The recommendations for military base closings have been released and the news is not good. If the recommendations are accepted, you will lose your job. So what do you do? Hope for the best, and prepare for the worst.
There is a benefit to this situation. Unlike many individuals who suffer the loss of employment, you have advance warning. This is an opportunity to prepare yourself and your family. Use this time to create a financial plan.
The importance of a budget can not be stressed enough. A budget is a tool that helps you track your income and expenses, giving you a snapshot of your overall financial picture. Know where your money goes. Identify areas where you can cut back. Knowing your financial obligations will be critical while planning for the loss of income.
The next piece of the planning puzzle is net worth. Your net worth is what you would have leftover if you sold all of your assets (what you own) and used them to pay off your liabilities (what you owe). This will require sitting down and making a list of those assets and liabilities. This may sound like an overwhelming project, but it is important that you know exactly where you are financially. Knowing your net worth is essential for planning for an emergency such as unemployment.
Ideally you will have a rainy fund that will cover six months of living expenses. If not, don't panic. Start putting a portion of your paycheck aside each month. Putting away a little money now will provide a financial cushion if you don't find a new job right away.
The last piece of advice is start paying down your credit card debt. Getting rid of credit card payments will help your emergency fund go farther. It will also save you money on interest, money that you can add to that fund.
You will find forms on this website to help you complete a budget and net worth analysis as well as set financial goals, such as setting up an emergency fund.
It is never easy to find out you are losing a job. But you do have an advantage over the worker who gets a pink slip on Monday and watches the factory get boarded up on Friday. You have time. Use this time to get control of your finances so that you will be prepared. And in the event that your base is spared, you will have significantly improved your financial picture.
Leslie Linfield is a national expert on adult financial literacy education and the consumer credit counseling industry. She has advised governmental, educational and non-profit organizations alike, and she has been quoted by the New York Times and Wall Street Journal as an expert on budgeting and consumer credit. She has also presented literally hundreds of seminars and lectures on personal financial management.
disinfecting cleaning services Arlington Heights ..Would you know what to do if you suspect that... Read More
It is estimated that we, as consumers, waste an average... Read More
With the A-level results coming out, the long wait for... Read More
Next to our physical health most of us are primarily... Read More
Now that we are in the month of June I... Read More
Just about everyone has a checking account. Checks present easy... Read More
Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More
ID theft is a major consumer concern, though there is... Read More
Address labels are many things to many different people. If... Read More
On the other hand, there are those people who are... Read More
Have you ever stopped to think about how your "mood"... Read More
Most of us, especially those of us who have debtor's... Read More
Get Access to Realistic profitable strategies & discover the mindset... Read More
This investment retirement account (IRA) is useful to you as... Read More
What is it about being frugal, why do it at... Read More
Investing is a subject a lot of people don't want... Read More
Your food budget is the most flexible area of your... Read More
Doesn't it seem like the only impressive numbers we've seen... Read More
What is finance and what do you need to know?... Read More
Finding a stable and secure income that will come year... Read More
With prices increasing all the time, saving money can be... Read More
There is a new bill that is being passes, it... Read More
I have been a loyal user of Quicken(R) for more... Read More
Debt levels are at an all time high in the... Read More
If you've developed a household budget to get your spending... Read More
bathroom cleaning service Mundelein ..I thought I was through with exams when I finished... Read More
I'm still amazed every time someone comes to me complaining... Read More
Well, dang! From what I've heard and read, it looks... Read More
On the other hand, there are those people who are... Read More
Women are charged more for dry cleaning services. Don't fume,... Read More
As a parent you are bound to face a few... Read More
Most Americans have been brought up to be concerned about... Read More
Women have a love/hate relationship with money. Most of us... Read More
The cries are heard from the distance, "I need help... Read More
You have probably accomplished a great deal with your life.... Read More
How many drawers did you have to look through to... Read More
Many people graduate from college owing thousands of dollars in... Read More
An avid cyclist and bike racing fan, I sit transfixed... Read More
Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More
Have you ever thought about what you are going to... Read More
What is finance and what do you need to know?... Read More
Today many women are struggling with debt and it's even... Read More
With interest rates being at an all-time low, I can... Read More
I think most of us have at some point in... Read More
Are your financial muscles well toned and healthy or flabby... Read More
Here are some tips that can help you save money... Read More
Have you ever stopped to think about how your "mood"... Read More
For months, we were trigger-swipe happy, putting our groceries, clothes,... Read More
Here are ten steps you can follow to help improve... Read More
Recent findings from the Educational Policy Institute indicated that the... Read More
Personal Finance |