Advantage Newsletter - November 2008

Economic Barometer - Ways to Prepare for the Unexpected

During these trying economic times, we are faced with uncertainty and uncontrollable circumstances. As the economy has worsened over the past several months, concerns about how we as individuals and our families could be affected have multiplied. The unemployment rate is up, and claims for unemployment benefits are at a 16-year high. With the media delivering news about companies announcing job cuts and unemployment’s effects on a frequent basis, many people are left with no choice but to think about if they’re at risk for losing their job. This is a time when job security can be questionable, which can make financial security more problematic.

With unemployment being a major concern in our current economy, we would like to provide you with meaningful advice on preparing for an unexpected job loss:

1. Engage your entrepreneurial spirit to expand your social network. You’ll have a head start on lining up a new job.
2. Retool your spending habits now. The more cushion you can add to your savings early on, the easier it will be to accept less of an income stream.
3. Prioritize your expenses, and create an action plan for paying your bills. This will help you pinpoint the biggest potential problems and where you need to focus your attention.
4. Refrain from dipping into your 401(k) or individual retirement account. If you are in need of money to pay bills, consider options other than using your retirement savings.
5. Make arrangements for health insurance in the event of a job loss. Research your spouse’s insurance plan eligibility.

In a thriving or soft economy, it’s always important to be prepared for the unexpected. If you take the proper steps now, you’ll be at an even greater advantage when the economy recovers.