3 Ways to Prepare and Be Ready for a Job Loss

by Miranda Marquit · 6 comments

Even though the recession is technically in the past, many individuals and companies are still feeling the pinch. On top of that, there are concerns that a double-dip recession could be on the way. What does this mean for you? Well, it could very well mean that you could see your job in danger. You never know when the ax will fall, and you could be laid off at anytime.

If you are reading the signs, and concerned that your job may be one to go, it’s time to prepare. You want to be ready to spend as little time unemployed as possible. Here are 3 things you can do to help you prepare ahead of time — just in case:

1. Prioritize Your Spending and Start Cutting the Less Important Items

The first thing you need to do is look through your spending, and prioritize. Consider your most important expenditures, and identify what you simply cannot avoid paying for. Look at items that are less important. Start cutting back on the less important items to get used to the idea of living with less. Put the money you are no longer spending into your emergency fund to give it a boost. If your job is in danger, you might need it.

You are better off if you actively work to get your finances in order before you are forced to by a job loss. If you are concerned for the future of your position, start now to make changes. You will be more used to the lifestyle, and you might even have some extra padding in the emergency fund.

2. Start Cultivating Income Diversity

If your job is in jeopardy, one of the first things that might come to mind could very well be that your main source of income is in danger. It is uncomfortable to be at the mercy of a single income source. Now, before you are laid off, is the time to cultivate income diversity. Look for ways to bring in a little extra. While you don’t need a side income that overwhelms your “day job,” you should at least work toward getting a little more coming in from different sources. Your emergency fund will be less strained, and you will have a little more breathing space as you look for a new job.

Plus, income diversity helps you put yourself in charge of your own financial destiny. This is important if you don’t want to be at the complete mercy of your employer.

3. Make Sure Your Resume is Current and Your Networks are Updated

The first two items on the list are more about shoring up your finances. This one is all about making sure that you are ready to look for a new job as soon as possible. Even though you can collect unemployment for months, it isn’t always the best idea. The longer you are out of work, the harder it is to find a job, since employers tend to think there is something wrong if you go through a very long stretch of unemployment.

You can hit the ground running if you keep your resume current, and updated to reflect the new rules of the job hunt. Additionally, make sure your network is updated. Go through your contacts, and reach out. It’s best to do this before you lose your job, re-establishing ties before you let others know that now you want a new job.

You may not lose your job, but it never hurts to be prepared. Indeed, even if you think your job is perfectly safe, it is a good idea to get your finances in order, diversify your income, and make sure your network is up to date.

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{ 6 comments… read them below or add one }

Money October 18, 2011 at 8:32 pm

In my opinion, the best way to prepare for a job loss is to start learning as many skills at your current job as you can. First, that makes you more valuable and thus reduces the chances of you getting fired. Second, you become more qualified if you do lose your job because of all the skills you have acquired.

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William Lee- Earn Money From Blog 2.0 October 19, 2011 at 7:34 am

Thanks for the great advice. Since the economy is of stable, we should be preparing to save more money in case the worst happen. I am working hard in passive income through my blog. I hope my blog will become my main income source soon. :)

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Vince Thorne October 19, 2011 at 6:32 pm

All imprtnant points. Lets not forget the linkedin factor. While it would still seem unprofessional to add a tag line like I am looking to be hired, if you are in immediate need of a job there are ways you can do it. One is update you profile in great detail and tailored to the kind of industry youw ant to be in. Recruiters scourge the net and will likely catch your profile change and initiate a contact.

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Jean October 22, 2011 at 11:05 pm

Good post, Miranda. I am always wary of falling into hard times and keep saving my money wherever possible. I avoid all unnecessary purchases and focus more on proper investments and the like. Good point about the keeping your resume updated along with any credentials that may prove useful along the way.

-Jean

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Marbella October 23, 2011 at 3:12 am

Depending on how small or big company you’re working on maybe you can open a rival business if you know all the weaknesses, strengths, customers, suppliers, etc. that your present company has.

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xp s6 October 23, 2011 at 4:02 pm

Thanks for the share, I always thought paid surveys are scams. Good to hear something original.

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