Here's my practical guide to preparing for a job loss before it happens, since the best time to prepare is when you're still employed.

Step 1: Emergency fund target. If your industry has layoff cycles or your role is vulnerable, aim for 6-9 months of expenses rather than 3. Build this before you need it.

Step 2: Keep your resume current. Updating a resume during a job search is harder than maintaining a current one. Spend 30 minutes quarterly keeping it fresh.

Step 3: Maintain your professional network actively. The best job opportunities come through relationships, not cold applications. Reconnect with former colleagues occasionally. Attend industry events.

Step 4: Understand your severance rights. Many states have specific rules about severance and final paychecks. Know what you're entitled to.

Step 5: Understand COBRA. Losing employer health insurance triggers a COBRA continuation right — typically 60 days to elect continuation at full premium cost (expensive) or find a marketplace alternative.

Step 6: Check your 401k vesting schedule. If a layoff seems possible, understand whether you're close to a vesting date that would affect how much you'd keep.