Job loss can be devastating, both emotionally and financially.
A sudden or unexpected job loss can leave you reeling and unsure of what to do next.
Even if you knew layoffs were coming, the loss of income and the closing of a professional chapter hits hard, and often leaves a huge sense of loss.
However, while you may have no control over the job loss, you do have control over how you manage your finances in the aftermath. Over time, we at Regions have seen there are four key steps that can help.
Speak to HR About Your Benefits.
Even if the news is shocking and frustrating, work to take a big-picture view, and recognize there are often resources available to ease the transition. Have a conversation with Human Resources about any severance pay, compensation for unused vacation or sick days, and whether the company has rules about how you can govern your pension or employer-sponsored retirement accounts.
Ask about continuing healthcare coverage under your previous employer-sponsored health insurance plan under COBRA. After you have lost your job, you may qualify for premium tax credits and savings on deductibles, copayments, and other out-of-pocket payments based on your household size and income. Maintaining health insurance may be costly but dealing with a medical emergency without insurance could cost even more.
File for Unemployment.
Unemployment insurance can help you make ends meet while you search for a new job. To qualify, you will need to visit the Mississippi Department of Employment Security website and file for benefits. The benefits you may receive can likely vary based on your prior income. There may be a review period before you receive benefits, so start the process as soon as possible. Be open and upfront with the unemployment office, explaining your needs and inquiring about any resources for job placement that various agencies may provide.
Conduct a Fresh Assessment of Your Finances.
Review your current assets and liabilities. Factor in any severance package, unemployment income, savings, and any income from your spouse. Consider any liquid assets you have that you may be able to sell or liquidate to help you through.
With limited income, it is crucial that you take an honest look at the impact on your finances. Use a spending tracker to create a detailed list of expenses, which can help you find those outlays of cash that may need to be cut for now. Once you have an idea of how much money you’ll have monthly, take the time to adjust your budget. We have budgeting tools available for free at www.regions.com/nextstep, and you don’t need to have a Regions account to use them.
Also, consider contacting your creditors and explaining the situation. Many may be willing to work with you if you are open about the realities of your financial position and what they can expect from you.
Focus on What You Can Control.
It is easy to feel overwhelmed when dealing with a tighter budget, less income, and the uncertainty of when you will find your next job. Try your best to maintain a positive attitude and focus your time and energy on the things you can control.
Financial challenges can sometimes feel insurmountable, but we have seen before that, with the right strategy, you can overcome them. Remember, there are financial professionals here in Metro Jackson who are ready to speak with you and offer you the benefits of their experience. Our goal is to not only serve our customers during the good times – but to help them through the difficult times as well.
