You don't have to use it, but it may come in handy if you lose your job. And it's hard to get a line of credit once you're unemployed. If you have a lot of credit card debt, look for ways to consolidate it at a lower interest rate. Again, that will be much harder to do if you're unemployed. If you're considering starting your own business, don't wait until you're unemployed, says Ginita Wall, a financial planner and co-founder of the Women's Institute for Financial Education.
Most enterprises take awhile to become profitable.
If you start while you're still working, you'll have income until the business starts to earn money. Take a hard look at your fixed costs and ways you can reduce them. While it's easy to cut back on restaurant meals and movies, your vacation home mortgage and car loans must be paid. You may want to sell or rent big-ticket items that are a regular drain on your finances. If your home mortgage carries an above-average rate, this also may be a good time to refinance.