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Financial Planning Tips for Facing Job Loss

MP900309635While it doesn’t help to worry needlessly, sometimes workers are aware that their jobs are in jeopardy. If you are in that situation, rather than panic, you can take some steps to see to it that you are ready in case the rumors are true.

Financial planning can help you feel better about your finances overall. Part of what a Fee-Only financial planner does is help get you to the point where you are not living paycheck to paycheck so you can weather financial storms but there are things you can do as well if you think you employer is about to let you go.

Bankrate.com has tips for those who If you have reason to believe you may lose your job soon:

  • Start cutting back on extras—even if you don’t lose your job, it is a good idea to spend less.
  • If you have health insurance with your job, make some appointments before you end up in any kind of limbo trying to get new coverage.
  • Stop paying more than the minimum on debts—you will likely need more of a cash cushion until you get back on your feet.
  • Try to pay off a 401 (k) loan because it can be taxed when you are no longer working for your employer.
  • Consider refinancing your mortgage or taking out a home equity line of credit before you are let go.
  • Look for part-time work but find out how it will impact any unemployment benefits you would get if you lose your job.
  • Brush up on your skills or seek low-cost ways to learn new skills

While these tips are for those who feel like job loss is on the horizon, Ford R. Myers author of Get the Job You Want, Even When No One’s Hiring offers tips for anyone because even when you feel secure in your job, it doesn’t hurt to be prepared: “the wisest career move these days is getting prepared to do more than one thing to earn a living.”