If you're experiencing a layoff, I'm sorry to hear it!
As always, I'm here to offer a few ideas to help you stay grounded, organized & focused on the next steps.
Review your Budget & Spending Plan.
Whenever I go through a big shift in life that affects my finances, I always start in the same place, re-establishing my base spending plan. When you're no longer working, a few things might change:
- Some expenses may decrease i.e. transportation, entertainment, travel, and dining out.
- While others may increase. Meal delivery, groceries, utilities at home, etc.
Make a list of your fixed expenses, rent, wireless services, debt obligations, etc. You can use a worksheet like I've used in the past with my clients, or you can use a tool like RightCapital to create a digital Spending Plan informed by your past spending patterns.
Establish your Emergency Fund and determine your Financial Time Horizon a.k.a. how long could you go without work.
How much more cash do you need to establish a 3-month emergency fund? Or maybe 6 months if you're concerned it may take you longer to find your next gig? Use severance pay and any current cash savings to help you establish your emergency fund & consider moving it to a High Yield Savings Account.
If you have more cash than you need, pay off high-interest credit cards. Still, have excess? Pay bills in full (like Auto Insurance) to allow for lower month-over-month expenses. Still excess? Let's schedule some time to chat about options that might suit your specific situation.
If you don’t have access to enough cash to establish an emergency fund or your time horizon is very short (meaning you'd run out of cash in less than 3 months) consider taking a part-time or seasonal job, even if it covers just half of your expenses, it will take the edge off and might even help you be more productive during your available job-search hours (think Parkinson's Law).
You may also want to consider other portable benefits your company will be handing over to you once you've officially severed your relationships like Cash Balance Pension Plans, 401(k)s, and other Employer Sponsored Retirement Plans, HSAs, or Stock Accounts. With some restrictions and caveats, these accounts can often be liquidated to serve a cash need. Reach out to me or your financial pro for more information.
In either case, check your state's website to find out the process to apply for unemployment benefits that may be available to you.
Don’t forget to cover your Medical Insurance Needs. If you had health benefits covered through your employer, consider continuing your coverage through COBRA (especially if you have lots of healthcare needs or concerns) or shopping for health insurance through a broker or www.Healthcare.gov.
Keep in mind I'm here to help. If you want help establishing your short or long-term plan, book a FREE Discovery Session using this link: https://go.oncehub.com/HerPlanningOnboarding.