Six Things to Do Before You Get Laid Off

The recession is coming! The recession is coming and it might be after your job. Fortunately, there are a few things that you can do to protect yourself and your family.

1. Build Up Your Cash Reserve - Do you have enough in savings to survive for six months without working? If you don't, you may want to start boosting your savings now while you still have work. One way to increase your savings is to trim a few luxuries. You might consider dropping your cable or satellite movie channels, curbing your daily coffee habit, and getting your haircut a little less frequently. Then, have your bank automatically transfer the amount of money you'll save into your savings account. If your need to establish a cash reserve is really pressing, you could drop your cable entirely. This is also the time to open new revenue streams by writing articles and getting extra jobs. You can also turn your trash into cash by running online auctions, having garage sales, and consigning used items. Finally, if you know that a layoff is in your immediate future, you might even temporarily suspend your 401K contributions in order to redirect cash into savings. If you mess with your 401K, have a definite time period in mind and make sure you return to saving for retirement as soon as possible.

2. Look at Credit Protection Options for Your Debts - Many banks offer programs where you pay a small amount of insurance each month and your loans continue to get paid if you get laid off involuntarily. When you job is safe, these credit protection insurance schemes look like a real gimmick. However, when your job is in jeopardy, credit protection seems like a very nice thing to have. You'll have to examine the plans offered by your bank carefully. Many require you to be enrolled for a certain amount of time (often six months) before you can use the benefit. Plans often cap the amount of money that will be paid towards any debt. In addition, money spent on credit protection is unavailable to help you build up your cash reserve or pay down debts. Still, the peace of mind these programs provide may be a real comfort.

3. Buy an Interview Suit - A nice suit, shoes, a shirt, and a tie for a professional job interview are not cheap. However, they are nice to have well before your job interviews are schedule. Otherwise, you'll have to run around building up an interview warddrobe on short notice and you might also have to pay for rush tailoring to get your clothing ready for a big interview. The night before a big interview is not the time to find out that your pants are too tight, that your old sport jacket won't button anymore, or that neckties have changed since 1987.

4. Get Your Resume Together - In the modern American workplace, it is important to keep your resume updated for instant action. When you are still on the job, you can update your resume while your accomplishments and projects are still on the forefront of your mind. After a few months of unemployment, the meanings of the complex acronyms used in your office may elude you.

5. Expand Your Credentials - If you need a professional certification, a specific type of experience, or a big accomplishment at work, get it done now. You won't have many professional accomplishments as an unemployed person. In addition, working hard to add to your personal value and ability to contribute to your employer may help you survive a layoff.

6. Line Up Your References - If you need professional references from your workplace, it is easier to ask potential references and exchange personal information with co-workers while everyone is still at work. It's easier to exchange this information once you have warning about a potential lay off. Otherwise, you will have to be discreet so that you don't start a rumor that you are on your way out.

Ultimately, if a company decides to reduce headcount due to improve their financial bottomline, don't dispair, all you can do is fight hard to keep your job and prepare for the worst.