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Almost\u00a0two million<\/a> people in the U.S. get the bad news every month: they have been laid off. Whether they are\u00a0retail clerks<\/a>\u00a0or\u00a0rocket scientists<\/a>, their bosses have decided that the enterprises will be more efficient without them.<\/p>\n Being on the receiving end of a pink slip is, naturally, stressful. Paychecks stop coming and each month a new crop of jobless\u00a0bankers<\/a>,\u00a0chocolate makers<\/a>\u00a0and other redundant workers scramble to support themselves and their families until they can line up a new position.<\/p>\n More:<\/strong> \u2018Anxiety-inducing\u2019 layoffs are scaring many U.S. workers. How worried should they be?<\/a><\/p>\n They all know instinctively that being smart with money is vital after a layoff, but they do not all know the best moves to make. Here are the fundamentals from Next Avenue.<\/p>\n 1. Secure healthcare coverage.<\/strong>\u00a0Maintaining healthcare for you and your family is an important financial task. So don\u2019t delay.<\/p>\n \u201cAssess your healthcare options immediately,\u201d says Sean Lovison, a certified financial planner at\u00a0Purpose Built Financial Services\u00a0in Moorestown, New Jersey.<\/p>\n \u201cIf your former employer-provided health insurance, consider (paying for)\u00a0COBRA<\/a>\u00a0to continue your current coverage, although this can be expensive,\u201d he adds, \u201cor explore the marketplace for alternatives. (Affordable Care Act<\/a>\u00a0coverage could be a more affordable option.)<\/p>\n \u201cHealth care expenses can be significant and ensuring coverage is critical.\u201d<\/p>\n One good option may be to change over to a spouse\u2019s health plan.<\/p>\n \u201cIf you are married and your spouse has access to employee health benefits, look at switching to your spouse\u2019s benefits rather than utilize COBRA,\u201d says Patrick Whalen, a certified financial planner at\u00a0Whalen Financial Planning\u00a0in Los Angeles. \u201cCOBRA can be expensive.\u201d<\/p>\n 2. Make the most of severance packages.<\/strong>\u00a0If your erstwhile employer gave four or six weeks or more of severance pay, be shrewd in saving and sparing in spending.<\/p>\n \u201cIf you receive severance, set that money aside in a high-yield savings account (where your emergency fund is located, if you have one),\u201d says Kiersten Peshek, a Certified Financial Planner at\u00a0Citrine Capital\u00a0in San Francisco. \u201cDraw from the account on a monthly, semimonthly or biweekly basis (like a paycheck) in the amount that will cover your typical monthly expenses.\u201d<\/p>\n Read:<\/strong> I was laid off after 23 years \u2014 how do I save my retirement? \u2018I fight panic attacks watching my severance dwindle.\u2019<\/a><\/p>\n 3. Apply for unemployment benefits.<\/strong>\u00a0This insurance, which you paid for via payroll deduction, is available at the state level. It is important to check if you qualify. Unemployment benefits could be the monthly infusion of cash you need to get you through your job search.<\/p>\n \u201cFile for unemployment right away so you can start receiving benefits to help with your cash flow,\u201d says Carla Adams, a Certified Financial Planner at\u00a0Ametrine Wealth\u00a0in Lake Orion, Michigan.<\/p>\n \u201cIf you receive severance, check to see if your state unemployment office will still pay unemployment benefits. Some states do and some do not,\u201d she says.<\/p>\n 4. Re-evaluate your budget.<\/strong>\u00a0With your old source of income gone, it is time to reassess your budget.<\/p>\n \u201cGo through your budget, latest\u00a0credit card\u00a0bills and\/or bank account statements and find areas where you can cut back,\u201d Adams says. \u201cRemember, this is just temporary, but go as lean as you can. Great places to potentially cut back include unnecessary monthly subscriptions, meals out and vacations that can be readily canceled.\u201d<\/p>\n 5. Don\u2019t touch retirement savings.<\/strong>\u00a0Traditional IRAs, as well as 401(k)s, 403(b)s and most other tax-advantaged retirement-savings plans come with penalties for early withdrawals and it is best to leave them alone so they can continue accumulating wealth for your retirement.<\/p>\n \u201cAvoid tapping into your retirement accounts, if at all possible,\u201d Adams says.<\/p>\n 6. Pursue new revenue streams.<\/strong>\u00a0Getting a new full-time job may take some time. While you search, why not take on a\u00a0part-time job? The income will help with your cash flow.<\/p>\n \u201cWhile your No.\u00a01 priority of course is to find a new job, if you are able to find additional income streams without interfering with your job search, be sure to take advantage of opportunities such as becoming an Uber 7. Exercise company stock options.<\/strong>\u00a0If your former employer gave you stock options in the company, don\u2019t forget about them. You only have a short time to exercise them or risk forfeiting them.<\/p>\n \u201cIn the tech world, company equity is common so take a look at how much time is left for you to act on that equity,\u201d Peshek says. \u201cFor example, if you have Incentive Stock Options (ISOs), those typically must be exercised within 90 days of termination or a layoff or they are forfeited. Sometimes this can be as short as 30 days. So double check and make a plan if you want to keep that equity.\u201d<\/p>\n Don\u2019t miss:<\/strong> Getting fired changed my life in the best way: How to get through financial disasters and thrive<\/a><\/p>\n 8. Stay in touch with HR at your old company.\u00a0<\/strong>People in that department may be able to assist with handling your company benefits.<\/p>\n \u201cGet the contact information for HR,\u201d says Bradley Hilton, a Certified Financial Planner at\u00a0Sonas Financial Planning\u00a0in Atlanta.\u201d These folks will be key to helping you with post-employment details like health insurance, retirement accounts, documents, noncompetes, et cetera.\u201d<\/p>\n 9. Eliminate optional spending.\u00a0<\/strong>While searching for a new full-time job, avoid big purchases. They can wait until you\u2019re hired again.<\/p>\n \u201cWe recommend avoiding any big-ticket purchases until you secure a new paying position, and holding off on any financial decisions that would insert large fixed costs into your monthly budget,\u201d says Eric Roberge, a Certified Financial Planner and founder of\u00a0Beyond Your Hammock\u00a0in Boston.<\/p>\n <\/p>\n 10. Tap in to emergency savings.<\/strong>\u00a0If you have tucked away several months of living expenses in an emergency fund, now is the time to tap that resource and spend it judiciously.<\/p>\n \u201cIf you\u2019ve been good and built an emergency fund\u2026now\u2019s the time to rely on it,\u201d Hilton says. \u201cThat\u2019s what it\u2019s there for.\u201d<\/p>\n Lucy Lazarony\u00a0is a freelance journalist living in South Florida who writes about personal finances, the arts and nonprofits. Her writing Is featured on Next Avenue, Bankrate, MoneyRates.com, MSN and the National Endowment for Financial Education. She previously worked as a staff writer at Bankrate.\u00a0<\/em><\/p>\n This article is reprinted by permission from\u00a0<\/em>NextAvenue.org<\/em><\/a>, \u00a92024 Twin Cities Public Television, Inc. All rights reserved.<\/em><\/p>\n\n
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\n delivery driver, et cetera,\u201d Adams says.<\/p>\n\n
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