Protect Your Finances in a Layoff

Concerned about a layoff? 

If you’re concerned about losing a job, prepare now by searching for job openings. What skills and certifications make you marketable? Do you have a current resume? I experienced a layoff back in the ‘80s. There are several things you can do to protect your finances, and if you’re wise, you’ll see the red flags and begin preparing before it happens. Make sure you understand your severance package before signing it. Read the fine print and get your questions answered. Don’t sign any waivers unless you understand the terms. Determine your health insurance coverage. Check into COBRA, coverage through your spouse, or a group-share option like Christian Healthshare co-ops. Protect your 401(k) or 403(b) retirement account. You can roll it over to a new employer’s plan or an IRA. Know the options so you avoid paying any taxes and penalties.

If you file for unemployment, it can take several weeks before benefits kick in. So, immediately reduce all your variable spending. Contact your creditors and ask for payment options. Update your resume and begin the job search. Reach out to people in your network and maintain good relations with your previous employer. Above all, “Be anxious for nothing, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all comprehension, will guard your hearts and your minds in Christ Jesus.” (Philippians 4:6-7)

And if job loss created credit card debt for you, I recommend Christian Credit Counselors. They’ll create a debt management plan specifically for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.