How to Survive Losing Your Job

Worries about job loss always seem to accompany a sinking economy. Will you know how to survive financially if you're next in line for a pink slip?

Last week, the U.S. Department of Labor reported that unemployment increased to 5.5% from 5% in May, representing a fifth consecutive month of job loss. The economy lost a total of 49,000 jobs last month alone.

The trend doesn't appear to be slowing, based on the flurry of recent layoff announcements. Borders(BGP Quote) recently announced its plans to cut 275 corporate jobs, while Ford(F Quote) will reportedly cut 15% of its salaried work force. UAL's(UAUA Quote) United Airlines announced plans to permanently ground Ted, its budget airline, and lay off many of its workers.

If you're among the unlucky crowd that isn't expecting a paycheck this week, you certainly have a problem.

Hopefully, you've saved an emergency fund to alleviate your cash flow problems. But if you're among the estimated 76 million Americans who don't have savings outside of retirement funds, taking serious preventive measures can help spare you financial catastrophe.

Here are some guidelines:

Don't Tell Off Your Boss

Venting your anger may feel good, but your employer may then refuse to give you a reference, says Gail Cunningham, spokeswoman for the Silver Springs, Md.-based National Foundation for Credit Counseling (NFCC), a non-profit organization that promotes financial responsibility. That could add months to your job search and further drain your finances.

Instead, use your company as a resource -- particularly if it offers placement assistance, job retraining, or if you can negotiate a more favorable severance package.