Losing your job is something that you hope never happens, but unfortunately, job loss is the reality for many people. Job loss can occur for a variety of reasons, sometimes simply because your company is downsizing or due to a small mistake made on your part. Regardless of the reason, job loss can be devastating on your finances if you’re not prepared. These tips will help prepare you so that job loss isn’t the end for you.
Keep Your Savings Full
One of the best ways to prepare for job loss is to make sure you have enough money in your savings account and emergency fund. If you end up losing your job, you’ll go from making quite a bit of money to making nothing at all. By having enough money in your savings account, you will have something to fall back on in the worst case scenario. This can help you keep your house and car since you won’t default on any of your loans.
Assess your Expenses
If you feel as if you’re about to lose your job, you might want to assess your expenses. Go through all of your expenses, including the amount you spend on bills and the extras. Once you know where your money is going, you can decide which expenses can be cut out. By cutting out those extra expenses, you’ll be able to save up more money before losing your job and you’ll also have fewer expenses to worry about after you’ve lost your job.
Network, Network, Network
Losing your job isn’t the end of the world, especially if you’re able to find another job right away. The best way to increase your chances of finding a new job is to start networking ASAP. Even if you feel secure in your current job, networking with people in your industry will present to you more opportunities for growth. If you are unfortunate enough to lose your job, having contacts on hand can help you score an interview for a new job faster than through the traditional channels.
Learn New Skills
If your job is on the line, you can prepare for job loss by learning new skills. Regardless of the time you’ve spent in your industry, there’s always room for growth and improvement. By adding new skills to your resume, you’ll make yourself a more desirable employee. This could help you keep your job with a current employer, or it can help you find a new place of employment after going through job loss.
Job loss is something that can affect anyone. There’s no guarantee in life that you’ll never be fired or laid off from your place of employment. By preparing for job loss, you’ll be able to minimize the financial damage associated with unemployment. How do you prepare for job loss?
Elizabeth Lampman is a coffee-fuelled Mom of 2 girls and lives in Hamilton, Ontario. She enjoys travelling, developing easy recipes, crafting, taking on diy projects, travelling and saving money!