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Ideally you will have a rainy fund that will cover six months of living expenses. If not, don’t panic. Start putting a portion of your paycheck aside each month. Putting away a little money now will provide a financial cushion if you don’t find a new job right away.
The last piece of advice is start paying down your credit card debt. Getting rid of credit card payments will help your emergency fund go farther. It will also save you money on interest, money that you can add to that fund.
You will find forms on this website to help you complete a budget and net worth analysis as well as set financial goals, such as setting up an emergency fund.
It is never easy to find out you are losing a job. But you do have an advantage over
worker who gets a pink slip on Monday and watches factory get boarded up on Friday. You have time. Use this time to get control of your finances so that you will be prepared. And in event that your base is spared, you will have significantly improved your financial picture.
Leslie Linfield is a national expert on adult financial literacy education and the consumer credit counseling industry. She has advised governmental, educational and non-profit organizations alike, and she has been quoted by the New York Times and Wall Street Journal as an expert on budgeting and consumer credit. She has also presented literally hundreds of seminars and lectures on personal financial management.
