If you’re experiencing a sudden loss of income, it’s completely understandable to feel overwhelmed and uncertain about the future. Layoffs are incredibly challenging, both emotionally and financially. Remember, you’re not alone in this—many others are facing similar situations, and there are steps you can take to help you manage your finances and maintain stability during this transition. Read on to learn more about these steps suggested by our trusted partners at GreenPath Financial Wellness.
Take Time to Process
Taking time to process the news can help you regain clarity and move forward with a plan that protects both your financial future and professional relationships.
- Request a written reference or LinkedIn recommendation from your employer before you leave. This can be a valuable asset in your job search, providing potential employers with a positive endorsement of your skills and work ethic. Additionally, ask if your employer offers outplacement services to help you transition to a new job.
Apply for Unemployment Benefits
Apply for unemployment benefits in person, online, or over the phone. Act quickly, as it may take several weeks to receive a check.
- Keep detailed records of your job search activities, as some states require this information to continue receiving benefits. This includes dates, company names, and positions applied for, which can also help you stay organized and track your progress. Make sure to follow up on your application to ensure there are no delays in processing.
Revise Your Budget for Financial Health
Prioritize essential payments (rent, groceries, utilities) and pause nonessential ones (memberships, subscriptions). Use emergency funds if available. Consider seeking credit counseling to help you create a budget and manage your finances effectively during this challenging time.
- Use budgeting apps to track your expenses and identify areas where you can cut costs. Apps like YNAB (You Need A Budget) can provide insights into your spending habits and help you make informed decisions about where to reduce expenses. Negotiate with service providers for lower rates or temporary suspensions where possible. Also, check out Nymeo's online banking for tools and resources.
Plan Your Insurance Coverage
Explore options for health insurance coverage, such as joining a parent’s or spouse’s plan, or shopping through the federal insurance marketplace.
- Look into short-term health insurance plans as a temporary solution until you secure a new job with benefits. These plans can provide essential coverage at a lower cost, helping you avoid high medical expenses during your job search. Also, check if you qualify for Medicaid or other state-sponsored health programs. If you are a Nymeo member, you can also turn to insurance options from the credit union. More information about Nymeo Insurance Services is available here.
Lower Your Payments
Request temporary suspension of payments or inquire about lower rate promotions from financial institutions.
- Contact your creditors as soon as possible to discuss your situation and explore available options. Many creditors have hardship programs that can offer reduced payments or deferred payment plans to help you manage your finances during this period. Document all communications and agreements for future reference. Consider enrolling in a debt management program which can reduce payments and help you become debt-free faster.
Join the Gig Economy
Temporary gigs like package delivery, freelancing, or temp work can help you maintain cash flow while searching for a new job.
- Spend some time on platforms like Upwork, Fiverr, or TaskRabbit to find short-term gigs that match your skills. These sites can provide flexible work opportunities and help you bridge the gap until you find a permanent position. Additionally, consider leveraging your network to find freelance or contract work opportunities.
Remember, this is an incredibly challenging time, but it’s not permanent. With the right approach and support, you can navigate through it successfully. For additional support, consider reaching out to GreenPath for free financial counseling. Our empathetic and certified counselors will work with you to create a personalized plan to manage your finances and help you move forward with confidence and peace of mind. Nymeo also has resources and tools to help you manage your finances during a layoff. Please visit this page to speak with a representative.
Category: Credit & Budgeting
