Smart Planning to Help You Through Tough Times

The phrase "times are tough these days" couldn't be truer. The number of Americans who are jobless, or struggling financially, seems higher than ever. In April of 2010, the United States Department of Labor reported that the number of unemployed persons was 15.3 million, and the unemployment rate had edged up to 9.9 percent. The rate had been 9.7 percent for the first 3 months of 2010. The number of long-term unemployed—those jobless for 27 weeks and over—continued to trend up over the month, reaching 6.7 million. In April, 45.9 percent of unemployed persons had been jobless for 27 weeks or more.

Given these statistics, it's a good idea to create your own financial safety net, in the event that you are faced with a financial emergency, such as a job loss. Financial advisors suggest having enough savings in an easily accessible account to cover your living expenses in the event of illness, job loss, or other serious situations. Some experts say six months' salary should cover you, yet this amount may differ based on the stability of your industry, whether your area is specifically impacted, and a number of other factors. Once you determine the number of months that make sense for you, you can calculate just how much you can save weekly to meet that goal and then develop a strategy to get there.

The easiest way to start saving is to pay yourself first. To start, you can set a specific amount to be automatically deposited into your savings account each month. That way, you can accumulate money for unexpected expenses with minimal effort while you enjoy the peace of mind that comes with a steadily increasing safety net in place. When you make it automatic, you may not even miss the money and before you know it you've got a nice financial base. Many people report that when money is taken out automatically each month, they never miss it.

If you find that you have too many expenses and are unable to save a set amount every month, try thinking of creative ways to earn cash. Even when you have already cut everything you can, look into ways you can earn more. For example, you can sell unwanted items on eBay, or look for freelance work. Then be sure to tuck that money away in your emergency fund.