Job redundancy, downsizing, cutbacks, layoffs—whatever you call it, when that dreaded pink slip lands on your desk, it’s about as welcome as a root canal. But living in constant fear that your job could disappear any day now? That’s like waiting for a surprise party you really, really don’t want.
Your Financial Safety Net
Every household needs a stash of money set aside for when the income stream dries up. This isn’t just a rainy-day fund—it’s your lifeline, and it should be enough to cover all your bills and keep food on the table for at least six months. Trust me, if you find yourself out of work, those six months will feel more like six minutes.Trim the Fat
Let’s be honest, if you knew you were going to be laid off in six months, you‘d probably start cutting back immediately. But you don’t need to wait for the official word to start trimming the fat. Consuming less, doing less and buying less are all ways to reduce your expenses, and every dollar you save now is one less you’ll have to worry about later.Lighten the Load
Credit card debt is a burden even in the best of times. When times are tough, it can feel like trying to swim with a cinderblock tied to your ankle. The best time to deal with debt is when you’re still bringing in a steady income. Stop adding to it, and start paying it down as quickly as you can.Plan for the What-ifs
Health insurance is one of those things we take for granted—until we don’t have it anymore. If you lose your job, your options for health coverage are pretty limited. You can stay on your current group plan and pay the premiums yourself (thanks, COBRA), enroll in your spouse’s plan, buy individual insurance, use a state-sponsored plan or—worst of all—go without.Keep Your Resume Ready
Do you know where your resume is? If the answer is no, it’s time to change that. Keeping your resume up to date should be a regular habit, like changing the oil in your car or swapping out the batteries in your smoke detectors. And don’t keep it on your work computer—store it at home, where it’s safe from prying eyes.Make Yourself Indispensable
When a company starts handing out pink slips, it’s rare for everyone to get one. More often than not, some employees are just too valuable to let go. Your goal should be to become one of those employees. How? By learning to do more than one job. “Border-crossers”—those who can handle tasks across different departments or roles—are more valuable than single-task workers.Look for ways to increase your value. Take on extra work, learn new skills and make yourself indispensable. Be the employee the boss doesn’t have to worry about—the one who gets things done without needing constant supervision. If you can do that, you'll be much less likely to find yourself on the chopping block when layoffs come around.
Losing a job is never easy, but it doesn’t have to be the end of the world. By preparing now—building a financial safety net, reducing debt, planning for health insurance, keeping your resume up to date, and making yourself indispensable—you can soften the blow and put yourself in a much better position to weather the storm.