David Bakke is a small business owner and author of a personal finance book. He now blogs about money management, careers, retirement, and more at Money Crashers Personal Finance. Read more...
Losing your job requires adjustment and tough choices.
In order to survive living on a slashed income, you need to slash your expenses. List out everything you spend money on monthly in order to find where you can cut back. Start with your regular bills and services, then pore over bank and credit card statements for nitty-gritty details like cups of coffee and fast food. If you spend cash primarily, save your receipts.
Things to cut back on may include your TV package, your cell phone plan, lunches and dinners out, and "fun" purchases like new clothes or electronics. Also incorporate ways to save into your routine: use coupons at the grocery store, reduce home energy use, and consolidate errands to save on gas.
Every little bit helps.