Perhaps you’ve heard the expression: “Life is what happens when you’re busy making other plans.” It’s certainly true about an unexpected job loss. And it may cause stress over your financial situation. Here are a handful of steps you can take shortly after the loss of employment to help put yourself in the best financial position. Some of these are time-sensitive, so the sooner you act, the better.
File for unemployment – While unemployment insurance typically covers less than half of your previous paycheck, it can provide some financial relief — generally up to 26 weeks. Since filing a claim can be time-consuming, file immediately so payments begin as soon as possible. There are eligibility requirements, including your unemployment being involuntary and through no fault of your own, and meeting your state’s time worked and wage requirements. You can learn more about your state’s unemployment insurance program online.
Adjust your budget and spending – You’ll likely require some changes to your budget, at least temporarily. Try to focus on the essentials, like housing, utilities and food, and see where you can cut costs — or find cheaper alternatives — on nonessentials, like coffee shops and entertainment. If you’re saving for longer-term goals, like retirement or college, you may want to pause those contributions temporarily.
