Preparing for a layoff

(WDTN) - • Establish an Emergency Fund - Set aside enough money to cover your basic living expenses for at least three to six months.

• Cut Unnecessary Expenses In Advance - If your emergency fund isn’t enough to cover at least 6-12 months worth of expenses, it would be wise to cut back ahead of time. (i.e. Cell phone plans, cable, insurance deductibles, credit card debt)

• Create a plan for your bills - If you believe you will have trouble making the payments on your bills, get help sooner rather than later. You can try calling your creditors to work out a lower payment arrangement on a temporary basis. It can be very helpful to get the assistance of a non-profit credit counseling agency.

• Extend your health care coverage - If possible, get family coverage under your spouse’s policy. Or, you may be eligible to extend coverage under your ex-employer’s group policy for 18 months after you’re laid off. You have 60 days from the date you were laid off to apply for COBRA. The American Recovery and Reinvestment Act temporarily reduces the premium for COBRA coverage for eligible individuals. Eligible individuals pay only 35% of the full COBRA premiums under their plans for up to 9 months.

• Update your Resume - Make sure your resume is up-to date.

• Network – Approximately 70% of jobs are not advertised so knowing the right contacts in the industry you are in or want to move to is critical. Don't wait until you lose your job to start networking. You can also used social media sites like Linkedin for maintaining and extending your professional networks.

• Family Plan & Support - Everyone in your family will be impacted directly or indirectly. Family can be your best form of support and talking about these issues ahead of time will reduce the stress on relationships when/if times get tough.