Try to Live on Your Unemployment Benefits to Prepare for Job Loss
Few things can cause stress like potential job loss. If you are afraid of being laid off or laid off, you need to strengthen your emergency fund. Prepare to live off your potential unemployment benefits for a few months.
On Credit.com, they provide some tips on how to prepare for losing your job. If you run into unemployment, adjust your recurring expenses to reflect this temporary income:
As you prepare to lose your job, try to live on less money each month. Make any necessary cuts in your budget and predict the amount of money you will have based on the unemployment insurance you expect to receive, whatever payments your company gives you, and whatever you have in your personal savings. Plan to be out of work for 6 to 8 months, and set aside any money you save while living on a lesser amount into your emergency fund.
You may not know your severance pay or other benefits. Contact your state’s employment office and they will tell you the current benefit formula. If you are saving money and not losing your job, of course, you are not worse off – you just replenished your emergency supply or saved a little more for retirement .
Follow the link to learn about other ways to prepare for impending unemployment.
Think you are going to lose your job? How To Prepare For The Worst | Credit.com