What Are The Best Ways To Manage Finances After Job Loss?

In some ways, it’s our greatest fear. Losing a job means losing financial security, the ability to pay bills, maybe even your home. Your job may currently feel stable and your career field always hiring. But a job loss can come without warning, seemingly out of nowhere.

The Wall Street Journal previously reported low rates of layoff for current US workers (66 per 10,000 claim unemployment benefits), but a recent study by ProPublica and the Urban Institute found for employees aged 50 and older, 56% will be laid off or asked to retire early.

Layoffs recently hit their highest level in a decade for the first quarter of the year reporting.

While there is still steady job-creation in the current economy and many areas where there are fewer applicants than positions available, it’s always best to be financially prepared before a layoff. And know how to manage your finances after a job loss.

Being laid off is certainly not the same as a severe illness or death. But losing a job can feel a bit like a death in the family, provoking the five stages of grief:

Unfortunately, many people get stuck in Stage 1, denial, far too long. Refusing to admit to friends or extended family they’ve been laid off. Refusing to change spending behavior. Or refusing to make…