A job loss is not only emotionally devastating, but obviously affects your finances.
- Don’t panic. Your focus needs to be on productive solutions not dwelling on worst-case scenarios.
- You should be open to seeking new kinds of work but remember what your strengths are.
- Live within your means. You’ll need to watch expenses weekly, focusing on necessities like food and shelter.
- Don’t drop all fun, but find low-cost or free activities.
For those who have not suffered a job loss, plan now to get through such an occurrence.
The rule of thumb is that you should have six months of your income set aside in savings.
At the least, have three months available.
It's not easy, but here are a few steps you can take to reach the goal of having six months of savings:
- Pay yourself first by saving at least 10% of your total income every paycheck.
- Save a few dollars each day. Either reduce a daily expense (expensive coffee, going out for lunch, etc.) or put pocket change aside in a jar. Then, make sure what you're saving gets put in the bank, not just used elsewhere.
- Identify “needs” versus “wants”. Only buy the “wants” with your extra cash.
- Compare your actual spending against your budget every month and make adjustments as needed.
- Focus on eliminating your high-interest debt.
- Pay more than the monthly minimum on your credit card bills to reduce the balance you owe faster.
While a job loss can stressful and shocking, it doesn’t have to be overwhelming.
Peoples State Bank, Member FDIC
