What to Do With Money After Being Laid Off
Many people are still receiving pink slips! Unemployment numbers are on the rise despite hopeful forecasts that the economy is getting better. For many professionals losing a job is a very traumatic experience especially if they’ve never been fired or laid off before. People who have always worked possess a mindset of having somewhere to go every day but more importantly having financial security.
Even when changing jobs a person can still make plans and decisions because there is an expectation of income. But what if there is no new job, therefore, no new income? Getting laid off in these economic times does not permit the average person to find a new job right away. A person can remain jobless for 6 to 12 months or longer.
So the recently unemployed often make the mistake of continuing to spend their money as if they still have jobs. Many have been witnessed gambling at one of the best aussie online casinos with money that never guarantees a win. However, there are seven critical financial steps that must be taken after suddenly being laid off.
Take and Preserve the Severance Package
The main purpose of severance pay is to tide one over until the next job comes along but if one doesn’t appear for more than a year; the severance packages must be used in the most frugal way in order to sustain living while unemployed.
Depending on how long a person worked for a company, severances can vary; some come with medical and company benefits for up to 30 – 90 days as well as the check itself.
Other severance packages just hand out a check with an agreement not to sue! Layoffs that occur during probationary periods don’t yield anything! The check usually amounts to a regular pay period. So DON’T spends it right away on any immediate needs until with a clear head a long-term unemployment plan is put into place.
Apply for Unemployment Benefits
The process of filing for and receiving unemployment can take weeks. When the severance runs out or the savings have been exhausted, a break in income really can really cause a lot of worries and financial hardship. So it’s important to file for benefits the DAY one gets laid off.
If advance notice is given, like a month or two, call the department of labor and ask when filing for unemployment should begin. The requirements and stipulations vary from state to state but it’s crucial to act quickly.
Stop Spending and Scale Back
Shopping sprees, weekend getaways, dining out, and future plans to make big purchases or remodel a house should be put on hold stat! Luxury habits that have become part of daily living such as cable, extra cell phones, computer amenities, or subscriptions of any kind should be cut. These expenses will deplete the money stash quickly.
Budget Like There’s No Tomorrow
One should look immediately at what’s left in their bank account to live on. This is separate from the severance. If the severance is all that can be worked with then at that moment a budget should be put into place for just that amount until unemployment kicks in.
Stock Up on Survival Items
One way to get ahead of the impending financial fray is to stock up on food, cosmetics, house amenities, and clothes or any expenses associated with maintaining a scaled-down lifestyle. It’s good to prepay rent, phone, insurance, internet, and utility bills to sustain during financial dips and seasons. . Bulk stores and bargain shopping is the best route to go early on in unemployment to avoid a drought of any kind.
Contact Creditors and the Landlord
Call all creditors and work out payment plans immediately. Customers in good standing should be able to work out a viable payment plan to stay current or pay off the balance.
Tax bills can go into agreement plans and student loans can be deferred when an unemployment status is established. If there’s a good relationship with the landlord, a grace period should be worked out in terms of paying partial rent with the intention of catching up at a certain date. But it is important to seek legal and financial assistance in the event of encountering rent issues.
Look For Short-Term Opportunities to Make Cash
Staying connected can yield opportunities to make fast cash. Be open to stuffing envelopes, passing out flyers, working registration tables, doing inventory projects, or any type of one-day job that pays cash on hand. It’s a great way to float in between unemployment payouts and pay down expenses and debts. Don’t forget that garage sales make surprising cash cows.