by Virginia L. Allen

Created on: December 16, 2008

"There is something fundamentally wrong when one man's unemployment generates another man's wealth.".. Former investment banker Felix Rohatyn.

As a direct result of downsizing, millions of loyal and dedicated workers around the world have lost their jobs. To add insult to injury, many chief executive officers receive huge payoffs in lieu of downsizing the company. With the sudden loss of a steady income, the unemployed persons ability to manage his financial obligations is jeopardized; not to mention his psychological and emotional well being. The effect is felt by young and old alike. The book "Parting Company" says: "Anticipating the loss of a job is like choosing the best way to be hit by a truck. You rarely get to test even the most ingenious idea, because you usually don't see the truck- or the ax- before it flattens you". However, there are some practical suggestions on how to deal with the impact of downsizing.

1.) Recognize that unexpected job loss is reality. So, regardless of your age and experience, plan ahead by living a simple life-style.

2.) Be careful about taking on any large debt for items that are not essential. Live within or below your means, and do not rely on anticipated income from bonuses or regular wage increases. Before making any purchases, determine whether or not it is a want or a need.

3.) Look for ways to simplify your life. Reduce any existing financial commitments, including ridding yourself of debts that are not necessary.

4.) Review your lifetime goals rather they be spiritual or secular and update them. Weigh all decisions against your goals and assess their impact on your newly adopted lifestyle.

5.) Do not envy the lifestyle of others in your community, or circle of friends who are living less frugally. Unnecessary concern over what others have, may engender a desire to have what you cannot afford, luring you into their way of life.

6.) Keep busy. Part-time employment or work at lower wages is definitely preferable to unemployment.

7.) Keep a positive and grateful attitude for what you do have. Unfortunately there are many that no doubt are worse off than you are.

The ideal that there's a such thing as job security no longer exists. The message of today's economy is that there may be no long-term future to rely on. Hopefully, putting these few suggestions to practice, may help you and your family deal with the impact of an unsettled economy, now and in the future.

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