Millions of Americans have lost their jobs this year – a devastating effect of the pandemic – and unfortunately there will be layoffs that may cripple people's finances.
In early October, American Airlines and United Airlines announced mass layoffs. Americans said 19,000 jobs would be eliminated; United estimated 13,000.
Disney Parks announced it will lay off 28,000 people – more than a quarter of its total workforce.
So if you have lost your job or are about to be laid off in the coming months, you need to take action immediately. If you are like most Americans and don't have convenient savings to fall back on, there are steps you can take to make sure you are not in a dire situation.
1. Apply for unemployment insurance
First things first: get your unemployment insurance handled. It can take weeks or more to take effect. The earlier you apply, the better. Even if you haven't been discharged yet, see what you need now so you can get started later.
Every state has different requirements. So, be sure to check the US Department of Labor website to find out how to start where you live.
2. Reduce your expenses
It's too easy to write it all down on your credit card and say you will deal with the balance later. However, if you've lost your job, depending on the credit card (and its high interest rates), you could run into even more debt later.
By cutting your expenses now, you can avoid adverse interest payments and reduce the impact on your emergency fund while you look for a new job.
One of the easiest places to start is to reduce your monthly bills – just like your current car insurance.
A free website called Savvy will help you find the best prices in just 30 seconds. In fact, it saves people an average of $ 826 a year. That kind of money could mean a serious job difference to you.
All you have to do is plug in your current insurance. Then Savvy searches hundreds of insurers for a better price on the same coverage. It even helps you cancel your old policy and get a refund from your current insurer. Best of all, it's completely free.
If you find a better deal, you can switch straight away instead of waiting for your next renewal or even your next payment.
3. Get a bridge job
The silver lining for this final round of layoffs is when many companies make their seasonal adjustments to prepare for the holidays. Performing part time over the next several months could help pay your bills and avoid too much damage to your savings account.
Walmart, FedEx, Kohls, Gap and others hire hundreds of thousands of workers. The destination alone has 130,000 seasonal openings. Amazon has 100,000 permanent positions to fill.
While this may not be your dream position, a bridge job can help you cope with the financial difficulties of losing a permanent income. Also, this is a great interview practice for your permanent job search.
If you get laid off, you could find yourself in dire financial straits. However, if you are smart the first few steps after cleaning your desk, you can make sure your bills are still getting paid and your savings account is not being hit as hard.
Ready to stop worrying about money?
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