She Strengthens

Navigating Financial Uncertainty: A Step-by-Step Guide

Understanding Your Situation

Tens of millions of Americans have lost their jobs due to the pandemic, leading to financial stress and uncertainty. If you’re among them, it’s essential to understand the specifics of your situation. Whether you’ve been furloughed, laid off, or fired, there are key differences that affect your benefits and next steps.

Furlough vs. Layoff vs. Fired: What’s the Difference?

If you’re furloughed, you’ll take fewer hours or unpaid time off, resulting in a pay cut. A layoff, on the other hand, means your hours are cut altogether, often with the goal of re-hiring when the company’s economic standing improves. Being fired means you’re let go from the company altogether, sometimes due to performance issues, but also due to circumstances beyond your control.

Eligibility for Unemployment Benefits

The good news is that if you’ve been furloughed, laid off, or fired, you’re eligible for unemployment benefits. The amount will vary based on your situation, but it’s a crucial step in alleviating financial stress.

Taking Action

File for Unemployment

The federal government has relaxed guidelines for filing for unemployment. Check with your state’s unemployment program for specific rules and requirements. You’ll need your Social Security number, banking information, and work history, including contact information for your employers and employment dates.

Stimulus Check and Bill Providers

Check your payment status for your stimulus check on the IRS website. Communicate with your bill providers, landlord, and lenders to explore COVID-19 relief strategies, such as temporary payment suspensions or restructuring debt payment plans.

Budgeting and Prioritizing Bills

Create a new budget based on your unemployment income, severance, and other funds. Prioritize your bills and expenses, and consider seeking guidance on managing debt.

401(k) and Health Insurance

If you have a 401(k) plan, understand where your money is and explore options for keeping or rolling over the account. If you’ve lost your health insurance, look into programs like COBRA and the Affordable Care Act for affordable healthcare options.

Finding New Employment

Start looking for new job opportunities, and don’t hesitate to reach out to professional connections for advice and support. Update your network on your job search process, and utilize resources like job sites and university career departments to aid in your search.

By breaking down your options into manageable steps, you can navigate the complexities of financial uncertainty and find a path forward.