Are You Ready To Be Fired?

Your boss has just informed you that your department is being reduced by two and you are fired. After he leaves, what are you going to do? This is not about finding a job it's about being prepared for financial change. How you prepare for employment change is different for everyone. Being prepared for financial change is the same person to person.

1. Build an Emergency Savings Account

Everyone should have a passbook savings account with money to use in Emergencies. This money is to never be touched except when your car needs repairs you can not afford, your basement floods and you need to pay to clean it up, or your Great-Grandma Ruth is dying and you need to go to her bedside.

Use your Emergency money, and immediately start rebuilding it by paying yourself. A good amount to have in this account will equal six months of your net income (after taxes). This will provide you with a cushion for when you receive the pink slip. If you have a little time to search, you will be able to find enjoyable, quality employment.

2. Prepare a Spending Plan

You already know you should be living on a spending plan now. Have you thought about how you would live after a job loss? Take time today to create a "Job Loss Plan" so you will have an idea what spending you will reduce as soon as you know you our out of work. Then as soon as you are told those two little words (You're Fired) you can pull out the plan and start conserving your money. Do not deny what happened and continue trying to live like you did before.

3. Carry No-Debt

This is good advice for everyone, but as it pertains to this article no-debt is really wise. If you are out of a job, you do not want to be paying $500 a month in non-mortgage bills. By keeping your credit card and even your mortgage debts to a minimum, read zero, you will be able to stretch your Emergency Savings Account money further. Even if you have a good job that you will never loose, if you are not carrying debt, you will be able to put more money into your retirement, children's college or vacation fund.

4. Know Your Creditors

If you do carry debt, be sure you know who your creditors are. This sounds silly, but a lot of people receive a bill from XYF Credit Co and pay the minimum without looking to see who XYF is. You should know your creditors and how to contact them, so that if you are laid off you can call them right away and let them know. Most will work with you to create a repayment plan that fits into your new spending plan.

When the hammer falls and you are let go, it will be shock, no matter how prepared you are. If you have been working on these four things your finances will be better able to withstand the time between jobs.

Roger Sorensen is America's Financial Guide. Learn more at his website http://www.Slave2Work.com - ask and have answered personal finance questions, read more of his writings, and join the newsletter Money Basics. "How-To Be Debt Free!" is now for sale, read about it today at http://www.Slave2Work.com/debtfree.html

---

Budgeting the Key to being Financially Stable

Single Mother's in need of Financial GuidanceBudgeting is key to... Read More

Budgeting Made Easy

Well, dang! From what I've heard and read, it looks... Read More

Can You Afford Not To Look After Your Personal Finances?

Investing is a subject a lot of people don't want... Read More

Why Live Frugally

What is it about being frugal, why do it at... Read More

UK Parents Inactivity Harming Their Children?s Future University and Mortgage Savings

The British government at the beginning of this year officially... Read More

Budget Planning - Its Elementary My Dear Watson

Does it feel like you have to be Sherlock Holmes... Read More

Students Investing in Their Future Need to Manage Their Finances Today

With the A-level results coming out, the long wait for... Read More

How to Choose the Right Bank for Your Online Business

You should thoroughly consider your business needs when selecting a... Read More

Should You Borrow From Your 401(k) Account?

If you have a 401(k) account, it can be very... Read More

Benefits of Personal Finance Software

In this age of information, keeping track of your finances... Read More

Do You Really Need the Power of Money Management Software?

I have been a loyal user of Quicken(R) for more... Read More

College Expenses: Seven Ways to Save on an Education

Many people graduate from college owing thousands of dollars in... Read More

Estate Planning Basics

You have probably accomplished a great deal with your life.... Read More

10 Tips to Make Sure Your Financial Budget Will Succeed

You've analyzed your past expenses, put them into spreadsheets, loaded... Read More

Debt Management ? More Ways to Save on Gas Consumption

The price of gas continues to climb, and with continued... Read More

Tips To Save Money At The Supermarket

Are you interested in saving money off your grocery bills?... Read More

Improve Your Professional Image Using Address Labels

One of the simplest ways to improve your professional image... Read More

Saving Money On Gasoline For Your Automobile

The gas that we fill our tanks with every week... Read More

Saving Money - Are You Doing Enough?

It is estimated that we, as consumers, waste an average... Read More

Risky Business: You May Not be as Daring as You Think

I thought I was through with exams when I finished... Read More

The Changing Shape of Family Finances

Super-mumsIt seems that the proof of maternal efforts is no... Read More

More Money? My Cup Runneth Over...But Im Still Thirsty

Most of us, especially those of us who have debtor's... Read More

Saving Dimes Can Go a Long Way

On the other hand, there are those people who are... Read More

If I Had a Structured Settlement, I Would Use It to Pay for Gas

Has anyone been to the gas pumps lately? Soon $3... Read More

10 Tips To Save Money When Dining Out

Here are some tips that can help you save money... Read More