Financial Contingency Plan

Q: I was recently laid off from my job and am trying to prepare a smart financial contingency plan until I secure another position. My savings can float me comfortably for 3 months but what you do I suggest after that point? I am not sure if it is better (or worse)  to tap into my retirement funds or survive on credit cards. Please let me know if you have any tips that apply.

I would start with focusing on making your expenses last more than 3 months.  You can do this by reducing some of your fixed expenses such as late fees, bank charges, newspaper delivery and cable tv.  Then give yourself a weekly amount to live on so you are clear about how long your savings will last. 

Before you start dipping into your retirement funds or charging up a storm, consider looking for freelance work in your industry or even short-term consulting projects.  It will keep you present in your industry and will bring in some temporary income.  You can also look for a part-time job in a place you like to spend time in; such as a yoga studio, knitting store or sporting goods store.

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