New data released has shown that more and more companies are failing. This may lead you to be worried about your job. The fact is you will most probably not lose your job, but just in case it is prudent to have a plan and be prepared for the worst. Even if the worst does not happen you will be in a better position due to having set up a buffer zone around your needs. So if you are worried about your employer going under what can you do?
The first thing you need to do is to plan a budget. You can use the one found here on Justmoney. Then you need to take all of your expenses for a month and multiply by a minimum of three months to work out a buffer zone. A buffer zone is basically a bunch of money that you would need to 'buffer' yourself from external events. Say you lost your job and figured that you could reasonably expect to get a new job within three months then you would need a three month buffer zone. However with the current tough economic climate it might be better to increase that time period to up to six months. This money then needs to be put away in a decent savings account for a rainy day. It's just common sense but most people do not have a fund to protect themselves from things that go wrong.
This is what some of the financial papers had to say about companies closing down. The Times noted that the number of companies liquidated in the first quarter of 2009 was 46.7 percent up on the first quarter of last year. This is a scary figure and economists think that the situation might only improve next year. Now is the time to be saving for a rainy day, it might come quicker than expected. The Dispatch looked at the numbers in more detail but the general picture is that more companies are closing down and if this happens to your employer you need to be prepared. So work out that budget, multiply it by a reasonable number of months and start saving towards that sum, in the long run you will always be better off with a buffer.