out can really add up. Once you see where your money is going and how much, skip the eating out and the trips and put that money into savings instead.
- Carry cash. Debit cards are convenient, but they also make it so you spend more money. If you only use cash, or put your grocery and entertainment money into envelopes. When it's gone, it's gone. This way, you can afford to slip some savings into your budget.
- Get rid of extras. The $50 a month you spend on cable, the money for the paper when you can read it online, or the amount you spend on a land line each month when you only use your cell phone all adds up. Cut these things and put that money into savings instead.
Keep your resume updated.
It's a good idea to always keep your resume updated in case you should face potential unemployment. That way, if you do lose your job, you can immediately begin looking with an up to date resume. Have someone look it over and proofread it for errors.
Continue to network.
You should always network, whether you are looking for a job or not. Let people know what you do for a living, and ask them to let you know if any openings in their companies come up. Networking and making business connections are good ways to find a job quickly in case you lose your job.
No one wants to face unemployment, but in this economy, it's a real possibility for everyone. But you can be prepared for potential unemployment by keeping your resume updated, networking, and making savings a priority. By keeping money set aside, you will be prepared for emergencies that come your way.
