Layoffs hit hard! They are traumatic and confusing. I know, I've been through 3 in my 20-year career.
There's a strong temptation to keep it moving, jump into action, and do SOMETHING. Instead, take a deep breath, and don't try to deny or ignore what you're feeling. Take some time to process what happened (it may take days) and then take action.
FIVE THINGS TO DO FINANCIALLY
1. Review Available Funds
How much. money do you have access to? (cash, CDs, investment accounts and even retirement accounts).
Calculate how many months of expenses your available funds can cover.
2. Review Your Expenses
Which ones can you stop or pause temporarily?
Consider reaching out to providers for reduced rates, payment plans or extended grace periods.
3. Protect Your Credit!
Make a list of your debts (house, car, student loans, credit cards, etc.)
Temporarily reduce your payments to the minimum required. Strive to maintain timely payments.
Contact providers to negotiate lower payments (there might be a corresponding rate increase but think of it as temporary.)
Your instinct might be to avoid contacting the lenders, but it's actually helpful to talk to them about options!
Determine which debt items you can permanently part with while incurring minimal consequences.
Explore debt consolidation options. Be careful not to fall for scams.
4. Maintain Health Insurance
What will your company continue to cover and for how long?
Check out the ACA options for your state. Don't automatically assume you won't qualify.
Can you get on your parents' plan?
5. Protect Your Retirement Plan
Don't immediately liquidate it, unless you have no other option.
Don't move it ... yet. It isn't urgent. You may get bombarded by financial advisors looking for your business and control of your investments. Take care of other things first, then tackle this with a clear head.
Your company may offer you access to financial planning services at no cost. Take advantage of them!
When you're ready, you can choose to leave your retirement plan where it is (some plans allow that) or roll it into a Rollover IRA at a brokerage firm (Fidelity, Vanguard, Schwab, etc.)
Breathe. Once you start taking action, you will feel a little better and in control again. Need additional help? Schedule a 30-minute complimentary financial planning session.