Losing the Job

One of my co-workers just got laid off today. Although I think lay-off rarely happens in my company, it could very well does. Now she feels very stressful and is selling her home which she just bought eight months ago with a zero down payment mortgage.
This makes me think how should we cope with the situation if that ever happen to us. Other than actively searching for new jobs after getting laid off, I think there are some general guidelines that we should follow to help us better getting through the tough time.

1. Build up an emergency fund. It is recommended to have around 3 to 6 months living expenses available to you in some easy to access account, such as savings account. Some people use line of credit. With emergency fund available, it allows you to calm down, think about the situation/problem before making any decisions.

2. DO NOT get yourself into zero down payment mortgage. If you have to buy a house with zero down payment mortgage, it simply means you cannot afford it. Don't buy it. Continue to rent, save more until you can buy it with at least 20% down payment. My co-worker has to sell her house because she and her husband could not afford the mortgage payment anymore after she got laid off. They are under pressure to sell their house. As a result, they probably will not sell their house for a good price.

3. Invest in yourself. We have been talking about investing our money every single day. However, the biggest assets you have is yourself. Go to school, learn new things, invest in yourself is the best way to avoid losing the job you have.