Rumors of layoffs are scary, especially if you’re struggling to get by. Fortunately, there are things you can do to prepare for a possible layoff in the future. Let’s take a look at a few tips.
Emergency Fund
Ideally, you want to save three to six months of expenses. This emergency fund should cover all of your basic living expenses and at least the minimum payments on your credit cards. Tally up all of your expenses such as rent/mortgage, food, utilities, car note, insurance, and credit card payments so that you’re not pushed over a financial cliff if there’s a layoff.
Side Job/Business
It’s always smart to have at least one other source of income outside of your job. Whether that’s rental income, a part-time job, or a side business, you need cash coming in, just in case the worst happens. As matter of fact, a side job can go a long way in helping you fund an emergency savings account.
Update Your Resume
As soon as you hear rumors of a layoff, you should update your resume. Just putting together an updated resume will do wonders for your confidence and give you a head start on a future job hunt.
Consider Bankruptcy
If you’re laid off and facing financial disaster, seriously consider filing bankruptcy. Bankruptcy is helpful when you’re unemployed because it can help you discharge all of your debts and keep your future income safe for yourself and family.
Facing a layoff is never easy, but preparing financially and professionally can help smooth the transition to next job.
