By Brenda L. Peterson, The Layoff Lady

When your “day job" ends, many things in your financial life change. For one, what is for many people their primary source of income, ends. This often prompts a quick shift to a short-term survival mindset that will last from the layoff event until the first paycheck from that new job arrives. 

After you think about your overall survival budget goals and managing expenses, think about your sources of income during your career transition.

Disclaimer: (You know there has to be one of these now that we're talking about topics like personal finances and health insurance.)

While I know quite a bit based on my previous work experience supporting financial coaches, my own research, and my personal life experiences, I do not currently hold a license or certification to give financial advice. Therefore, the information provided here is educational information provided as guidance.

​I hope you can glean value from my lessons learned. Feel free to take my recommendations or not—but whatever you do, double-check my facts (and everyone's facts, for that matter). This is your life, and you will care more about your finances and health care than anyone else. With that, read on. 

When you’re gainfully employed, usually a couple of times per month, you receive your paycheck. Your taxes are deducted according to what you set up.  You also typically have deductions for health care costs, company-sponsored insurance benefits (life insurance, disability insurance), and company-sponsored savings (Flexible Spending Accounts, Healthcare Savings Accounts, retirement contributions). Once that company no longer employs you, your income changes significantly.

While you won’t have the income from your job on a go-forward basis, you may have one or more of these types of money coming from that employer after your position ends.

​You will receive a payment for any hours worked for which you still need to be paid. Typically, this check will not include deductions for health insurance or any other benefits since you no longer participate in those programs. In addition, taxes will be withheld from this payment.

Depending on multiple factors, you may be paid for any PTO you had accrued but had not yet taken. For example, if the company you worked for had “Unlimited” paid time off, you will not receive any vacation payout since there was no tie between accruing and taking time off.

In addition, some companies have written into their company policies that they do not pay out vacation time after an employee no longer works there. However, some states require vacation payouts from previous employers. (I know this because Nebraska, my current state of residence, is one of those states.) Know that getting a payout is not guaranteed, but this is definitely something you should investigate to see if you are eligible.

A severance package may be a component of your layoff. Severance could include a lump sum, continuation of insurance for a period of time, and/or support services to help you transition to a new position outside of that organization. In many cases, companies do not have to provide any sort of severance. If they offer severance, it is often to help minimize the likelihood of former employees taking legal action after a layoff. It is also a way that companies help their employees financially during that difficult transition time. 
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If you do receive a severance payment, the amount can vary wildly. It could be between a fat lot of nothing, to the equivalent of a paycheck, to 1-2 weeks of pay for each year you were with the organization, to a larger check equaling months of income. It depends on the organization, their financial position, how they want to be perceived by the media during the layoff, or any other factors. If you receive a severance payment, realize that it may be less money than you anticipated because of withholding taxes.

If you are offered a severance package, realize you must sign something before receiving a payment, benefits, or any other services promised. Once you sign, any thoughts you might have about legal action regarding your employment with the organization are pretty much over. Read the agreement given to you, consider having a lawyer look it over, and ask for clarifications (and any revisions) before signing it. After that, there is typically a waiting period before you receive that money. This is big-time adulting here, so enlist help as needed. 

While your regularly scheduled income from your previous employer ends, in most cases, with a layoff, you will be eligible for unemployment insurance (UI) benefits. In short, apply for UI benefits. Remember--this is money that you paid into your state government while you were working. There is no shame in collecting unemployment because it is literally your money that you paid in and get to use for this purpose. 

Here are a few key details about UI payments:
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• each state handles Unemployment Insurance (UI) benefits.
• You can only collect UI benefits from one state at any given time.
• The amount of your UI benefits payment varies by state and factors in your previous income while working.
• You may be able to decide whether or not to set up deductions from your UI benefits payment. However, come tax time, unemployment income is taxable.
• You complete an online application for UI benefits to determine eligibility and payment amount.
• Payments are issued weekly.
• You apply for each payment weekly, usually online or via phone.
• There is typically a waiting period before you will receive your first payment.
• Payments typically last for as long as 26 weeks, with some variation by state.
• You stop being eligible to receive unemployment payments until you are past your maximum benefit period or have a new job, whichever comes first.
• Doing paid work while receiving UI benefits may impact the amount of one or more payments.

​You may also be eligible for job search support services and even programs to help you upgrade your skills. In many states, you must complete outlined “reemployment activities” to stay eligible to receive unemployment payments. For example, some states may require you to apply for a given number of jobs each week, or attend classes, or confirm you did not turn down a suitable job offer.

Also know that if you will be receiving a severance payment, it will impact when you are eligible to start receiving unemployment payments. When you apply for unemployment, you will be asked to specify any payments you still expect to receive from your previous employer. Typically, if you are receiving severance that is intended to cover a set period of time, you will also not be eligible for unemployment payments during that time. Personally, I had periods when I was in a career transition where I never received an unemployment payment because I started a new job before the number of weeks specified for my severance ran out. Again, if you’re unsure on details, make that phone call to ask for clarification.    

Depending on your situation, you may need to find interim work while looking for a more permanent role. For example, if the amount you receive from UI benefits needs to be increased to pay your core bills, you may need to take a job to make ends meet. This could be anything from contract work in your chosen field (that may pay pretty close to your previous full-time job) to a supplemental job that you do for a little extra income. If you have a partner, it may be a case where they take on additional paid work or help more with expenses while you are in career transition. 

There are multiple ways to pay for your life, varying from good to decidedly bad ideas. You could do anything from using your savings, to selling unused items, to using credit cards, to acquiring additional debt, to using your home equity, to taking money out of your HSA account (and paying taxes on what you removed), to starting a Go Fund Me page, to donating plasma, or even tapping into retirement accounts (and paying a steep penalty). Be sure to consider the short and long-term implications of any of those decisions before choosing your course of action.

By Brenda L. Peterson, The Layoff Lady

When your “day job ends,” many things in your financial life change. For one, what is for many people their primary source of income, ends. This often prompts a quick shift to a short-term "survival" mindset that will last from the layoff event until the first paycheck from that new job arrives. 

Let's talk about your new financial goals and how to manage expenses.   

Disclaimer: (You know there has to be one of these now that we're talking about topics like personal finances and health insurance.)

While I know quite a bit based on my previous work experience supporting financial coaches, my own research, and my personal life experiences, I do not currently hold a license or certification to give financial advice. Therefore, the information provided here is educational information provided as guidance.

I hope you can glean value from my lessons learned. Feel free to take my recommendations or not—but whatever you do, double-check my facts (and everyone's facts, for that matter). This is your life, and you will care more about your finances and health care than anyone else. With that, read on. 

When gainfully employed, your household financial goals may look like this: 
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• Pay monthly bills on time and in full.
• Spend money on things that you need and enjoy.
• Save in a Health Savings Account (HSA).
• Save for retirement.
• Pay down debt.
• Give to causes you care about.
• Save for short and long-term goals. 

Typically, goals include living within your means and spending/saving/giving money in line with your values and financial priorities. When things are going "as normal," you probably have the capacity to think about current activities and consider what is possible in the future.

During a career transition, financial priorities shift from being proactive to focusing on the here and now. The goal is to get through the next one to six months with as few adverse effects as possible. Here are my recommendations for crucial goals to keep in mind during a period of reduced income and job transition: 
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• Pay monthly bills on time and in full (or make other arrangements).
• Prioritize money on things that you need in the short term.
• Find ways to enjoy your life that have a smaller price tag.
• Minimize and delay expenses.
• Preserve your credit score.
• Tap savings as needed. Use retirement savings as a last resort.
• Minimize the amount of debt incurred.

​While navigating post-layoff unemployment, the goal is to make it through with as few bumps and bruises as possible. Instead of trying to pay off a previous purchase or save for a goal, you will probably leave any “extra” money in your checking account just in case. 

This is also a good time to see what expenses you can pare down in the short term to ensure that the money you do have lasts a little longer. Here are a few ideas:
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• Review monthly bills and see what you can minimize, stop for a while, find a better deal, or delay.  
• Plan meals and buy groceries more mindfully to minimize waste.
• Make fewer restaurant trips and do more cooking at home.
• Meet people more often for coffee or a drink than dinner.
• Cut back on subscriptions (tv, music, audiobooks).
• Do more outdoor activities and YouTube exercise videos, and fewer gyms and in-person classes.
• Take fewer flying vacations and more day drives to local destinations or overnight trips to stay with friends and family. 

Here is a recommendation for prioritizing which bills you pay when money is tight:

• Rent or mortgage payments
• Transportation
• Phone
• Utilities: electricity, gas, heat
• Food (which is lower on the list because food help is more readily available)
• Minimum payments on debt

If you can’t pay your bills, call the company and discuss how to make arrangements. Instead of just plain NOT paying a bill, make a phone call. I know this can be hard and humbling, but it is important to figure out a plan. Remember, you're not the first person to be in a position where they had an unexpected job loss and needed to figure out alternatives. It is also to the company's advantage to work with you. It's in the company's interest to help you stay on track as a customer than for them to spend the time and staffing on repossessing items or turning off and on utilities. Help them help you.

Making this call also helps minimize damage to your credit score (which could even impact your ability to find work sometimes). Be sure to call right away when you start to have issues instead of waiting until you have a lot of issues. I encourage you to call when you worry abouat having a hard time making one mortgage payment instead of waiting until you are months behind. Remember, though, even if you have waited, MAKE THAT CALL! 

When working with a company on making payment arrangements, you may be able to defer payments, figure out a payment plan, take advantage of a company-sponsored program, or find a government-sponsored program to help you during a hard time. County, faith-based organizations, and non-profits may be able to help you, too. Whether you need help paying for gas, food, transportation, or utilities, make sure to use the available resources.

by Brenda L. Peterson, The Layoff Lady

Life is challenging when nothing in particular is happening. When you're going through a job change (especially one you didn't plan), it's even harder. While I'm a fan of self-reliance, I also know the value of finding people who want to support you and letting them do it. You're not weak for needing people. You are smart for planning ahead for what you will need.

I have been through a post-layoff job transition 7 times, and it is difficult each and every time. There is the fear that it will just never end and you'll be drifting for eternity trying to find paid work where you can pay your bills--much less in a job you want. You worry that you'll have to settle for something that may be even worse than the worst job you've ever had. You also worry that you'll run out of money and not be able to pay your bills and lose everything you own and everyone you've ever loved. While your rational mind knows this is all pretty unlikely, there will be moments when it all seems hopeless. That's where your support network comes in. 

No matter how resilient and downright badass you are, doing this alone makes it way harder. 

As an extra added bonus, people want to help you!

I'm always inspired by people who come out of the woodwork to check on me, tell me about an open position, thank me for helping them once upon a time, or offer to refer me for a role. Everyone has struggled with something at one time or another, and someone has helped them. Let other people help you. 

It also takes a village to get you through a career transition. Relying on one person for everything is all kinds of stressful. Know that people want to help, and it's a matter of figuring out what you need, letting people know, and reaching out to people when you need it. Going through a job search is challenging even in the best of circumstances. If you're starting from a layoff (especially the part where someone else got to make a big, uninvited life decision for you) it can be even more challenging. 

Here's a starter list of the types of help you may need during your job transition. More specifically, here is some of what I needed. Use this as a starting point and add details as it helps you:

• ​Emotional Support: You'll have all the feelings. Figure out who you can talk to about what. Sometimes you'll laugh, sometimes you'll cry, sometimes you'll vent, and on the most trying days, maybe all of the above. 
• Communication: Just telling people what is up can be draining--because people. Realize, too, that you telling them about your situation may result in them inadvertently trying to allay their fears that the same thing will happen to them. Find a friend who can help you spread whatever news there is to convey. Telephone. Telegraph. Tell a Karla. Find those people who love to connect with others (and even share some of the same social circles) and enlist their help.  
• Sounding Board: When you're making big decisions--or doing something you don't do very often, having someone to talk things through will is mission critical. Personally, I don't even always need my sounding board people to say much--just to sit there and listen (or at least just not talk over me) as I talk myself into or out of the idea I'm considering. There is so much value to writing or talking through ideas as you choose your next steps.
• Logistical Support: Sometimes, you'll need a hand figuring things out. Maybe it's having someone to watch your kids for a bit so you can have a phone interview. Maybe it's help with a ride if you're having car trouble. Whatever it is, it may seem small to them, but it'll solve a problem for you. 
• Fun: There will be many, many times when you just need a distraction. Watching a movie. Having coffee. Talking about non-job search related things. Having a conversation where you don't have to be "on" and can just chat with someone. It doesn't have to be elaborate. It just has to be a welcome break from all those "shoulds" to be something other than a job-searching human.
• Cheerleader: You also need someone to give you a pep talk. Whether it's someone who'll send you a quick "You've got this!" text or someone to remind you to take a deep breath and tell them your remarkable story, remember that encouragement is essential. They can also help you celebrate successes and remind you of your innate value when you're struggling.
• Accountability: You'll also need someone to help you keep on track. It may be as easy as them asking if you applied for that job you talked about. Or asking you if you updated your resume like you said you would do. I have people I text saying I'll do a given thing just so I have written it down, and I have the peer pressure to help me follow through. 
• New Ideas: There is a certain amount of trial and error when looking for a new job. Whether it's optimizing LinkedIn, figuring out how to network with new people, finding the best way to position your work experience, or where to find jobs, there's a lot to learn. Whether you tap into someone who works in that industry, or a hiring manager, or a resume writer, figuring out how to be a more effective job searcher is useful. 
• Connectors: Each of us has people in our personal and professional networks who seem to know all the things and/or all the people. Let them help you connect with helpful people, job leads, or ideas when you need them. 

When it comes to help, I start with my inner circle--close friends and family. I'm also sure to widen my support team beyond them, too.

I also move beyond that immediate group. I interact with my LinkedIn connections. I tap into online groups including job search groups, The White Box Club, and even LinkedIn groups focusing on networking or a content area (like sales enablement).

I interact with in-person membership groups like ATD or the Omaha OD Network. Or I seek out non-work connections through social Meetup groups or activities. Sometimes, I just spend time in coffee shops to indirectly interact with other people. It's a matter of figuring out what you need and finding a person to help.

Know, too, that there will be times when you need to straight up reach out to someone because you need help. Each person will have their areas of interest and expertise, so be sure to keep that in mind when asking for help.

It's helpful to consider who you might contact for different needs. Here are a few cases where I reach out to different people to ask for help:
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• Before a job interview, I will text my daughter, telling her I have a job interview. She will then text back words of encouragement.
• If I need non-job search social interaction, I'll reach out to my former "lunch ladies" coworkers with a link to my Calendly and ask if they're up for a catch-up conversation (then they can pick a time that works for them for us to chat.)
• If I'm having a rough day, I'll reach out to my best friend via text or phone to talk a bit. 
• If I'm unsure if my resume is clear, I'll contact a former coworker for his insights on what I might want to change. 
• If I want to talk shop but not directly job searching, I'll contact a LinkedIn connection I haven't chatted with in a while and see if they are up for a virtual coffee meeting. I get to have a fulfilling interaction with another person and glean a few professional insights, too. 

You get up and get ready for work. It starts like any other day. Then, something happens that is a portent of doom:
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• An unexpected meeting (with an ominously ambiguous title) pops up on your calendar last minute. 
• You try to log into your work computer and are locked out. 
• You attend a hastily scheduled webinar where you find out that you and everyone else in the meeting is no longer employed with the company.
• You are called to an in-person meeting in a different room from your immediate coworker--and find that you are in the "bad room" of people who have lost their jobs. 
• You check your email on your phone to discover that today is the last day of your role. 

Whether you have a one-on-one (plus an HR representative) meeting with your soon-to-be-former boss or receive an awkwardly worded email that part of you thinks must be spam or a joke, you are now among the newly unemployed. 

Some days, you go to work with lots of plans and come home with a white box filled with all of your workly possessions. 

​Welcome to the suck.

It's hard to know what to do when you suddenly find yourself out of work. Even if there were rumblings about a possible reduction in force (RIF) at your company, it's still surreal when you realize your job is now over.

Whether you loved your job, hated it, or felt somewhere in between, it's time to deal with your current emotions, assess your current state, and (above all) not do anything particularly counterproductive as you figure out what to do with yourself. 

Based on the crazy number of layoffs I've navigated, here are my suggestions for your next steps. 

Curse you, feelings!

Losing your job, even through no fault of your own, is an emotional roller coaster. Given how much of your life you spend at work, suddenly not having the same job is a huge change. In fact, it’s the same level of change as things like getting divorced, having a close friend die, or going to prison. You may feel fine one moment, angry the next, then ecstatic, then in tears. Realize this is completely normal.

​Just like dealing with a death in the family, you’re dealing with the death of the future you thought you had. Losing that imagined future, regardless of your job’s role in your life, is a significant loss that needs to be addressed. Figure out how you will cope with these changes. You might choose positive ways (exercise, reconnecting with friends, journaling) or negative (overeating, overthinking, or a good old-fashioned bender). Find your emotional support people and confide in them. Talk to your partner, family, and friends. Find a support group (in-person, online, or both) to help you work through it.

As much as you may want to jump over the part where you have to admit you have feelings that influence how you live your day-to-day life, you need to address them—whether it happens now or later. During one of my layoffs, I was going through many new and exciting (read "stressful”) life changes all at once. Then, I compartmentalized and focused on the business of moving and finding a new job. Once I was in my new job, I pretty much worked during the day and went through the process of dealing with all of the life changes at night. Do what works for you.

As you process your feelings, be cautious about sharing right away (and/or in great detail) on social media. Give yourself 24-72 hours to feel your feelings and talk to the individuals in your support system offline. After you have had a little time to process, then decide what to post publicly. Be sure to get your head straight before sharing anything with the masses.

Disclaimer: (You know there has to be one of these now that we're talking about topics like personal finances and health insurance.)

While I know quite a bit based on my previous work experience supporting financial coaches, my own research, and my personal life experiences, I do not currently hold a license or certification to give financial advice. Therefore, the information provided here is educational information provided as guidance.

I hope you can glean value from my lessons learned. Feel free to take my recommendations or not—but whatever you do, double-check my facts (and everyone's facts, for that matter). This is your life, and you will care more about your finances and health care than anyone else. With that, read on. 

​Most of us work because we have expensive habits to support—like living indoors and eating on a regular basis. When a job ends, there are financial concerns that need to be addressed pretty quickly. The money coming into your household will change A LOT, and it's time to get your arms around those changes. 

While you won’t have the income from your job, you will receive your final paycheck, possibly vacation time that you have earned and, hopefully, a lovely parting gift from your former employer in the form of a severance package. 

If you do receive severance, the amount can vary wildly. In fact, it could be between a fat lot of nothing, to the equivalent of a paycheck or two, to 1-2 weeks of pay for each year you were with the organization, to a big old check from a tech firm doing widespread changes and wanting to be spoken well of in the media. As an extra added bonus, if you do receive severance, realize that it may be less money than you think because of taxes withheld or other various and sundry deductions. 

If you get a severance package, realize you will need to sign something before receiving that money. Once you sign, any thoughts you might have about legal action regarding your employment with the organization are pretty much over. Read the agreement given to you, consider having a lawyer look it over, and ask for clarifications (and any revisions) before signing it. After that, there is typically a waiting period before you receive that money. This is big-time adulting here, so enlist help as needed.

While your regularly scheduled income from your previous employer may end, in most cases with a layoff, you will be eligible for unemployment income. In short, apply for unemployment payments. The money used to make unemployment payments comes from the payroll taxes that employers pay. This money is intended to help people who have been laid off from their jobs to help fund the time it may take them to find a new, comparable job. 

Unemployment payments are administered by each state and vary from state to state. (I'll include a link at the end of this article.) After you apply for unemployment payments, there may be a waiting period before you receive a payment (in Minnesota, there is one "nonpayable week" before payments begin.) Your state will also outline the amount of each payment you will receive, the number of payments you are eligible to receive, and additional factors impacting your payments. You may also be eligible for job search support services and even programs to help you upgrade your skills. To learn more, visit this link and click on your state for additional details about unemployment and related benefits and services. 

In short, apply for unemployment income right away. In most cases, there is not a reason to forgo unemployment payments. 

​In the United States, where health insurance for people of working age is often employer paid, thinking through health insurance implications of a job change is critically important.

Since many people rely on their employer for health insurance coverage, figuring out this aspect can be tricky. If you are fortunate enough to have a  spouse/domestic partner/parent who can bring you onto their health insurance, check that out right away. In general, if you were covered by an employer's plan, and lose that coverage, you will be eligible to switch to another employer sponsored plan. Be sure to at least ask that question of that other potential employer-sponsored health care coverage.

If that's not an option, you have a few more decisions to make. If you do receive a severance package, health insurance coverage for some period of time may be included. Find out if your previously employer sponsored health insurance coverage is paid for by the employer, or if you will receive money to cover the cost of coverage. (These are two very different things.) You may also be eligible for COBRA coverage, which means that you would continue your previously employer paid health insurance, but pay for it yourself. Be sure to brace yourself when you see the amount that you will now be charged for that coverage--because it is usually A LOT more than you paid as an employee.

If you are not willing and/or able to continue with your previous employer's health plan, you may be able to go on the insurance exchanges to find coverage--which may even be subsidized given your new lower income level. Alternatively, for shorter term coverage against something super big and awful happening, you can check out short-term health care options. The coverage is not as comprehensive as what is on the exchange, but it's also way less expensive. Depending on your situation, you may also opt for the “be careful” health plan (no health coverage, but no sky diving either). Figure out what makes the most sense to you, and how to mitigate any risks you take.​

First off, this is A LOT of information to manage, and you don't have to do all of this alone. Be nice to yourself and know that you can totally do this.

Through my many, many layoffs, one thing has remained true. I have always ended up in a better place, both personally and professionally, than I would have expected. I learned new skills, met new people and made life changes that I probably needed to make, but I only did when life gave me the shove I needed

Remember, this whole process is a lot, but you can totally do this. I, for one, am here with information and resources to help you navigate some of the yuck as you create your new reality. You've got this. 

Even in cases where I was actively looking for a new role, a certain amount of anger goes along with a layoff. I was angry learning about the people who didn’t get laid off (like that guy whose messes I’ve been cleaning up for the last year) and comparing my perceived value to theirs.

​I’ve been angry at the timing (right after vacation, right before a holiday) and how that makes finding something new an even longer process. I’ve been mad that yesterday’s mission-critical work-all-night project has become irrelevant. But, mostly, I’ve been mad that someone else decided when I didn’t get to do that job anymore instead of me getting to choose when it was time for me to move on. Feeling that lack of control is often the most challenging part.

Exiting a job abruptly leaves a big hole in your life, starting with the 9+ hours per workday being replaced with dead air and uncertainty. People who earlier that day were coworkers, casual work friendships, or confidants now may be nothing at all now that you no longer share an employer.  

​The consistency of a morning routine, daily commute, and regularly scheduled meetings are replaced with a battle with the unknown that may last a week or a year. Sometimes it’s easy to be hopeful about the future, and other times it’s hard not to be mired in sadness about all the things you can’t control.

There is plenty to be afraid of. First, the idea of not having a paycheck is horrifying. Not knowing how long your final payout or severance check has to last is unnerving. Now knowing how long your jobless period will last and what job you’ll end up with is sometimes unbearable.

​I fear being unemployed endlessly and not being able to support myself. I worry about panicking and taking the first job offered to me. I worry about holding out for something closer to the “perfect” job that may never come. I fear that I will never get a job as good as the one I had. On the worst days, when fear has given way to full-on catastrophizing, I worry that I will lose my house, car, professional reputation, and everyone I’ve ever loved.

Here's the one that might seem unexpected. At one point, during an ongoing economic downturn, I made it until the seventh round of company layoffs. While I was happy to be employed that long, each time we heard rumblings about reorganizations or started seeing those empty white dots pop up on Microsoft Teams, I had that sick feeling in the pit of my stomach waiting for it to be me.

The strange benefit of finally being laid off is that you don't have to worry if it will happen (and when) because it just happened. At that moment, you also realize it's not as bad as you imagined it might be, and now what there is to do is pick yourself up and create your fantastic new future. 

Through the tumult of emotions, it’s important to acknowledge each one and process those feelings. It’s helpful to grieve, then focus on all the possibilities to come.