In today’s uncertain economy no one’s job is safe. Businesses are closing their doors, salaries are being cut and 401k matches are a thing of the past. But as credit remains tight and consumer spending slows there may be even more job losses still to come. If you think your job may be in jeopardy then you need to start taking action today so you’re prepared when unemployment strikes. Here are seven ways you can prepare for job loss.
1. Increase your cash reserve.
The old adage says you need three to six months of living expenses set aside as your cash reserve. (Three months if there are two income earners in your family and six months if there’s one.) But in today’s economy, that’s not enough. With the job market as slow as it is you should add at least two extra months to your cash reserve, which means you should have five to eight months of living expenses saved up at a minimum.
2. If you have two income earners in your family, practice living off only one income.
Practice living only off the income provided by the job that is most safe. Consider the second income “a bonus” while it lasts and use it to bolster your cash reserve. This will require changes in your lifestyle and it’s best to start making these changes now so you can see what works for your family and what doesn’t. This will go a long way toward preparing you for
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