Preparing for Unemployment: Everyone Should Have Support Ready

Unemployment – it’s a worst case scenario for many and something that people do not want to think about in the hope that it will never happen to them.

But the fact of the matter is that anyone can be struck by unemployment, regardless of their current position, level or employer. This is especially so in a recession when businesses are often forced to let people go, are not able to open up positions to those without a job and if a vacancy does occur there are often a large number of people competing for it.

It is a place that nobody wants to inhabit and considering the security that a job brings – a job equals money, which means a home, food, money for bills, for clothing, for all the extras – losing your job brings along a great deal of extra worry and stress. Being employed also brings with it a status, a standing in society’s eyes, so being without a job can make you feel depressed and alone.

All of which means that making preparations, creating support should the worst happen, is something very important. If unemployment does not happen – great! And you have extra money saved that could be used for other things. Having that safety net there will be useful any number of situations that could happen.

 

Preparing for Unemployment

These are things that one can do in general, to create support should unemployment happen, or should unemployment be looming on the horizon:

• Organise your budget. You should always be aware of the comings and goings of your money. You do not have to count every penny but be aware of your money’s movements on a monthly basis and how much you have spare. There are always changes you can make that will save money, some of which may include taking measures on a day-to-day basis to reduce bills, finding cheaper alternatives to the things you buy and generally finding ways to trim your spendings. If you have a mortgage, you may even think about recalculating the monthly payments to see if you can lower them. Every pound saved from somewhere all adds up eventually.

• Though it sounds like a large amount, it is said that you should try and save up six months of your usual spending – so enough to cover rent, bills, food and all the sundry others for six months. Though this calls for some major saving, should you lose your job you can be sure of good security, even if it takes a while to find a new job.

• It can seem frivolous when you are in a seemingly comfortable job, but try to stay aware of the job market and other positions. Keeping up with such information means that you will not be starting from scratch if made unemployed (and you may also not be in the best frame of mind for a while in the event of losing your job). On the other hand, you may actually end up finding a better position during your research. In a similar fashion, be sure to keep your CV up to date. 

• Be aware of any debt you may have and keep itunder control. It could cause some serious problems should you become unemployed. 

• If you have a partner or family who also rely on the money that comes from your income, be sure to discuss things with them and make plans. Work out ways together that will ensure security should unemployment happen. You may find out that you are able to pay most of the household costs just through one person’s income, freeing up a lot of saving room.