The loss of a job can be just as traumatizing as any of the other disasters and emergency scenarios discussed in this book. It’s also one of the most likely scenarios we’ll discuss, which is why everyone needs to be prepared to face this possibility.
If you skipped over the section on building your emergency fund, please go back and read that section. Having an emergency fund is the only way you can ensure you’ll have the money to survive an extended period of unemployment.
In the past, most experts recommended having about a month’s worth of income in your emergency fund; because of today’s volatile job market that number should probably be a lot higher. A more realistic number, based on the time it takes to find a job in today’s marketplace, is probably closer to six to nine months.
The last thing you ever want to worry about is being able to feed your family during a time of unemployment. Losing your income is stressful enough; not being able to feed a hungry child is beyond anything I care to think about.
To ensure you and your family never go hungry, start building your emergency food pantry now. Having even a couple of months’ worth of food on hand means your grocery bill is one less expense you’ll have to worry about while you don’t have a regular income. You’ll be able to focus your full attention on finding a new job or starting a new business.
One of the first steps in surviving a job loss is getting back to work as soon as possible. That means being proactive and preparing for the possibility of losing your job now.
The more people you have in your corner, the better your chances are of finding employment. That means you need to start networking. From social networking sites like LinkedIn to attending industry trade shows and mixers, you need to get out there and meet people who can help you further your career. People are much more likely to hire someone they know than some guy whose only way of finding a job is blasting out thousands of resumes.
Now is the time to start figuring out alternative sources of income.
Grab a pad of paper and start listing all of the ways you can start bringing in some extra cash. Not only will this help you increase your emergency fund, but you’ll have a list of things to immediately fall back on should you lose your job without warning.
If you’re facing a pending job loss, you need to take another serious look at your budget. Your main concern is shelter, food and water, and keeping the lights on. Anything beyond those needs should be put on hold or paid only when the essentials are taken care of. If you’re working on getting out of debt, that may have to take a backseat for a while until you regain your stability.