Yet how many of us plan for this eventuality? Very few, I suspect. But nowadays, there are good reasons for doing so.

Depending on your age and financial position, the impact of unemployment can range from a minor interruption in lifestyle, to a major life changing experience as well as inflicting damage to your personal relationships.

Most of us will also have to learn to live with a lower level of income when we find

So, let’s start to plan for it! Here are a few well thought out tips to reduce the impact if unemployment comes your way!

1. Live your life with what you have, not what you can get

 It is very easy to borrow money when you are earning. But what you borrow has to be paid back – not easy when you are unemployed!

2. Don’t live on an overdraft

 Your bank will automatically give you an overdraft when you are in employment and review the level every three months. As long as you are earning you are ’eligible’ for increasing overdraft facilities. When the money stops, or drops to a much lower level, after three months the banks want their overdraft back, and all in one go! Talk about kicking a man when he is down!

3. When borrowing is necessary, protect yourself.

 Most of us need to borrow money in our lives to pay the mortgage, car loan, etc. Take out insurance to cover monthly payments for at least 12 months should you lose your job!
(Tip: Check how many months you have to wait before the protection starts to work).

4. Refuse any attempts to increase your credit card limit unless you ask for it first

 Credit Card companies are notorious for increasing your borrowing limit even though you have not asked them to do so! When you are unable to pay them because of unemployment, watch their attitude change!

5. Don’t allow a ’parent dependency’ to develop in your children as they grow older

 It is natural for children to expect parental support up to the time they complete their full time eduction. Unfortunately, many children expect this to continue when they reach working age. Take steps to ensure that they understand the relationship between earning and spending money. This is better done earlier rather than later!

6. Invest in your own future

 Survival spending – i.e. spending what you earn each month – is a formula for disaster if unemployment strikes! Try to save at least 5-10% of your income each month.

7. Plan to retire at 55

 Look for retirement invest funds which you can cash in at 55 (or earlier) if you have to. One of the worst times to be come unemployed is in your mid 50’s. Your pension could become your life saver!

8. Keep your skills up to date.

From a technological point of view, young, recently qualified graduates have much more to offer employers. It is far more difficult to to find a job in later life if your skills are out of date or are no longer required.

9. Work hard to keep your morale high

The biggest problem you will face when you become unemployed is loss of belief in your personal worth and self-confidence

 Take personal responsibility for what has happened to you. Don’t blame others.
Keep yourself busy. Apply for at least one job per working day.
 Phone companies who may need your skills, offering them part time or temporary fill in work for absent employees.
 Check for training possibilities.
 Do some voluntary work. Interaction with other people is essential to your self esteem.
 Keep fit by exercising more and eating less!

10. Re-evaluate your life

Ask yourself these questions and answer them honestly:

Do you need to make as much money as you previously earned?
 Was your previous job demanding too much of you? Do you really want to go through that again?
 Have your personal relationships suffered as a result of overwork and stress? Maybe now is the time to rebuild them before you lose them altogether.
 What can you alter in your personality to change things for the better?

Unemployment gives you time to reflect, to evaluate where you are and where you want to go. Used constructively, a period of unemployment can be very beneficial as long as it does not last too long!

On average, analysts say that it can take up to 18 months to find another job which suits your experience and knowledge. Most of us will also have to learn to live with a lower level of income.

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