Everyday Cheapskate: How to Beat the Job-Loss Blues: A Guide to Surviving the Unexpected

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.

Even if you're convinced your job is solid, statistics say otherwise. Most of us will change careers a few times before we retire. So whether you're feeling secure or sensing storm clouds, it's time to get proactive. Don't panic, but don't get too comfortable either. Start living as if you've just been handed a six-month notice. Here's how to prepare yourself mentally and financially so you're ready for whatever comes your way.

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.

Having that money tucked away gives you breathing room. If the worst happens, you won't be forced to take the first job that comes along just to keep the lights on. You can afford to be a little picky, to find something that's a good fit, rather than just a stopgap.

TRIM THE FAT NOW

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.

Take a good look at your spending. Are there subscriptions you don't use? Could you cut back on eating out? Do you really need all those streaming services? Small changes can add up to big savings over time, and those savings will make a huge difference if you find yourself without a paycheck.

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.

Reducing your debt now will make things a lot easier if you find yourself facing a layoff. It means fewer bills to worry about, less stress and more flexibility when you need it most.

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.

It's easier to think about what you might do while you still have coverage than to try to make that decision under pressure. Do your homework now, so you'll be informed and ready to make a choice if the time comes.

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.

But don't stop there. Make it your business to know what's going on "out there" in the job market. Keep a mental file of where you'd send your resume and where you'd start networking if you needed to find a new position. This way, you won't be caught off guard if you do find yourself out of work -- you'll already have a plan in place.

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.

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Mary invites you to visit her at EverydayCheapskate.com, where this column is archived complete with links and resources for all recommended products and services. Mary invites questions and comments at https://www.everydaycheapskate.com/contact/, "Ask Mary." This column will answer questions of general interest, but letters cannot be answered individually. Mary Hunt is the founder of EverydayCheapskate.com, a frugal living blog, and the author of the book "Debt-Proof Living."