If you find yourself in the whole furlough situation, here are some tips I'd like to share to make it a little better for you. I hope it helps and don't fret! | https://www.frugalconfessions.com/unemployed/prepare-yourself-for-a-furlough.php

I know several people who have either been furloughed over the last several years, or are about to enter a period of furlough at their current employer. The good news is that a furlough does not mean you are losing your job. The bad news is that it does mean a decrease in income for the foreseeable future.  So what should you do to prepare?

The good: a furlough doesn't mean you're losing your job. The bad: income decrease for the foreseeable future. Click To Tweet

Stockpile for Lean Times

If you have time to prepare (my one friend was given three months’ advance notice), then it is time to take part of your budget and put it towards stocking up. Instead of splurging or spending money on entertainment, use that money to take advantage of sales at the grocery store and freeze the food. Build up a toiletry stockpile by learning how to play the Drugstore Game. Anything that you can do to decrease your future expenses will be well worth the effort.

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Practice Living on Your New Income

You need to know what you are working with, so it will be very helpful for you to calculate what your new income for these furlough months will be. Subtract your new pay from your old pay. In the months leading up to your furlough, make sure to sock away the future income lost as savings as if you were already experiencing the decrease in income. Not only will this allow you to adjust your spending accordingly, but it will build up a small emergency savings for the months when you will be in furlough for real.

Come Up with Ideas to Keep You Entertained Cheaply

One of the perks of furloughs (if you can look at it that way) is the increase in personal time they afford. Instead of being tempted to spend lots of money outside of the house in a fit of boredom, come up with some house projects, crafts, or other ways to entertain yourself and use your time efficiently. For example, one furlough day you might want to read that book you’ve been dying to start. Another furlough day you can spend beautifying your garden by weeding, watering, etc. Why not volunteer somewhere during your forced time off? If you have the ability to choose your furlough days, you can choose them when there are free museum days in your nearest city. One of the perks of furloughs (if you can look at it that way) is the increase in personal time they afford. Click To Tweet

Pare Down Your Fixed Expenses

Now would be a wonderful time to take a day and make those four money-saving phone calls I discussed last week. How much can you save off of your current monthly expenses simply by asking? The good thing about this exercise is that you will still be reaping the savings after the furlough is over.

Potentially Line Up Work for These Days

Perhaps after calculating your new income you have found that you just cannot survive on it. In this case, you need to look for work that you can do on days when you are not working. It’s not exactly seasonal work you will be looking for, but rather a small amount of part-time work. Perhaps you can try out another type of career you have been thinking about. Now would be the ideal time to start up a blog, provide child care for others, work at a farmer’s market stand/at a farm, etc.

Chances are good that you will be working for someone for the rest of your life. This was the hardest lesson I learned when I was first laid off. It was June 2008, and for the first month or so of being unemployed I was quite depressed. Within three months I had found a new job. Once back in a cubicle, I lamented how I had allowed my mental state to take away from what my unemployment had really been: a short reprieve from a lifetime of work. Take it from me that you might as well enjoy the extra time off that you have by doing things that you want to do, as well as things that you find hard to do when working five days per week. Perhaps you can schedule a doctor’s appointment you’ve been meaning to make, and then spend the afternoon putzing around a park. Surprise your child by showing up at their sports event, picking them up from school, or just eating lunch with them. However you choose to spend your furlough, make sure you time the activity to beat the commuting crowd. You might as well take the perks where you can get them, right?

I’ve created The Layoff Empowerment Kit, and I’m giving the checklist away to you for FREE. All you have to do is subscribe by clicking the graphic below!

The Layoff Empowerment Kit graphic

In the full Layoff Empowerment Kit I answer questions like…

  • Can I collect unemployment compensation at the same time as I’m receiving severance pay?
    What happens to any 401(k) loans I have out?
  • About how much can I expect to receive in Unemployment Compensation in the event of a layoff?
  • What other options do I have besides COBRA for health insurance (especially with all the recent health insurance changes)?
  • And many, many more

The printable checklist of action steps is organized by the deadline in which you need to complete each item (immediately, within 1-2 weeks, and within 1 month). It would be a super great idea for you to print it out and keep in your personal/private file at work.

Hey, you never know when you might be pulled into a “meeting”.

9 replies
  1. krantcents
    krantcents says:

    I went through this for 3 out of the last 4 years! This no easy way to deal with it, but there was time to prepare for it. I started to increase my savings month in advance so I could depend on it when the furlough days hit. I took a 5% hit per year. Now that better times are here, I hop to get that money back, but there is no guarantee.

    • FruGal
      FruGal says:

      Thank you so much for sharing your experience, and your preparation. though I am sorry you had to go through it.

  2. My Multiple Incomes
    My Multiple Incomes says:

    The most difficult thing to do during the lean months when you are earning less or not earning at all is the to not worry, but if you’re going to look at the bright side, you know that for as long as you’re qualified, you’ll always find something, but you’ll rarely have that kind of free time. Try to relax and have a little fun.

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