There are many things that we pray will never happen to us such as getting ill, losing a loved one or losing a job. But these things can happen, and if they do, you want to be prepared for them. If you lost your job tomorrow you would most likely feel quite stressed out. Perhaps you have a large emergency fund that will see you through until you find a new job. The problem is that most people don’t. Most people these days are carrying a mortgage, 2 car loans, and credit card debt. If that describes you, let’s talk about what you could do to survive financially if you lost your job tomorrow.
Review Your Budget
Do you have a spouse that is working and contributing to the household? If yes, factor in the amount they bring in and examine the difference. If your budget is now at a negative balance each month due to your lack of income, then go through it and see which expenses you can decrease or delete, even if it is just temporarily. For example, do you have a cell phone and a landline phone in your home? Do you really need both of them?
Another place where we all seem to spend a lot of money is on groceries and dining out. Look for ways to reduce that starting immediately.
Last summer one of our neighbors lost his job and while he looked for a new one, he and his wife also found ways to bring in more money to offset his loss of income. They sold large items that they no longer used. They had a garage sale to clean out all of the low cost items that were cluttering their house. And after 3 months of purging and re-organizing, he was offered a new job and went back to work.
You can do that too!
Have a garage sale as quickly as possible.
Sell one of your cars and eliminate that extra car loan.
Consider moving to a smaller home or renting out a room in your current home.
Get a Part-Time Job
While you look for a new full-time job, consider working at a part-time job perhaps at a local grocery store or at Starbucks.
Remind yourself that losing your job is just temporary and you will get back on your feet soon. Once you are back to work full-time you will be happy you made the above changes because now more of your income can go towards any debt or mortgage payments you are making, or into your savings account.