A recent article in the Washington Post reports growing confidence in the US economy even though it will probably be some time before we see a real, live “recovery”.  Call me cynical, but I don’t really think we’ve hit bottom yet.  There are still a few big, snarling economic nasties out there, and some problems of apocalyptic proportions that many in the seats of power aren’t even able or willing to acknowledge.  You might have heard that things are looking up, and perhaps they are for some people.  But this post on the US economy and the online job post market has some cautionary news for those prone to wax optimistic too soon.  The bottom line is that the job market is likely to suck for some time yet.

About two and a half months ago I was “downsized” from one of the best and longest-lasting jobs I’ve ever had.  Those who have known me for a long time know that my career history is littered with jobs that tend not to last long, mostly because the companies I’ve worked for ceased to exist or were pummeled to the point that they couldn’t afford me, so my lifetime career description could be “job seeker” and, in the spirit of putting a good face on trouble, I’d like to thank my erstwhile employers for arranging a very nice sabbatical from my usual “career.”

That said, age and repeated bludgeoning in the work-a-day world made me realize that a good thing couldn’t last, especially given the economic signs and portents that started showing up about four years ago.  I am fortunate to have some very astute observers of the economy as friends, and thanks to the advice of one in particular I tried to prepare for harder times, even though I really didn’t expect to be laid off.

While conversing with some friends of mine I’ve realized that the preparations I’ve been making over the last couple of years might be helpful for people who are facing layoff, or are already there.  I offer the following hints and suggestions as just that, with no guarantee, express or implied, that they will see you through completely or even work at all.  In times like these, anyone who makes a guarantee like that is (a) selling something and/or (b) lying.

Financial Preparations

I have stated in the past that I think personal finance should be considered a martial art.   This is because most of the time it is naive to think of major banks, insurance agencies (especially health insurance), and credit card companies as your friends.  They exist to separate you from as much of your money as possible, period.  They will shaft you at every opportunity.  This does not mean you should be brusque or rude when you deal with them, but keep your eyes open, and always, always assume that they are trying screw you in some way.   More often than not, they probably are.

Here are some things to consider.  Find some ways to reduce your overhead.  I’m not talking about little things where pennies add up to saving the cost of a Happy Meal each month, but big things.  Look for ways to save more money.  One way is to re-examine your insurance (auto, life, health, mortgage, etc.) and see if you can get a plan that costs less while offering comparable coverage.  Do the same with your phone plan.  We found ourselves saving not just money, but a lot of time by canceling our cable TV subscription.  Not everyone will want to do this, but so far, no regrets and it’s been nearly two years since we cut that cord.

If you carry a balance on your credit cards, pay them down as much as you can.  Make this a top priority.  Sell your excess stuff (probably a good idea anyway), take another job, but get rid of that debt.  For the debt you can’t get rid of, contact the card company and ask for a lower rate.  You can actually do this.  Here’s a trick: whatever the representative on the phone tells you, ask to speak with a supervisor.  The rep may try to fob you off with a very modest rate reduction, but supervisors can do better.  The better your credit score, the better your chances of getting a better rate.  Then in a month or two, repeat the process.  It’s amazing what can be accomplished with some persistence.  Contact a credit assistance bureau, even if you aren’t in credit trouble.  They can give you some other options for reducing your debt and protecting or improving your credit score.

Finally, if your credit score allows, open a personal line of credit at a nearby bank as a last resort source of money.  Don’t touch it unless you are one payment away from living under a bridge and there’s no other relief in sight.  Insist on a fixed rate.  It will probably be higher than you’d like, but having that extra padding helps. Besides,  having unused credit will improve your credit score.  You may have to open a small account at the bank, which is fine.  Save some money there anyway, if you can.  If you still have a job and have no serious consumer debt, start putting as much money aside as you can.

Finally, get on a first-name basis with a good accountant who can advise you on basic, practical financial matters.

Practical Matters

Try to anticipate the “unexpected” expenses that could bite you if they hit while you’re unemployed.  Get the car tuned and looked over.  If it needs major repairs, try to get them done while you have the money.  Ditto other necessary items that you would not want to break down during hard times.

Streamline your life.  If you have stuff that is just cluttering up your life, get rid of it.  Sell it or donate it and take a tax write-off.  Extra stuff is a distraction anyway.  It can clutter your mind as much as your garage or closets.  If things get really, really bad, you may have to pull up stakes and move elsewhere.  If that happens, do you really want to be debating whether or not to keep the tea cozy you received ten years ago from Aunt Molly?

Embrace the DIY (Do It Yourself) mindset.  If you aren’t handy with tools, start learning how to use them.  Picking up some basic hand tools and related items can be a very good investment.  If you eat out a lot, learn to cook at home.  It doesn’t take that much effort to prepare meals that are as good as what you get in most restaurants (at least the ones I can afford).  A great way to get into the DIY spirit is to plant a vegetable garden. Even a window box with some herbs will do for a start.  Gardening is also a wonderful way to center yourself.  It sounds hokey, I know, but those who have tried it know what I’m talking about.  Speaking of food, shop at places that sell in bulk or offer low-cost groceries and put some non-perishable food by.

What was said before about fixing what might break applies to your body as well.  If you haven’t had a checkup or been to the dentist in a while, go.  Get those things taken care of.  Given the barbaric state of our national health care system, if you’re poor you are very vulnerable.  You may have to content yourself with “Don’t get sick” as a health care plan.  If you have a health plan and might lose it, stock up on any prescriptions you might need.  Talk to your doctor and see if he or she has samples available.  Sometimes you can get those for the asking.  While you’re at it, check on state and county programs for people who need essential health, dental, or mental health care just in case.

Friends

It is often said that hard times are times are when you discover who your friends really are.  That is very true.  However, it’s actually a good idea to find that out before the bad times hit.  Take some time to refresh old friendships and, if necessary, mend some fences.  I don’t want this to sound like you’re just buttering up people so you can sponge off them later, because they might end up going bust before you do.  My recent foray among the un- and under-employed has reminded me of the value of relationships not just for mutual help, but as essential components of a contented life.  I’ve heard it said that most people tend not to make close friends after age 25, to which I answer that they probably aren’t doing it right.  Be there for your friends, and they will be there for you.  The “rugged individualist” mythos of solo triumph in the face of impossible odds through nothing but hard work is bullshit.  We really are all in this together.

I have received some truly wonderful support from many good friends, some of them of fairly recent vintage.  Hard times remind us of the inestimable value of community and association.  I am hopeful that this “downturn” revives a sense of community and social cohesion that has lacked in recent years.

The Next Job

In a recent editorial in the Los Angeles Times, Barbara Ehrenreich contended that “Trying to find a job is not a job”.  It’s a thoughtful, provocative read and I recommend it highly.  She points out that the received wisdom of spending all your time looking for your next job may be why “…13 million people have accepted joblessness with nary a peep of protest.”  She argues that the discontent of the unemployed that would usually go into agitation for universal health care or real economic reform or unionizing is frittered away in looking for the next job.

Now I can see the other side of this; not having a regular income is scary as hell.  Existentially so.  But you also have to be realistic and smart about it.  Yes, you brush up your resume, make a few different versions, and you post it in places where it’s likely to be seen.  You can also waste a lot of time on low- or zero-probability longshots when there just aren’t any jobs out there.  Ehrenreich’s article has some sobering things to say about how jobs overall tend to pay less in addition to being scarcer and argues that maybe the growing jobless hordes need to be gunning for bigger things than the next stint as a wage slave.  So without making a pseudo-job of it, do network and be smart in searching for work, but be ready to shift your thinking about what you are willing to do, which leads us to the last item.

Living Deliberately

One of the worst things you can do to someone is give him or her lots of time and nothing to do.  It’s one of the downsides of retirement or prison.  But “time off” also brings with it a freedom, even if it doesn’t always feel that way.  Once you get past some of the fear, not working or having a regular work schedule can be an opportunity for reflecting, for reinventing yourself, for considering your place in the world.  You can read that book you’ve always wanted to read (or write!), brush up on some beloved but neglected activity, and refine your skill of living in the moment.  As Thoreau advises, “Simplify, simplify!” You may find that a different pace of life and living suits you better.

It is also an opportunity for you to be a pain the ass to the powers that created this mess, as Eherenreich correctly points out.  There are movements and changes afoot that need support.  There is a huge “transition industry” of people to help you get the next job for less money, while doing little or nothing to harness the creativity and vigor of so many people who are now free to make things better.  There is some truth to the old bromide that when one door closes another opens, but sometimes you have to kick it down.