It doesn't matter if layoffs are at an all time high or your job seems secure, everyone knows how fast things can change. Loss of income occurs from layoffs and other circumstances changing. There are both expected and unexpected changes in finances that should be planned for to assure financial security.

We can predict some financial changes. Circumstances that can be planned for include the birth of a child, caring for elderly parents, college planning, medical procedures, and even divorce.

Some changes in finances are unexpected and there is no time to plan for them. Maybe you have experienced some circumstances that cannot be planned for like a sudden layoff, reduced work hours, illness, injury, death, car repairs, or large applicance repairs,

Some people are great with money and have enough in savings and investments to cover an extended period of time with no income or reduced income. They are confident that with their resume if their company started to layoff employees, their resume is strong and they will find a job quickly. Things don't always go as planned. Savings and investments can be drained by the time a new job is found. Job loss mortgage protection can help people keep bills current. Most unemployed people will find a job before their unemployment mortgage insurance is depleted. For the few that don't or must accept a job temporarily that pays less than their previous job, unemployment mortgage insurance allows for them to still have savings and investments to fall back on if needed.

You do not want to risk using up your savings during a layoff because you will not be prepared for other emergencies. There is no guarantee that a layoff will be the only financial trouble that a person must face. Sadly some people who are laid off may also face illness, injury, and car repairs. If the savings and investments have been being used during a layoff, there may be no funds available for other financial circumstances that may arise. Financial security during a layoff will depend on the balanced use of both unemployment mortgage insurance and savings.

You cannot stop saving just because you have some layoff protection. Savings should continue. A general rule of thumb is to be able to save the equivalent of 3-6 months' expenses in a savings account that is easily accessed. Once that has been accomplished, the savings account can be added to for a "cushion" and then the money that was budgeted to savings can be used to invest.

Even if you have cash coming in, you may want to take a termporary job so you still have some income coming in and do not deplete your savings accounts. During a layoff, volunteering can be an opportunity to gain new experience that may be helpful if a change in the field that you normally work in is being considered.

Solid financial security will depend on the combination of several sources being available when there is a change in income.