How to Manage Money After Job Loss

Begin a new job search immediately.

Losing a job is a stressful experience. It is important that you come to terms with the situation and look at ways to best manage your money while you are unemployed. Read on to learn how to manage money after job loss.

Instructions

1. Begin the search for another job immediately. Let everyone know you are looking for a job. Determine if this a good time to get further education or consider other career options.

2. Don't make any hasty decisions. Review any severance package carefully. If you are uncertain about it, have your accountant or lawyer review it with you.

3. If you are eligible, file for unemployment insurance immediately.

4. Maintain your health insurance. See if your former employer will continue coverage for you or if you can convert from the group policy to an individual one. If possible, switch to your spouse's insurance plan or obtain private coverage. You can always continue your employer's coverage through COBRA.

5. Create a budget and emergency spending plan. Review your sources of income, expenses, bills, savings and other resources. Be realistic about what changes you can make. Defer any major purchases. Talk to creditors about delaying payments or consolidating your debt.

6. Avoid dipping into your children's college funds or your retirement funds. Consider tapping into your home equity.

Tips & Warnings

• Consider government or private assistance.

• Avoid filing for bankruptcy if at all possible.

• Talk with a financial planner.