Navigating Financial Uncertainty: 6 Key Tips for Severanced Workers
February 8, 2023
Losing your job can be a difficult and overwhelming experience, and it's natural to feel anxious about your financial future. However, there are steps you can take to help manage the uncertainty and ensure that you're making the most of your resources during this transition period.
- Assess your current financial situation.
- Make a detailed budget of your income and expenses, including any outstanding debts or bills.
- This exercise will give you a clear picture of your financial situation and allow you to identify areas where you can cut back.
- Update your emergency fund.
- Ideally, you should have at least three to six months of living expenses saved, in case of an emergency.
- If you don't have enough in savings, consider cutting back on discretionary expenses or picking up a part-time job to boost your savings.
- File for unemployment benefits.
- If you're eligible, unemployment benefits can provide a crucial source of income while you're searching for a new job.
- Be sure to file as soon as possible, and gather all of the necessary documentation.
- Review your insurance coverage.
- If you lose your job, you may also lose your health insurance.
- Look into options for COBRA coverage, Medicaid, or the marketplace.
- Consider a career change.
- If you've been laid off due to the company's downsizing, it may be the opportunity to consider a career shift.
- Seek professional advice.
- A financial advisor can help you navigate your options and develop a plan for your financial future.
- A financial advisor can provide a range of services, including:
- Reviewing your current financial situation and identifying areas for improvement
- Helping you create a budget that takes into account your income and expenses, as well as your short-term and long-term financial goals
- Reviewing your investment portfolio and making recommendations for changes or adjustments
Remember, losing your job does not have to mean losing control of your finances. By taking the time to assess your situation and make a plan, you can weather this uncertainty and come out stronger on the other side.