You may have lost your job already, or it’s something you’re concerned about. Either way, the keys to surviving a job loss financially are to plan ahead, take stock of your income, and cut your expenses.

Plan ahead

If you haven’t been laid off, it’s a good idea to plan ahead for that possibility. It’s hard to know how long you’ll be out of work, so to be on the safe side, prepare for at least six months of unemployment. You might find a job much sooner, but you don’t want to be forced to take the first opportunity that comes along, especially if it isn’t suitable.

Come up with a financial plan for unemployment, and design your plan with some flexibility to allow for adjustments if your situation changes. Circumstances can vary based on how long you’re out of work, and whether unanticipated expenses arise while you’re unemployed.
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