Experiencing an unexpected job loss can feel like a sudden storm, sweeping away the stability and routine you’ve come to rely on. It’s a moment that can shake you to your core, leaving you feeling uncertain about your financial future and where to turn next. Before taking any drastic measures, here are some dos and don’ts we suggest:
Take Stock
DO
Take a deep breath and assess your financial situation. Evaluate your savings and assets, and map out your budget. If you received a severance package, understand what benefits it includes (such as help with job placement or continuance of health care coverage) and aim to stretch it as far as you can by cutting back on non-essential expenses.
DON’T
Keep spending as if you still have your old paycheck flowing in. Every dollar saved will stretch your funds a little further. Understanding your financial position will help you make informed decisions about your next steps.
Tap Into Unemployment Benefits
DO
File for unemployment benefits as soon as possible after your job loss, if you’re eligible. These benefits can provide temporary financial assistance while you search for a new job.
DON’T
Feel hesitant or embarrassed about applying for these benefits – they are there to help you during times of need while you search for your next opportunity.
Secure Healthcare Coverage
DON’T
Risk going without benefits for a few months until you are re-employed! Pricing can vary widely, so…
DO
Research alternatives, including taking COBRA through your former employer or choosing a plan through the Affordable Care Act, marketplace.
Embrace Additional Income Streams
DON’T
Wait for the perfect employment opportunity to come along. In the gig economy era, there are countless opportunities to earn additional income outside of traditional full-time employment.
DO
Explore options such as freelance work, part-time employment, or temporary contracts. Even small sources of income can help cover expenses and bridge the gap until you secure a new full-time job.
Reevaluate Your Financial Goals
DO
Consider whether any of your short-, medium, or long-term financial objectives need to be modified considering your job loss, and if so, develop a plan to work toward achieving them.
DON’T
Assume that your goals are no longer achievable, they just might need to be adjusted somewhat! This could be a time to hit the reset button as it relates to your work/life, giving you the chance to realign your priorities to better match your values and career aspirations.
Seek Support and Guidance
Navigating a job loss can feel isolating, but remember, you DON’T have to go through it alone. Seek out support and guidance from friends, family, and professional advisors during this challenging time. If you’re unsure about how to manage your finances or navigate your job search, DO consider seeking guidance from a financial advisor or career counselor, who can provide personalized advice and help you make sound financial decisions.
An unexpected job loss can be disheartening, but it isn’t necessarily a catastrophe. Your financial planner will work with you to take proactive steps to manage your finances while you search for new employment opportunities that can help you weather this period of uncertainty, enabling you to emerge stronger on the other side.
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