10 Things to Do Right Away After Being Laid Off

Being laid off is stressful. You're probably frustrated, worried about the future, and at a loss for what to do next. It can take time to process this major change to your life, but there are some important steps you should take that really can't wait.

Here are 10 things you should do to set yourself up for future success as soon as you find out you're losing your job.

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If you're being laid off due to company issues and not because of poor job performance, be sure to request a laid-off letter from your employer if one isn't already provided to you. This should explain why you were let go and state that it wasn't due to any fault of your own.

It's a crucial resource in your search for a new job because it shows prospective employers that you weren't just fired. This may make them more likely to hire you than they would a candidate who claims to have been laid off but cannot prove it.

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Talk to your company's HR department to learn about when and how you'll receive your final paycheck. You might receive it right away or you may have to wait for the company to deposit it into your bank account or mail it to you. If it's coming as a mailed check, make sure your employer has your correct address on file.

You may want to inquire about whether you have any vacation, sick leave, or overtime pay still coming to you. This could make your final paycheck larger than you were expecting.

If you're on good terms with your employer, ask if you can use the company as a reference when you apply for a new position elsewhere. Make sure you ask for the appropriate person's contact information so you know what to tell prospective employers.

If you had health insurance through your job, you need a plan for how you'll get coverage going forward. You might be able to stay on your former employer's plan for a while, but your plan might suddenly become a lot more expensive because your employer is no longer subsidizing the cost for you.

It might be cheaper for you to seek out an individual health insurance plan. Normally, you can only purchase a new policy during the annual open enrollment period, but losing your job enables you to purchase new health insurance no matter the time of year.

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It's possible to leave your old 401(k) where it is, even after you leave your job. You'll still be able to access the funds. You just won't be able to contribute any more to the account. But often, this isn't the best move. Some 401(k)s are restrictive in the type of investments they offer, and juggling several retirement accounts can make it difficult for you to know what you have.

You might be better off rolling the money over into your new 401(k) when you find a new job, assuming your new employer permits this. Or you could roll the money over into an IRA. This will give you more flexibility to invest your money however you choose.

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Many laid-off workers qualify for unemployment benefits, which can replace some of your lost income for several months or until you find a new job. But who qualifies for benefits and how much you'll receive varies by state.

Check with your state's department of labor to learn about how to apply for unemployment. It may take a little while for the state to process your claim, so you might have to live off of personal savings at first. But it's still important to file right away so you get paid for all the time you were unemployed.

Once you know how much money you can expect from your final paycheck and unemployment and you have new health insurance, it's time to reevaluate your budget. Look at your average monthly expenses and see how that compares with the money you expect to have coming in until you find a new job.

If you have personal savings, you can rely upon that to help you cover the rest of your costs. Otherwise, you may have to consider cutting out or reducing some of your discretionary expenses until you secure a new job.

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Even if you're not feeling quite ready to start a job search, it's a good idea to update your resume while your notable accomplishments at your former job are still fresh in your mind. If you have an online resume, be sure to update this as well.

Create a basic resume that you're happy with, but be prepared to tailor it to each job you apply for. Review the job description for key words and phrases and try to work these skills into your resume if appropriate. But make sure not to lie about your skills.

Sometimes, finding a new job might be as simple as having a conversation with a friend. Even if they can't offer you a position, they may know someone who can. Be open to exploring these options, as well as jobs you find through a traditional search.

Talking to friends and family about your situation might also be cathartic. Sometimes, sharing your emotions can make the situation feel a little less bleak.

You don't have to start looking for a new job right away if you don't feel ready, but there is a good reason to start seeking opportunities right now. A record number of workers quit their jobs in August, and employers are offering unprecedented benefits in an attempt to attract -- and keep -- quality talent.

Check out a few online job sites to see what's available. Depending on your field, you may not even have to restrict yourself to jobs nearby. An increasing number of employers are offering remote flexibility, so consider widening your search beyond your current city.

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Getting laid off is never fun, but it's usually a temporary situation. Taking the above steps will help you protect your finances and begin the search for a new opportunity that better suits where you're at personally and professionally.

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