How to take care of yourself and your finances when you’ve experienced a layoff
NEW YORK—Recent layoffs from technology and media companies and government agencies might have you thinking about job security.
Losing your job is a difficult thing to process and you might feel the impact in several parts of your life. But there are things you can do to alleviate some of the stress and anxiety.
If you’ve been laid off, experts recommend that you first take a moment to process and then move on with a plan for your job search.
“A layoff can feel so personal but it’s not a reflection of your value or what you contributed. Especially in the United States, the work we do is so tied to our identity,” said Lindsay Bryan-Podvin, a financial therapist.
Here are some expert recommendations to help you take care of your finances and your mental health if you’ve lost your job:
Losing your job can cause a lot of stress and financial anxiety, so it’s important that you take time to emotionally process.
“Acknowledge and normalize that they’re going to feel a range of emotions, whether it’s anger or sadness,” Bryan-Podvin said.
Whether you are feeling sadness, shock, anger or even relief, taking a moment to feel those emotions can help you move forward.
To make plans for the future, it’s essential that you review your current financial situation, said career coach Marlo Lyons.
If you have a budget, take a closer look and review whether you have expenses that you can temporarily cut to save money. Lyons recommends that you know how long your severance package will last if you’re receiving one.
Applying for unemployment benefits as soon as possible can help alleviate some of the financial stress of a layoff. While the amount you get for unemployment might not be as much as your salary, it can help you to stay afloat for some time, Lyons said.
The Labor Department has tips on applying for unemployment.
Getting laid off from a job can affect your self-esteem, so Bryan-Podvin recommends that you create a list of good qualities about yourself that add to your overall value as a person. Bryan-Podvin calls this a “nonfinancial asset list.”
Self-worth
“If I were doing a nonfinancial asset list on myself I might say I’m a pretty good partner and a fun aunt,” she said.
When working with her clients, Bryan-Podvin recommends that they create this list to remind them that their self-worth is part of their net worth.
If you lose your job, you’ll need to be more strategic about your spending, said Jesse Mecham, founder of the money management app YNAB.
“In a layoff, it becomes even more imperative that you treat every dollar with more attention than you have in the past,” Mecham said.
Part of YNAB’s budgeting strategy is giving each dollar a job, whether it is to pay rent, buy groceries or add to your savings account.
When adjusting your spending, Bryan-Podvin also recommends that you approach this with some compassion. Since cutting back can bleed into not doing activities that make you happy, she recommends reminding yourself that this is a temporary pause rather than a permanent change in your lifestyle.
While utilizing your credit card to pay for some expenses is almost inevitable, it’s best to not completely lean on credit while you’re searching for a new job.
“If getting a new job takes them a little longer than they thought, that credit card has just become an anchor for them,” Mecham said.
Even though unemployment is temporary, Mecham recommends cutting expenses rather than keeping them at the same level and leaning on credit.
