\n Federal workers\u2019 experiences this year with layoffs and furloughs may seem extreme. But to anyone who works for a living, they\u2019re a reminder that when you see signs that your job may be at risk, it helps to create a financial plan.\n <\/p>\n
\n US government workers were laid off in droves during the first several months of the Trump administration, and hundreds of thousands<\/a> were recently furloughed without pay due to the government shutdown. Last Friday, Russell Vought, head of the Office of Management and Budget<\/a>, announced a new round<\/a> of mass layoffs<\/a>. And in a court filing that same day, the government indicated additional agencies are considering letting yet more people go.<\/a>\n <\/p>\n \n Layoffs may be conducted differently elsewhere, but it\u2019s up to employees everywhere to learn how to protect their finances.\n <\/p>\n \n How long you can support yourself between jobs depends on understanding your spending needs and the likely resources you\u2019ll have available should you ever be laid off.\n <\/p>\n \n Figure out how much you spend every month and on what specifically. It\u2019s key to grasping which expenses are essential and which are discretionary (and can be cut if things get tight).\n <\/p>\n \n \u201cMake sure you\u2019ve got the hierarchy of needs \u2014 food, shelter and health care \u2014 covered. It\u2019s about reprioritization<\/a>,\u201d said Stacy Miller, a certified financial planner and CEO of Florida-based Bayview Financial Planning. That includes which debt payments need to be paid in full versus which can be adjusted if (and only if) things get very tight.\n <\/p>\n \n For instance, prioritize paying your mortgage over a credit card bill, Miller said. \u201cDon\u2019t get evicted.\u201d\n <\/p>\n \n If possible, though, try to pay the minimum amount due on your credit card every month so you don\u2019t incur late fees, higher interest rates and a lower credit score.\n <\/p>\n \n Alternatively, if you\u2019re in a position to pay off some of your debt now, future you will be relieved. Pick a pay-down strategy <\/a>that will give you the most satisfaction. For instance, Miller said, \u201cStart with your highest rate debt or your highest numerical debt.\u201d\n <\/p>\n \n Emergency funds can reduce your stress.\n <\/p>\n \n The standard advice is to have anywhere from three to 12 months of living expenses in a high-yield savings account or other easily liquidated income-earning account.\n <\/p>\n \n If your emergency fund is small or nonexistent, try setting aside some savings every time you get paid. And if you\u2019re working for an organization where layoffs seem very likely, you might pause your contributions to a workplace retirement plan for a few paychecks and redirect that money to an emergency savings account. (Alternatively, find out if your employer allows you to tap your 401(k) for emergencies<\/a> without any penalties.)\n <\/p>\n \n Also, consider what other emergency money might be accessible. For instance, if you own your home, you might get a home equity line of credit. But only tap it if things get critical.\n <\/p>\n \n Check what, if any, severance policy your employer has. Estimate how many weeks or months of pay you might receive and how many months your health benefits would be subsidized.\n <\/p>\n \n Next, estimate how much you might get in unemployment benefits. Each state has its own formula, so check your state\u2019s labor department site<\/a> to see what guidance they offer and how long it might take to get your first check after applying.\n <\/p>\n \n Also, consider what other income streams you\u2019ll have, Miller said. Do you have income from a rental property or dividends and interest from a brokerage account? Does your spouse earn money? Is there a second job you could pick up for some extra cash if necessary?\n <\/p>\n \n Seek outside help when making a layoff plan if you\u2019re unsure of the best options for your situation.\n <\/p>\n \n If you can\u2019t afford to pay for that guidance, there may be nonprofits that can help, Miller said. For instance, SAVVY Ladies<\/a> provides free financial education to women. And if you belong to any unions or houses of worship, those organizations might offer free guidance and other assistance.\n <\/p>\n \n If you\u2019re laid off, communicate your situation to your creditors and utility providers<\/a>. There are many adjustments they can make to your bills to relieve some of your financial stress.\n <\/p>\n \n For federal workers and military members, there is a wide range of resources for help. For instance, many banks<\/a> and credit unions<\/a> are offering various forms of financial relief to furloughed workers \u2014 from fee waivers to 0% paycheck assistance loans.\n <\/p>\n \n Members of federal employee groups like the National Active and Retired Federal Employees Association (NARFE<\/a>) may offer information and assistance to laid off workers, as can groups like Army Emergency Relief<\/a> and Blue Star Families<\/a>.\n <\/p>\n