How to survive a six-month layoff
We all hate to consider layoffs but lay offs happen daily and
affect almost anyone with little or no warning. If you are the
victim of a lay off or are pretty sure that you are the next in
line, start planning right away so you can survive the time out
of work.
First off, start looking for a new job. If your financial status
is not good, consider getting temporary work to keep the money
flowing while searching for a position. No matter what, you have
to start looking right away.
Check your spending
One of the most important steps is to check your spending. If
you may not be able to find work for three to six months, you
need to drastically curb your spending. Cut back on luxury
services like cable, satellite, cell phones, lawn care, house
cleaning, etc.
While we never want to get a bad credit report, it just seems
logical to pay your credit cards late if it means that you can
keep your house. What's worse, losing your house or having a
couple of late payments on your credit cards? Remember that most
companies will not report you to the credit bureau for 30 days
even if the bill says late after 10 days.
Check your funds
If you are like most Americans, you live paycheck to paycheck
with a small amount going to savings and the same to 401K. If
not, you can probably ride out a long term lay off with little
problems. If so, then start determining where your money is and
how you can get to it.
Your primary goals when facing a long term lay off should be to
get work, keep your house and keep your car(s). Keeping your car
might fall secondary to other considerations if you actually
have positive value in your car. If, like most Americans, you
are in a negative equity situation with your car loan, you want
to avoid repossession at all costs.
Finally, consider any sources of loans or advances just in case
your existing funds will not stretch to accommodate your
expenses. If you have family that might be able to help, contact
them and let them know you are