Examining your finances and preparing contingency budget

If you fear a layoff is on the horizon, now is the time to get your finances in order. Even if you are lucky enough to get a severance package or qualify for unemployment benefits, neither is often enough to pay the bills during the period you are out of work.

Consider consolidating bills so you have fewer monthly payments and put a halt to any major purchases you had planned until you are solidly on your feet again.

Even if you have never had to make a budget before, now is the time to do -- just in case you need to get buy on a much smaller paycheck for some period of time.