With unemployment growing and more companies downsizing, it is important to be prepared for a lay-off. A recent Yahoo! HotJobs article lists the top 10 things to if you are laid off that will help keep you financially afloat and ready to hit the job market again.
First, make sure to file for unemployment benefits and COBRA insurance coverage even if you are unsure about your eligibility. Protect your credit and monitor your budget by notifying your lenders of your new status and asking for temporary payment reductions.
In terms of 401(k) resources, try to avoid using this fund source. Payne & Fears LLP attorney Leila Narvid warns that, “workers should avoid taking money out of a 401(k) plan, as they could lose a large portion of it to taxes and penalties and the amount they withdraw will be added to their income.”
There are many resources for job hunting, too. One-stop career centers house networking and job opportunities as well as retraining tips and seminars. Narvid notes that many community colleges offer free or discounted tuition to unemployed workers. Additionally, printing business cards, updating your resume, and creating a LinkedIn account will help you network.
Finally, ask your children’s summer camps if they offer scholarships or financial aid, explaining your circumstances. Check what options are available before foregoing the opportunity.