Being Prepared Financially In Case Of A Layoff

America’s economy has been slowing down. Even before the events of September 11, 2001 organizations were analyzing their financial positions and looking for ways to reduce expenses. Layoffs have been taking place nationwide and economic forecasters predict they will continue. If you are laid off, will you have the financial resources to hold you over until you find another job? Having a financial plan now will help you later in the event of a layoff.

• Take an inventory of your monthly financial needs. Figure out what it takes to get through the month. Divide your expenses into two categories: essential and nonessential expenditures. Tally up your required expenses like rent or mortgage payments, insurance, food and utilities to determine what you need as a bare minimum to get by each month.
• Start an emergency fund. Try to sock away enough money to cover your necessities for three months. Put it in a savings account with a good interest rate. If it turns out you don’t need to dip into your emergency fund, you’ll be well on your way to creating a nice nest egg for you and your family.
• Trim nonessential expenses. Temporarily discontinue monthly expenditures that don’t fit into the essential category. It's better to cut back on nonessentials for a short time, rather than going into debt by paying for them on high interest credit cards.
• Take advantage of benefits while you have them. If you know a layoff is coming, make doctor and dentist appointments now. If you're eligible for an annual physical or dental cleaning, get them done now while you're covered by health insurance and dental insurance.
• What is the state’s policy on unused vacation and personal days? Call your department’s human resources representative to find out whether you can get paid out for unused vacation or sick leave. If so, you may want to consider taking the money rather than squeezing in days off before you leave state service.
• Take advantage of unemployment benefits. Remember the money that has been taken out of your paycheck over the years for unemployment insurance? You probably never thought you’d see it again, but it is available for you. File a claim as soon as possible because it may take a few weeks before you receive your first check. Remember that unemployment pay is only a portion of your paycheck, so think of it as a helping hand until you begin another job.

Call Your EAP
If you or someone you care about needs help dealing with potential job loss, you may wish to contact our Employee Assistance Program (EAP). EAP counselors are available 24 hours a day, every day of the week, to provide confidential assistance at no cost to you. Contact our EAP at 1-800-769-1989. Information and other resources are also available online at www.maine.gov/bhr/sos and www.maine.gov/beh