Across the world, job situation remains to be critical. With the focus on cost cutting and savings, lots of companies across the industries are laying off employees in the bunch. One to be affected most is normally the one who earns a lot in the ladder. Management generally will like to bring in a person who demands less for the post even foregoing the experience that current person will have. It is tough to manage the family when you have been laid off from the work all of the sudden. Not many companies provide time for you to make the move. It is mostly given in the last minute only. It is better to be prepared for the eventuality which may happen at any point of time. You can survive even without huge savings in your account.
Ways to survive
First and foremost way is to refinance the house. Refinancing is way better than going for mortgage. You can use the equity to pay the bills. Next option is to withdraw from your 401K. It is not popular since, you may need to penalties and tax for the early withdraw of the amount. But the options you have is very less and you have to use it. Other option is to take personal load to take care of mortgage payment and other bills payment. But again, if you don’t replay on time, it will make a dent in the credit score.
One thing you need to do as soon as you have been sent off from the job, consult with your finance institutions and inform about the situations. Some of them will understand the situation and will arrange for alternative plans so that both of you won’t get hit by the situation. It may help you to skip some month payment but won’t be helpful in long term aspect. Other option which may be the last one is take help of local churches and organizations which may help you for some time to overcome the situation. Also some organizations may give you temporary job when they have need and pay for it which will help you to take care of your finance. Also, state and federal governments have many programs to assist people like you. You can make use of those arrangements until you get a job. These kinds of situations won’t be continued for long time. Till the situation becomes better, you can take help like this.
It is always terrible position to be in without a job and very less savings. It is always better to have healthy savings so when there is a bad time, you can ride over that easily. Always save some money for the future which will help when the need arise.