Whether you’re laid off or fired, losing a job sucks.
Here are the financial moves you should make when it happens.
Create an Emergency Budget
You probably know what an emergency fund is.
When wewrote about the topic of emergency fundsrecently, one reader suggested an emergency budget.
This is a backup budget to implement when your finances are squeezed (e.g., losing your job).
An “emergency budget” will minimize the amount you should probably withdraw from your emergency fund, too.
We’ve discussed how torecalibrate your budgetwhen your income changes.
Be realistic, though.
You don’t want to stretch yourself so thin that youset yourself up for failure.
Lower your monthly bills: List your monthly bills and see if there’sa way to reduce them.
Consider a cheaper phone plan.
Get rid of cable, if you have it.
Call your bill providers andhaggle a better pricewith them.
It may also help to reassess your belongings and sell any stuff you don’t need.
If you’ve got aside hustle, think about how to amp that up, too.
Similarly, you could look for easy, part-time work.
This way you have at leastsomemoney coming in while you look for a new job.
Ask Your Employer for Help
It can be hard to ask for help when you feel rejected.
After being fired, you might feel bitter and cynical toward your employer.
Mention any projects you’re working on, and convince your employer that they need to be finished.
Compensation for vacation days.
It’s a long shot, but it could keep you staffed if the company’s needs change.
Plus, you’ll have at least some income while you look for a new, part-time job.
For example, contact your mortgage loan officer and tell them you’ve lost your source of income.
They might allow you to postpone a couple of payments or make interest-only payments for a few months.
If you’re paying off a credit card, call the company and negotiate a lower interest rate.
Here’sa scriptto help you with that.
See if You Qualify for Assistance
See if you qualify for unemployment benefits.
Go to the Department of Labor’sCareerOneStopsite, select your state, and read through the requirements.
Here are some options that might be available to you.
You’ll still have to pay for the premium, though.
Those searches should result in numerous organizations available.
punch the organizations that you are interested in or think you may be eligible to join.
Children (and sometimes pregnant women) are also covered under theChildren’s Health Insurance Program(CHIP).
Check the website to see if you qualify.
Start thinking about what you want to do with that account.
401(k) plan fees are usually high, and the investment options aren’t great.
Losing a job is a really disappointing and frustrating experience.
