5 Tips to Financially Survive Job Loss

Seek New Sources of Income

survive job loss financially, sources of income To protect yourself financially from job loss, begin to search for alternative sources of income. If you have enough equity, can you apply for an additional line of credit on your home or extend your present one? This will provide a buffer for you if you suffer the loss of your job.

Compare interest rates of your credit cards with new offers. Identify which one has the best interest rate because you may need to use it as a means of borrowing money.

If your job matches your contribution to your 401k, contribute the full amount. If you add more, consider putting it into a short term savings account.

Although this might be difficult, consider asking a family member for a loan. This will likely be the best source.

Become a Master of Your Current Benefits

financially survive job loss, know your employee benefits While you still have access to your employee benefits learn everything you can about them.

What happens to your pension and 401k if you lose your job?

Find out if your company has an Employee Assistance Program (EAP). If so, you may be able to see a psychologist to discuss your job situation for a set number of appointments. If you are employed while you start, you may be able to complete the sequence even if your job ends.

If you need prescriptions, make sure to fill them before you are put onto COBRA.

Research Your Insurance Policies

financially survive job loss, cost of insurance, health, life Learn everything you can about all insurance provided through your job including life, health and disability. Can you take them with you? What is the cost?

Begin to shop around for life and health insurance plans. Discover what would be affordable for you.

Review you and your family's health history and discuss this with a financial planner to estimate the total cost of the potential policy.

Cut Back Spending and Pay Back Credit

survive job loss financially, cut back spending, pay off credit, debts, save money Design a budget and start to strictly implement it. Cut back on your daily spending. Make sure that your family is also on the same page.

If you have planned for an expensive undertaking like college or a wedding, discuss with your family that these plans might have to be adjusted.

If you live in an expensive neighborhood, discuss with your family plans to potentially relocate to somewhere more affordable.

Work Your Network and Prep Your Resume

financially survive job loss, update your resume, network, build contacts In times of potential job loss, make as many connections in your network as possible before leaving the job. See if you can find a new position at your company and shift internally. Many people secure their next job through contacts they had at their previous workplace.

Practice your elevator speech and begin delivering it to listeners when you can.

Dust off your resume and update it with all your recent achievements. Start applying for new jobs.

Be aware of your current company's view of social networking websites and don't over step any boundaries.