You work hard and are dedicated to your company so you don’t really expect to experience job loss. Often, job loss may have nothing to do with performance. It could be a result of a merger or acquisition, operations moving elsewhere or a number of other reasons that affect your employment status.

Expected or not, it’s critical to financially plan for that rainy day so to speak in the event of job loss. That cushion will give you the time to search for the right job, give you the confidence that you have options rather than jumping for the first thing that comes along. Here are a few helpful tips in saving money for that possibility.

Tax Refund

Some of us already have our tax refund spent before we receive it. Consider putting away 50% of that refund in a separate checking account that carries no fees. Some banks give you a bonus for opening an account and going on direct deposit. It can range anywhere from $200 – 500. That’s free money you didn’t have to do much for but spend about an hour in the bank. Keep that account separate as your emergency fund and be disciplined in not using it to prepare for job loss.

Credit Cards

Although it’s never a good idea to spend more than what you can afford, credit cards do have some financial benefits if you use them wisely. Make your payments in full every month because those interest payments can make a huge dent in your budget. If you have a decent credit score, you can apply for a credit card that offers points for everyday purchases like food shopping, fuel, and household needs. Select the card that is right based on your spending patterns and start earning points toward your vacation plans or buying gifts for the holidays. That can save you quite a bit toward some of those larger purchases.

Review Your Budget

Keep track of how you spend your money. It may surprise you. That daily run for coffee could add up to $150 a month. If you eat lunch out fairly regularly, that could cost you hundreds of dollars as well. Being aware of your purchases on a monthly basis is really the best way to determine the small ways in which you can cut your spending.

Thinking Differently

So much things in life are negotiable. Always look for opportunities to negotiate. Perhaps you can negotiate your salary, perhaps you seek what options are available to save on your car insurance, and some stores give you a discount if you take a floor model. It’s an important mind shift. Once you get the hang of it, you’ll start being able to save more money.

You really are the best person to figure out what works for you and where you can start saving without affecting life essentials. You may want to consider some of these helpful tips to have an emergency fund available in the event of job loss. If you don’t, that’s great. It can be some extra savings toward retirement.