Losing your job can be a scary experience, but there are ways to prepare and make it less stressful. Here’s how you can get ready for a potential job loss:
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Adjust Your Budget: If you’re at risk of losing your job, it’s time to take a hard look at your budget. Cut out any unnecessary expenses. Consider switching to cheaper alternatives for entertainment like Netflix or Disney+ instead of cable TV. You could also raise your insurance deductibles to lower your monthly premiums, cancel any subscriptions you don’t need, and try to save on utilities by being more energy-efficient.
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Build an Emergency Fund: Start saving money in a high-yield savings account. Aim to have enough to cover three to six months of expenses. You can add to this fund by cutting out non-essential expenses or using any extra money you get, like a tax refund or a stimulus check.
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Consider Your Health Insurance Options: If you lose your job, you might also lose your health insurance. Look into options like COBRA, the federal government’s health insurance marketplace, or Medicaid. You could also consider a cash-only doctor who charges a flat monthly fee.
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Pay Off Debt: Try to pay off any high-interest debt as quickly as possible. You could transfer your debt to a lower-APR credit card or use a home equity line of credit. Some credit card companies might even offer temporary hardship concessions if you explain your situation.
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Think About Your Mortgage: If you’re worried about making your mortgage payments, reach out to your lender. You might qualify for mortgage deferral or be able to refinance your mortgage to get a lower rate.
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Apply for Unemployment Benefits: If you lose your job, apply for unemployment benefits right away. The process varies by state, so check the Department of Labor’s Career One Stop website for information.
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Review Your Cellphone Plan: Look for ways to save on your cellphone bill. You might be able to switch to a prepaid plan or lower your data limits. Some carriers are even offering special deals due to the pandemic.
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Start Networking: Use your network of friends and colleagues to find new job opportunities. Social media platforms like Facebook and LinkedIn can be very helpful.
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Look for New Income Sources: Consider switching to a recession-proof industry or finding a work-from-home job. There are still companies hiring during the pandemic, especially in industries like grocery stores and online tutoring.
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Find More Ways to Save Money: There are many other ways to save money, like selling a car you don’t need, renting out a room in your home, or starting a home garden. Every little bit helps!
Remember, it’s all about being proactive and prepared. The more steps you take now, the easier it will be to weather an uncertain economy.
