Count your blessings if you have never been on the receiving end of a job layoff. It can be one of the most stressful experiences. Often, losing a job, especially if sudden, can be very confusing. It can leave you feeling stressed, anxious, and unsure about what to do next.  

If this sounds like you, one of the first things you should do is breathe and try not to panic.  

You can take a few key steps during this transition period.  

1. File for Unemployment Benefits 

First, determine if you qualify for unemployment benefits. Several scenarios make you eligible for unemployment benefits, including job elimination, involuntary reduction in workforce, company restructuring or reorganization, seasonal job ending, or the company downsized or shutdown.  

There are instances whereby unemployment benefits are not an option. For example, if you were terminated due to violating company policy or quitting your job without good cause.  

Unemployment benefits provide a financial cushion while you look for a new job or develop new skills. These benefits are administered on a state-by-state basis, so it’s crucial to apply as soon as possible after you lose your job. 

The amount you can receive varies. Your weekly benefit is calculated and is determined by the amount you were paid during your “base period.”  Your base period represents one year of your work and wages.  

Many states offer a benefits calculator for estimating your weekly benefits.

Action Items: 

• • Check Your State’s Requirements: Each state has different application processes and eligibility criteria, often based on your work history and wages. 

• • Be Prepared with Documentation: You will typically need information like your Social Security number, employment history, and reason for job loss. 

• • Set Up Direct Deposit: This ensures you receive your benefits faster and more securely. 

Keep in mind that the amount of your unemployment benefits will not be the same as the amount you were paid.  

This is why step 2 is so important.  

2. Review Your Finances. Take Inventory 

Next, determine your emergency savings and how long you can afford to cover your bills.  

Once you know how much emergency savings you have on hand, it’s time to take inventory of your accounts.  

Take a few minutes to write a list of all your accounts. Make sure to include all checking accounts, savings accounts, retirement accounts, lines of credit, etc. The goal is to understand all your available resources.  

Action Items: 

• • List All Income & Expenses: Income in this context refers to your investment income (ex. Rental income or dividends from your investments). Identify your fixed expenses (rent, utilities) versus variable expenses (entertainment, dining out). It may be tempting to cut out all your discretionary spending. I caution against it. Keeping a low-cost expense or two that brings you joy is important.  

• • Prioritize Essentials: If needed, pause or reduce non-essential subscriptions and spending. There are fantastic apps for reviewing your bank and credit card accounts for subscriptions. A few of them will even cancel your subscriptions.  

• • Your Retirement Accounts: Strategize: Review your employer-sponsored retirement accounts (ex. 401(k), 403(b), etc.) for potential rollover opportunities. You can keep your account with your former employer, roll it over to an IRA or Roth IRA, or wait until your next job and transfer it to your new employer’s retirement plan. Regardless of which option you choose, this is a wonderful opportunity to review the investment options in your retirement plan to ensure they align with your goals.  

• • For Those Considering Self-Employment: If you are considering starting a business or had a side hustle small business, there are alternatives strategies you can use with your old employer-sponsored retirement plan.  
    
    • • One strategy is a loan to yourself: If you have a business set up, and you are the sole employee you can set up an individual 401(k) and transfer your old retirement account funds into the individual 401(k). You can then take out a loan. You have 5 years to pay back the loan unless it is used for the purchase of a primary residence.  

• • Track & Adjust: Budgeting can be difficult when unemployed, but it’s extremely important to do so during this period of transition. Use budgeting apps or simple spreadsheets to keep track of where your money goes. 

 

3. Reevaluate Your Insurance & Healthcare Expenses: Health, Life Insurance and HSA 

Losing employer-sponsored health insurance can be a major concern. It’s important to maintain coverage to avoid unexpected medical bills, which can derail your finances. Review all of your current insurance plans to determine and determine how you will cover health insurance.  

Action Items: 

• • COBRA Continuation Coverage: If you had employer-sponsored health insurance, COBRA allows you to stay on the plan for a limited time, although the cost is often higher. 

• • Marketplace Plans: Visit Healthcare.gov (or your state’s marketplace) to see if you qualify for special enrollment. 

• • Medicaid: If your income has dropped significantly, you might now be eligible for free or low-cost insurance through Medicaid. 

• • Life Insurance: If you had life insurance through your former employer, contact the benefits department and ask if the policy is portable. A portable policy allows you to continue coverage by making payments directly to the carrier.  

• • Health Savings Account (HSA): The bad news is you can’t contribute to your health savings account while unemployed. The good news is if you have funds in your HSA, you can use the funds to pay your health insurance premiums while unemployed; if you have a health savings account (HSA) 

 

4. Update Your Resume & Start Networking 

Why It Matters: 

Getting back into the job market means ensuring potential employers see your most current skills and accomplishments. Networking can uncover hidden job opportunities and put you on recruiters’ radars. 

Action Items: 

• • Refresh Your Resume: Highlight recent achievements, update your skills, and tailor your resume to the roles you’re targeting. 

• • Optimize Your LinkedIn Profile: Include a professional photo, clear summary, and list of relevant skills. If you cannot afford a professional headshot, consider using an AI headshot website.  

• • Tap into Your Network: Contact former colleagues, mentors, and friends to let them know you’re looking. Attend job fairs or virtual networking events. 

• • Volunteer: Consider volunteering for a cause you believe in.  It is a wonderful way to meet people and use your skills.  

 

5. Seek Free Resources & Support 

Why It Matters: 

Many people don’t realize the wide range of free or low-cost assistance available during challenging times. Organizations, nonprofits, and government agencies can offer everything from financial counseling to career coaching. 

Action Items: 

• • Financial Planning: Nonprofits like ours provide free debt management advice, budgeting help, and more. Apply to speak with a financial planner today. The entire service is free.  

• • Job Placement Services: Local workforce development centers often have training programs and job placement services. 

• • Community Resources: Look for free or low-cost mental health support, food banks, or utility assistance programs in your area. 

Job loss is often as much an emotional challenge as it is a financial one. Give yourself permission to feel upset, but also remember to focus on the proactive steps you can take. By controlling what you can—like your budget, your job search strategy, and your health insurance options—you set yourself up to bounce back faster and stronger. 

Remember, you’re not alone. There are programs and organizations (like ours) dedicated to providing support and guidance every step of the way. With the right strategy and a positive mindset, you can navigate this challenge and emerge more financially resilient than ever.