Losing a job is typically a major financial blow, particularly if the termination is unexpected and backup plans haven't already been made. It can be a very stressful time, and money management is certainly a factor in that. If you are smart about it, however, you can help yourself get through this obstacle with as little pain as possible.
1. Apply for Unemployment
Filing for unemployment in Nevada means determining if you are eligible, preparing the right documents, submitting your application, checking the status of your claim online, and filing a weekly claim to continue receiving benefits. The Nevada Unemployment Insurance website has information, as well as resources, such as videos, to help you through the process.
2. Get Your Insurance Figured Out
You'll also need to make sure you have health insurance. If you were receiving insurance through your employer, you'll have to determine your next steps. As Trina Paul at CNBC notes, there are several options for health insurance when you lose your job.
"You can gain access to healthcare through a spouse’s or parent’s plan (if you’re under the age of 26), enroll in continued coverage through your current employer via COBRA or enroll in a plan through the Affordable Care Act (ACA) Health Insurance Marketplace operated by Healthcare.gov," Paul explains.* "If you lose your job and access to your employer’s medical insurance plan, it’s considered a qualifying life event and you’ll have 60 days to apply for a plan through the Marketplace—generally, if you plan on joining a spouse or parent’s plan, there’s a special enrollment period of 30 days."
3. Focus on the Essentials
Losing your main source of income means that you have to focus on what's most important.
As Ramsey Solutions** says, "If you already budget, it’s time to trim the fat—aka get to the real meat of your budgeting priorities. If you don’t budget yet, this is where you start. When you’ve had a job loss, make sure you focus on covering your Four Walls first: food, utilities, shelter and transportation. In other words, you feed your family, keep the lights on, pay the rent or mortgage, and put enough gas in the car to get where you need to go. Those are your budgeting priorities with this new drop in income."
Focusing on the essentials means cutting out extra expenses and, for the time being, reevaluating any extra debt payments you may have been making until you're in a more stable financial situation.
4. Be Careful with Your Retirement Savings
Tapping into retirement savings to help make ends meet may seem tempting, if it’s an option that's available to you, but it should really be a last resort. Withdrawing funds now can hurt you when you're ready to retire unless you're able to make it up in the meantime. You may also face penalties for early withdrawal if you have an IRA or 401(k). Look into the exact terms of your arrangement, and proceed with caution.
5. Utilize a Budgeting App
You'll need to adhere to a strict budget until you are able to find employment, and there are plenty of budgeting apps available for your smartphone that can help you with that. Take a look at the app store on your phone and look at reviews and ratings. Test out a few to determine which one you like best, and then put it to use.
6. Find Other Sources of Income
Try to find some quick sources of income while you're in between jobs. This may be holding a yard sale, selling items online, participating in paid market research, donating plasma (which also benefits others), finding house sitting or pet sitting gigs, and looking for other opportunities online. In the era of the gig economy, there are a lot of options out there. Just make sure you are complying with the terms of your unemployment benefits. You will need to report income.
Losing a job is a tough situation to deal with, but smart money management during your unemployment may help you get through it until you find your next job.
If you need financial assistance and advice, please feel free to contact your banker for help: https://www.nsbank.com/personal/schedule-appointment.
* https://www.cnbc.com/select/how-to-manage-your-finances-after-a-job-layoff
** https://www.ramseysolutions.com/budgeting/budgeting-after-job-loss