Hopefully, you won't need to know the stuff we talk about in this week's "Investing for the Long Run" blog.  But if you don't need it, you probably don't have to think very hard to come up with someone you know who does.  With 10% unemployment, 1 out of 10 of us is out of work.  And when you count the full-time jobs that have become part-time and those that have reduced hours, it's even worse.

There's nothing that can wreck your long-term financial goals like the loss of an income source.  Well, nothing except a 30-40% drop in the markets…oh wait, we already had that…last year.  So, a lot of people are getting hit with a financial double whammy.  Their balance sheet has taken a hit because of the near-collapse of the financial and real estate markets.  And, as if that wasn't enough, many have recently lost an income.

Maybe you are already in the ranks of the unemployed.  Or maybe there's a possibility that your job could disappear (like the 240 at KSC we learned about last week).  With a little planning, you can make this unfortunate situation a bit better and less damaging financially.

Here are some ideas that you can use as a starting point on some issues you should make sure to think about and discuss with your significant other:

• Your relationship.  Remember, more marriages fail because of money than for any other reason.  If you become unemployed, your life is going to change, at least temporarily, and it could be a strain on your relationship with your family.  Stress can do a lot of damage.  So communicate.  Make your plans to get through these changes together.  Involve the kids…they need to understand and they will learn from the example you set.
• Expenses.  When you're not working, expenses can eat away your savings more quickly than you will realize.  Try to have enough cash set aside to get through 6 months of your basic expenses.  Cut as much as you can—like premium cable and extra phone services.  Increase your auto deductible.  Sell a car that has high monthly payments.  You may need to suspend or reduce contributions to retirement or education accounts. These are just a few examples.  See what you can come up with.  
• Income.  Make a list with all the household sources of income.  Are you eligible for unemployment?  Did you get severance pay?  If so, make sure you understand it.  Is your spouse still working? Is part-time work available to you?  What savings do you have that you can access?  Try very hard not to raid your retirement account.  And be careful about using home equity.
• Health Insurance.  If you had coverage through your employer, you need to understand how to continue protecting your family.  COBRA is an option for most people.  But, when I left my previous firm to go out on my own and had COBRA available, I found it much more affordable to buy a high-deductible policy for me and my family.
• Get to work on getting to work.  Get your references in order and start to find your new job.  Don't let a little time off turn into a bad habit.  Get up every day and go to work on finding your next position.  There is some hiring going on, but you have to find it.  Use your networks…your friends, family, and people you know from any organizations you belong to.  And don't forget your social networks…LinkedIn and Twitter are a couple of places to start.  Take advantage of any government agencies or programs. In Florida, www.floridajobs.org is a good place to start.  And don't be afraid to ask for help.
• Survival mode.  If your unemployment drags on for several months, it can turn into a serious crisis.  You should start getting prepared for taking drastic measures such as selling the house or car.  Take a look at cash values in any life insurance policies.  If you are under 59 ½ and will need to access an IRA or 401k, make sure you understand the special rules that come into play.  There are ways to get funds without paying a penalty, but they are tricky, so you should consult a professional.
• Go into business?  A cautionary note here…lots of newly unemployed use their time off as an opportunity to start a business.  A great story when it works, but remember that most businesses fail because of a lack of cash flow and planning.

This is not an exhaustive list, just a place to start.  Hopefully, you don't need the info.  Unfortunately, more and more do.