If you were recently fired or laid off from work, you might be experiencing significant stress, which can take a toll on your physical and mental health.
While job loss can feel overwhelming, you must take proactive steps to protect your finances and lower your rising stress levels.
To quickly bounce back, read the following advice on how to financially recover after losing your job.
Check Your Final Pay and Severance
The first step you should take is to check your final pay and severance package. Depending on your state, your employer might be legally required to immediately pay any wages owed, overtime, vacation time, bonuses, commissions, and paid sick leave following your termination.
If you’re struggling to recover some or all of the above, consider seeking legal advice to recover any lost wages and obtain compensation.
For example, the Colorado Wage Act was introduced to ensure employers pay all wages in accordance with the compensation agreement.
If an employer fails to pay wages within 14 days of a written demand, an employee is entitled to all wages and compensation.
Apply for UI ASAP
If you were laid off by your employer, consider applying for Unemployment Insurance (UI) to protect your finances.
As you’re only entitled to benefits from the day you applied, it’s best to file for UI as soon as possible.
Unfortunately, an employee fired for gross misconduct is unlikely to be eligible for UI. However, they have a right to appeal.
Review Your Healthcare Plan
If your health insurance plan was connected to your job, you may need to review it to protect your finances following a medical emergency.
For instance, many professionals turn to COBRA after a job loss, as they can retain their employer’s plan for approximately 18 months. However, they are financially responsible for 102% of the premium, like employers.
The ACA Marketplace is, however, a cheaper alternative to COBRA, as a lower income automatically qualifies you for tax credits. As job loss is regarded as a Qualifying Life Event, you will have up to 60 days to sign up for the plan.
Defer Debt
It’s natural to worry about your finances if you’ve been fired or let go from your job; however, it might provide peace of mind to know that you could defer high-interest debt.
For instance, consider applying for Unemployment Deferment if you have a federal student loan, or you could swap to an Income-Driven Repayment plan if you don’t currently have an income.
Many credit card companies also provide hardship programs for customers experiencing temporary financial issues. A quick call might be all it takes to pause payments or lower interest rates for three to six months.
Don’t forget to cancel any unnecessary subscriptions to protect your cash flow, such as TV streaming services, gym memberships, or magazine subscriptions.
Update Your Resume
Once you have taken the steps to protect your finances, start updating your resume to quickly find a new job.
Aim to highlight your career accomplishments to encourage a company to choose you over other job applicants, and ensure your resume closely aligns with a job description. Also, ensure your resume is no more than two pages to maintain a recruiter’s interest.