Many families in Washington State have been financially challenged in recent years. If you anticipate a layoff in the near future, you may be feeling overwhelmed. You should know that there are steps you can take to lessen the financial impact of your loss on yourself and your family until you get back on your feet again like having an adequate emergency fund.
What To Consider
Know your financial position and insurance options
Hopefully you have been keeping a budget and have some grasp of your current financial position. If you don't have any idea what your current financial assets (such as the equity in your home) and liabilities (which could include your current mortgage payments and total credit card debt) are, now is the time to figure it out. The following financial tools will help you develop an understanding of these financial issues:
- What's it worth to reduce my spending?
- How much am I spending?
- How much should I set aside for emergencies?
- Should my spouse work too?
Study your employer's severance policy. If you will receive severance pay, use it as a bridge to get you through your period of unemployment. Spend it carefully, paying your financial priorities first including rent or mortgage, car payment, groceries and utilities. Also educate yourself about whether you'll be allowed to continue your health insurance benefits under COBRA if you lose your job and for how long.
You may need to purchase supplemental health insurance to cover your family's health and dental care needs. If your life insurance and disability coverage was provided by your employer, then you may want to consider purchasing your own policies to ensure your family's financial future until you get your next job.
In addition to reviewing your health insurance coverage, you will want to understand your options on what you can do with your 401k fund should you have one. Some plans will allow you to keep the funds where they are, while other plans may require you to rollover the funds into another qualified plan.
How Harborstone can help
Harborstone can help you plan ahead for the financial challenges of being unemployed. A Harborstone Financial Advisor can help you identify where you may experience a gap in insurance coverage. Through Harborstone you can acquire the insurance you may need until you land the next job. While you focus on getting a new job, we are focused on helping you meet your financial obligations. If you have retirement funds, like a 401k, with your past employer a Harborstone Financial Advisor can help you with your options for rolling the funds over into another qualified plan. To schedule a complimentary appointment with a Harborstone Financial Advisor, call (253) 589-8396 today.