5 Steps to Prepare for a Potential Layoff

In such an uncertain economy, it can be difficult to stay positive, and certainly almost impossible to not fear a potential layoff. With more and more companies closing their doors or dramatically downsizing due to the recession, many otherwise marketable employees are being subject to layoffs. If you like many, you probably fear the possibility of being laid off yourself. As long as you start preparing yourself for a potential layoff, the better off you will be if and when the layoff comes. Here are the best five things you can do now to prepare for a potential layoff:

1. Brainstorm Alternatives: The first action you should take if you are possibly facing a layoff from your job is to start brainstorming alternatives. Start looking around at job sites, consider what job you would do if a layoff happened, and who might be hiring. It may be just the right time to start thinking about a career change altogether if you have been unhappy in your current one for some time.
2. Make a Career Plan: Next on the list, is to start thinking about how you would reach your career goals. Once you have a position or industry in mind, ask yourself what types of skills and experience you will need and also, what actions do you need to take in the short and long term to make your career a success? Make a list and workable plan with attainable goals. This way, you will know what to do if you get laid off.
3. Take Stock of Your Finances: One of the most important things to start evaluating is your current finances. In the event that you are laid off, you can file unemployment, however, will you be able to pay your bills on this, and for how long? Now is the time to start taking stock of how much debt you owe, how much savings you have, and what your bills add up to. This will give you an idea of how to proceed in order to be able to make ends meet once unemployed.
4. Use Credit Card Caution: Though it would seem an obvious precaution when facing a possible drop in income to not use credit cards extensively, it is often overlooked. It is best to not only stop using the credit cards as much as usual, but also to pay as much off balances as possible. This will either cut out a monthly payment or make the minimum payment that much less, so when you have a smaller income-you won’t be stressing to make this payment.
5. Network: Lastly, it is crucial in order to make the transition from employed to laid off to employed again as smooth as possible, to start networking for your next job now. You never know when the layoff could happen and the more people you have in your corner helping you to find your next means of income, the better.