Get Furloughed or Laid Off? Do These 15 Things Right Away

More than 36 million Americans have lost their jobs in just a two-month span due to the COVID-19 crisis, and there's no telling just how long it will be before the country returns to normal and everyone can go back to work. That uncertainty can be concerning, especially if you've lost your job recently. While you may not be able to control how long the coronavirus pandemic lasts, there are several things you should do if you're furloughed or laid off.

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It may be tough to find another job during the COVID-19 crisis, and unless you have a hefty emergency fund, you'll likely need some source of income to make ends meet until you can start working again. How much you can receive in unemployment benefits depends on your prior earnings as well as where you live, because each state has different regulations. However, under the CARES Act, unemployed workers are eligible to collect an additional $600 per week in benefits through the end of July. By taking advantage of that extra cash, it may help make these difficult times a little easier.

ALSO READ: How High Will Unemployment Levels Climb in 2020?

Whether unemployment benefits aren't enough to pay the bills or you're just looking to make some extra cash, picking up a side hustle is a wise idea. Although some side gigs are more realistic than others right now (it may not be the best time to start a gig as a rideshare driver, for example), there are plenty of side gigs you can do from the comfort of your home. You may take up freelance writing or editing, for instance, or start selling handmade arts and crafts online. The opportunities are endless if you're willing to get creative.

If you've recently lost your job, now is one of the best opportunities to comb through your budget and make adjustments. Map out all your expenses, then consider which ones you can cut. No adjustments are too small, and if you can trim even a few dollars per week, that can add up over time.

If you still have some emergency savings left, pat yourself on the back. Nearly 40% of Americans either never had any emergency savings to begin with or already spent all that cash, according to a survey from Clever Real Estate. Because there's a chance you could be unemployed for a while, do your best to avoid burning through your savings too quickly. Make as many budget cuts as you can afford to limit your spending, and try to lean more on unemployment benefits to help your savings last as long as possible. Also, if your savings are stashed in a high-yield savings account, leaving your money alone longer will help you rack up more in interest.

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It can be tempting to dip into your retirement fund if money is tight, especially now that the CARES Act has temporarily loosened the restrictions around retirement account loans and withdrawals. However, tapping your retirement savings should be your very last resort. If you withdraw money from your 401(k) or IRA, you'll owe income taxes on that money -- which could make for a hefty tax bill. In addition, every time you take money from your retirement account, you're making it harder for your savings to grow. That means you'll need to supercharge your savings later or risk falling off track for retirement.

ALSO READ: 55% of Americans Are Changing Their Retirement Savings Strategies Due to COVID-19

Just because you're out of a job right now doesn't mean you can't prepare to find a new one. Take some time to polish your resume or LinkedIn profile so you'll be ready when the time comes. There will likely be a lot of competition once businesses are ready to start hiring again, so by taking some extra time to update your resume, you can stand out from the crowd.

Some people may be itching to find a new job ASAP while others may want to wait it out a little longer. Some people are earning more in unemployment benefits than when they were working, which creates little incentive to go back to work. Other people may still be cautious about catching COVID-19, choosing to stay at home a little longer. If you're deciding whether to go back to work, think about how much you could potentially be earning if you find a new job and how that compares to your income now. Also be sure to consider factors like health insurance, because if you lost your insurance when you were laid off, it may be extra important to find a new job soon.

If you've decided you do want to start looking for work, reach out to people you know who are still employed to see if they know of any open positions. The companies that are still hiring might be stretched thin right now, so they may not be advertising new jobs on career sites. One of the best ways to get your foot in the door, then, may be to contact someone in your network and see what's available.

Losing your job at any age can be devastating, but it's particularly difficult for those nearing retirement age. If you were planning on retiring in a few years and you've lost your job, you may need to adjust your retirement strategy. You may simply choose to retire early if you can't find another job. Or if you need extra time to save (since you're likely not saving as much if you've lost your income), you may start working again and then hold off on retirement for a few years to give yourself extra time to prepare.

ALSO READ: 4 Retirement-Planning Tips in the Time of Coronavirus

If you're at least 62 years old, you're eligible to begin claiming Social Security benefits. Whether it's the right decision to claim early, though, will depend on your situation. Claiming early will result in smaller monthly checks, but if you've lost your job and have decided to retire early, claiming early can make it a little easier to make ends meet. But if you're planning on holding out for another job and working a few more years, you may want to delay claiming Social Security benefits to earn bigger checks.

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If you're struggling to afford basic necessities, you may be able to reach out to local nonprofits for help. Organizations like Feeding America are providing assistance to those who can't afford food, and some schools are also offering free meals to those who are experiencing financial hardship due to the coronavirus. There are even some animal shelters donating pet food to those who can't afford it, so don't be afraid to research what kinds of resources are out there and ask for help.

Your mortgage or rent is likely one of your largest monthly expenses, so it's worthwhile to reach out to your lender or landlord to see if there are any assistance programs. Some lenders or landlords may allow you to temporarily delay making payments, and others may waive late fees and other penalties. Each organization is different, so if you're struggling to pay your rent or mortgage, reach out and see what options are available.

Similarly, if you're having trouble paying your credit card bills or other debt payments, see if there are assistance programs that can help. Many banks and credit card issuers that have these programs offer assistance on a case-by-case basis, so get in touch with your creditors to see whether you qualify for financial relief.

By doing a little digging into the fine print in your insurance policies, you may find additional financial relief. For instance, if you have job loss mortgage protection insurance, you may be able to suspend mortgage payments while you're unemployed. Or if you've tested positive for COVID-19, short-term disability insurance could cover a portion of your paycheck while you're unable to work.

ALSO READ: How to Handle Health Insurance If You're Now Unemployed Due to COVID-19

If you need money right away, you might be tempted to obtain a short-term loan, also called a payday loan or cash advance loan. These types of loans provide cash quickly, but they come at an extraordinary price. Short-term loans carry extremely high interest rates (sometimes as high as 400%), so if you don't pay back the loan amount quickly, the interest charges add up. When you've lost your job and are already strapped for cash, a payday loan could bury you in debt if you're unable to make payments on time.

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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Millions of people are out of work, and nobody knows exactly what the future may have in store. If you've lost your job due to COVID-19, now is the time to take action. By finding ways to save money and make the most of your situation, you can set yourself up for a brighter financial future.

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