Downsized...Now What? 6

Here are some helpful tips if you or someone you know has lost their job. It's time to get you and your finances in order. Plan your work and work your plan, Working Diva. No matter what your situation, there are great things in your future. Love ya!


What to do over the next few weeks (source)
• Prioritize your bills. Mortgage and utilities should be paid first.

• Manage your debt. If money is tight, you may need to make just the minimum monthly payments on your credit cards until you get back to work. If that's a problem, try to negotiate a payment plan with your creditors. They may be willing to reduce your minimum payments or waive interest until you're back to work.

• Review your insurance policies. Contact the insurer if you're having trouble paying premiums. Some companies will give you a 30-day grace period.

• Avoid canceling your life insurance. If you let your policy lapse, resuming coverage later could cost more. You'll probably have to undergo a medical exam, and you could be denied coverage if the physical reveals health problems.

• Avoid taking money out of your 401(k) or individual retirement accounts. You'll have to pay taxes on money taken out, plus a 10% early-withdrawal penalty if you're younger than 591/2.
Selling stocks or funds in a non-retirement investment portfolio won't trigger those penalties, but it involves other issues. Most stocks and funds have lost money this year, so you'll probably end up selling at a loss. If you really need the money and have exhausted other options, sell judiciously, Stives suggests.

• Give yourself a break. Many workers blame themselves for layoffs, even though the job cuts had nothing do with their performance. Kristen Payne, 36, says she was "beyond depressed" several years ago when her employer, a Houston-based Internet start-up company, let her go because it wasn't making enough money. "I equated it to being fired." she says. "It was just terrible."

Her story has a happy ending. After being out of work for 3 months, she found an even better job with a printing company. She's more careful with her money now: She usually pays off her credit cards and saves up for big purchases. Her advice to the newly unemployed? "You have to look forward," she says. "You can't beat yourself up. It's just business."