May 9, 2011
Layoff Finances 101
Do you know how to weather the financial challenges of a layoff? Here are a few ways to prepare for the possibility of unemployment, no matter how secure your job.
Most people will probably lose a job at some point in their lives. It’s important to know how to weather the storm. Here are a few tips:
• Find out in advance whether your employer offers severance benefits and what a typical package contains.
• Sign up for unemployment benefits if you’re eligible. The waiting period is based on when you file, so apply immediately.
• Examine your budget and look for non-essential expenses to trim.
• Seek additional income by renting a spare room or selling unneeded items.
• And, resist the temptation to withdraw from your 401(k) plan to cover expenses; you’ll pay a big penalty and cripple your retirement savings.
Bottom line: If you do get laid off, cutting your expenses and cashing in on benefits is the best way to keep yourself covered.
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