How to plan for a layoff

Nobody wants to think about a job layoff.The sad reality, though, is that it happens - and it's happening more and more everyday.

More businesses are laying off workers due to low demand, financial crisis and the recession.

If this hasn't happened to you then be thankful, but don't be complacent. A layoff could happen at any time and it's best to be prepared.

Caution is the best course of action in a depressed economy so, hope for the best but prepare for the worst.

Here are a few tips to help you:

1. Start saving every penny. Save your spare change, save every bit of extra income that you get.

2. Cut your expenses. Cut off the cable TV, cut back on your phone or Internet bills, cancel your gym membership or other memberships. Cut back to bare bones in every way. Don't go anywhere unnecessary - this will save gas and wear and tear on your vehicle (or the cost of public transportation). Stop eating out, start shopping at thrift stores, see if items you already have can be used for your needs (instead of buying new).

3. Stockpile. As you have extra money (and when you see them on sale or have a coupon - bonus if they're on sale AND you have a coupon!) buy necessary items to stockpile: Canned goods, toiletries, household items are all great candidates for stockpiling.

4. See what help is available if the worst-case scenario comes about. Will you be able to collect unemployment? If so, when? Will there be job assistance or retraining available? Will you qualiy for food stamps, energy assistance, medical assistance through your state? Do you have insurance on your loans that would make the payments in the event you lose your job?

5. Pay off your debts and don't incur any more. I know this is hard, but don't try to incur more debt - it'll only set you into a downward spiral. Work on paying off your credit cards one at a time - starting with the card with the highest interest. Stop using your credit cards - freeze them into a block of ice if you must - but don't use them anymore!

6. Work on a cash-only system. Don't write checks or use your debit card for 30 days - pay with cash only. You might be surprised at how much less you'll spend when you can only use the cash you have on hand or make a trip to the bank to get more cash. Even if your job (or your spouse's) doesn't end in a layoff, putting even one of these tips into action will make a difference in your budget - and your way of thinking.

Current projections from experts are saying that we're going to be in a recession for at least another year - if not more - so now's the time to dig in and plan to survive.