|
So many people have lost their jobs that almost all of us know someone who
has been laid off. You can understand the worry they have about making
ends meet. It is like having the rug pulled out from under your feet.
Certainly you can not take anything away from the hardships that being
unemployed can bring. Being caught off guard with that news makes it even
harder though. I read a story online recently though that represents many
of the stories I have heard lately. People who are laid off, try to live
the lifestyle they were living while employed, and end up using their
savings and credit cards. Yes, there are sometimes circumstances beyond
our control, but generally speaking we must constantly prepare for
hardships that are guaranteed to eventually find us so we are in a
position to preserve our savings and live without credit debt.
I actually started planning for
unemployment about 6 months ago when I saw
so many other people losing their jobs. If it was going to happen to me I
figured I didn’t have a day to lose in getting myself as ready as
possible. The first two things I focused on were education and budgeting.
In preparing for my own potential layoff the first thing I wanted to do
was get the facts. What could I expect to happen? What was the worst case
scenario? What was the best case scenario? Knowing the facts would let me
make better decisions now while preparing for a potential layoff.
Secondly, I wrote two new budgets. The first one reflected how I would
live on just unemployment compensation. The next was how I would live on
UC and a part time job. I knew my current lifestyle would have to be put
on hold. There have been so many stories about the unemployed falling into
the traps of not adjusting their lifestyle to match their reduced income
and maintaining their lifestyle by burning their savings and living on
credit. My goal was to preserve my savings as much as possible and
certainly avoid situations that would tempt me to use loans or credit.
I have said it so many times. You WILL run into financial problems. How
you have prepared for them and how you will handle them will make the
difference in your long term financial success. Throwing your hands up and
letting life determine what happens will almost surely mean disaster. You
have to aggressively take control and make good decisions regardless of
what your financial situation is – laid off or working!
At my workplace there is a woman whom I really respect. I think she has
demonstrated an excellent attitude in reevaluating her circumstances and
taking the punch out of the bad situation she found herself in. She was
unexpectedly laid off from her position in a department other than mine.
After she was laid off an opportunity came up in my department for someone
to work part time. I got a hold of her and asked if she was interested in
working part time. She was. The reason she was is that in Pennsylvania you
are allowed to work a part time job that pays you up to 40% of your
unemployment benefit without losing any of the money unemployment
insurance pays you. In her case she could earn 40% of her benefit from a
part time job and still collect 100% of the unemployment benefit thus
giving her nearly the same amount of money she was making while fully
employed! Good for her! She has put herself in a position to preserve her
savings and avoid living on credit. A great example of making good
decisions during a financial crisis.
http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/true-tale-from-middle-class-to-unemployed.aspx
|