Laid Off? Here’s How to Take Care of Your Finances—and Yourself

Losing your job can feel like the ground has shifted beneath your feet. Whether it happens suddenly or after weeks of rumors, the emotional and financial impact is real—and heavy.

With tech giants, media firms, and even government agencies trimming their workforces, more Americans are facing the uncertain reality of unemployment. But while a layoff can hit hard, there are practical and emotional steps you can take to get back on your feet—stronger and more grounded than before.

Here’s what experts recommend to help you navigate this tough transition.

Step One: Take Time to Breathe and Process

Don’t rush into job boards just yet. Take a moment to feel what you’re feeling.

“Losing a job is a major life event, and it’s normal to experience a range of emotions—anger, sadness, even relief,” says financial therapist Lindsay Bryan-Podvin. “But it’s not a reflection of your worth.”

Before making your next move, allow yourself space to process and regroup. Mental clarity will be your best asset in what comes next.

Step Two: Review Your Financial Situation

With or without a severance package, now’s the time to revisit your budget and make a financial game plan.

• Know your numbers: How long will your savings last? What’s your monthly overhead?
• Trim where you can: Look for temporary cuts to nonessential spending.
• Apply for unemployment ASAP: Even if it won’t fully replace your income, benefits can help you stay afloat. The Department of Labor has a helpful guide to get started.

Step Three: Rethink Your Spending—But Be Kind to Yourself

Budgeting during unemployment isn’t just about spreadsheets—it’s about mindset.

“In a layoff, every dollar needs a job,” says Jesse Mecham, founder of the budgeting app YNAB. Whether it’s rent, groceries, or savings, assign each dollar with intention.

That said, don’t let budgeting steal your joy. Bryan-Podvin suggests thinking of spending cuts as a temporary pause—not a lifestyle downgrade.

Step Four: Resist Leaning on Credit

While using your credit card might seem like a quick fix, overreliance can backfire.

“If the job search takes longer than expected, credit debt becomes a burden,” Mecham warns.

Instead, look for ways to stretch your dollars now, so you’re not stuck paying more later.

Step Five: Tap Into Community Support

There’s no shame in seeking help. Many communities offer temporary hardship programs for essential services like utilities, groceries, or transportation.

Check out USA.gov’s Benefit Finder to explore what’s available near you.

Step Six: Be Strategic About Your Job Search

Don’t just update your résumé—rethink your goals.

Career coach Marlo Lyons recommends asking yourself: Do I want the same kind of job, or is it time for a change?

• If you’re staying in the same field, focus your résumé on what you can do next, not just what you’ve done before.
• Reconnect with old colleagues, join online networking events, or pick up a certification to sharpen your edge.

Step Seven: Stick to a Routine

Without the structure of a 9-to-5, days can feel unmoored. That’s why creating a daily routine is essential.

“Eat at your regular times, make space for exercise, and schedule focused time for job applications,” Bryan-Podvin says.

Above all, don’t isolate yourself. Stay connected to friends, family, and community—it’s one of the most powerful tools for emotional resilience.

Bonus Tip: List Your Non-Financial Assets

Your job is not your identity.

Bryan-Podvin encourages clients to write down personal qualities that make them valuable beyond work—what she calls a “non-financial asset list.”

“Mine would include being a good partner and a fun aunt,” she says.

That reminder? You are still you—resourceful, talented, and capable of rebuilding.

Bottom line: Getting laid off is hard, but it’s not the end of your story. With a clear plan and a little self-compassion, this chapter could be the beginning of something better.