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9 Strange Financial Lessons Learned From Job Loss

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9 Strange Financial Lessons Learned From Job Loss

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Losing a job is often one of the most stressful experiences anyone can face, but it also teaches lessons you might not learn otherwise. When income suddenly stops, priorities shift quickly, and you start to see money in a whole new light. Many discover surprising habits, strategies, and truths about finances only after experiencing job loss. While painful at first, these insights can become invaluable tools for building long-term stability. Here are nine strange financial lessons people often uncover when unemployment strikes.

1. Subscription Costs Suddenly Feel Huge

During steady employment, paying for multiple subscriptions feels normal. But when job loss hits, even small recurring charges like streaming services or apps seem excessive. You begin calculating whether you really need four different entertainment platforms or if one would do. This shift reveals how easy it is to let “little” costs quietly eat away at income. Canceling or pausing subscriptions teaches you the power of controlling recurring expenses.

2. Cash Is More Comforting Than Credit

When income stops, relying on credit cards can seem like the solution, but it quickly becomes a trap. Many people realize that having actual cash in savings feels far safer than access to credit. Cash provides flexibility without the added burden of interest charges or future payments. Job loss teaches that liquid assets are more reliable than borrowed money. That’s why building an emergency fund becomes a new financial priority.

3. Grocery Shopping Becomes a Game of Strategy

Losing a job turns grocery shopping into a budgeting exercise unlike any other. Suddenly, name-brand items lose their appeal compared to generics that save a few dollars. Every coupon, sale, or meal plan becomes a chance to stretch limited funds further. Job loss shows how resourceful you can be when faced with tough choices. Learning to shop strategically often sticks long after employment is regained.

4. Health Insurance Costs Are a Shock

One of the most eye-opening lessons after job loss is realizing how much your employer used to cover. Without workplace benefits, health insurance premiums can feel overwhelming. Many people scramble to find affordable coverage through COBRA or marketplace plans, often discovering huge monthly costs. This shift highlights how valuable employer contributions really are. It also stresses the need to plan for healthcare as part of any emergency budget.

5. Networking Becomes a Financial Skill

At first glance, networking seems like a career strategy, not a financial one. But after job loss, it becomes clear that the ability to connect with others directly impacts your earning potential. Opportunities often come through conversations, referrals, and relationships rather than online applications. Building a strong network helps reduce the length of unemployment and softens financial strain. Strange as it sounds, networking becomes one of the most valuable financial lessons.

6. Debt Payments Feel Heavier Than Ever

Paying off debt feels manageable with a steady income, but during a job loss, those same payments become stressful. Minimum payments on credit cards or loans suddenly feel like giant burdens. The experience teaches how fragile financial stability can be when debt lingers. Many realize the importance of paying down balances aggressively while employed. Reducing debt before job loss happens is one of the smartest ways to protect future finances.

7. Free Entertainment Feels More Valuable

When money is tight, expensive hobbies or outings no longer fit the budget. People experiencing job loss often rediscover the joy of free entertainment like walking in the park, borrowing library books, or hosting game nights at home. The shift proves that enjoyment doesn’t always require spending money. These free activities bring both financial relief and emotional balance. It’s a strange but refreshing reminder of how simple pleasures matter most.

8. Pride Takes a Backseat to Opportunity

After a job loss, many people find themselves considering opportunities they would never have entertained before. Temporary work, part-time gigs, or freelance jobs suddenly feel more appealing than waiting for the “perfect” role. This shift demonstrates that pride often blocks practical financial choices. The lesson shows that income in any form is better than letting savings drain away. Flexibility and humility become powerful tools for financial survival.

9. You Value Stability More Than Salary

Many people emerge from job loss with a new perspective on career choices. The highest-paying job no longer seems as important as one with security, good benefits, or a supportive environment. Stability starts to matter just as much as paycheck size. This strange lesson often changes the way people approach future employment decisions. The long-term reward of peace of mind outweighs the short-term thrill of a bigger salary.

Hard Lessons That Build Lasting Strength

Job loss may feel devastating, but it leaves behind lessons that can change the way you handle money forever. From valuing cash savings to appreciating stability over high salaries, the insights gained through this experience often last a lifetime. Strange as they seem, these lessons create stronger financial habits and greater resilience for the future. Sometimes, the harshest moments provide the clearest wisdom about money.

What unusual financial lessons did you learn from job loss? Share your thoughts and stories in the comments below!

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5 Steps You Should Take If You’re About To Be Laid Off

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Getting laid off can feel overwhelming and stressful. If you’ve heard rumors at work or received official notice, it’s normal to worry about your finances, next steps, and the uncertainty ahead. But taking smart action now can help protect you, your family, and your future. Whether you have days or weeks before your last day, these steps will help you navigate the transition. By knowing what to do if you’re about to be laid off, you can reduce the shock and start planning for what comes next.

1. Review Your Severance Package and Benefits

If you’re about to be laid off, your employer may offer a severance package. This could include extra pay, continued health insurance, or unused vacation payouts. Don’t just sign the paperwork—take time to read the details. Make sure you understand how much severance pay you’ll receive, when it will be paid, and if there are any conditions attached.

Ask your HR department about COBRA or other options for continuing your health coverage. If you have a 401(k) or other retirement plan, clarify what happens to those accounts. Sometimes, negotiating your severance is possible, especially if you have a long work history or unique skills. If you’re unsure, consider speaking with a lawyer or financial advisor to make sure you’re getting what you deserve.

2. File for Unemployment Benefits Promptly

One of the most important steps if you’re about to be laid off is to apply for unemployment benefits. Each state has its own process, so act quickly. The sooner you file, the sooner you’ll receive payments that can help cover your bills. Gather necessary documents, such as your Social Security number, pay stubs, and details of your job separation, before starting the application.

Keep in mind, unemployment benefits usually don’t replace your full salary, but they do provide a financial safety net. If you have questions about eligibility or the process, check your state’s unemployment website or reach out to your local workforce office for guidance.

3. Assess Your Finances and Cut Expenses

When you know you’re about to be laid off, review your household budget right away. Calculate how long your savings, severance, and unemployment will last. List all your monthly expenses and identify areas where you can cut back. This might mean pausing non-essential spending, canceling subscriptions, or negotiating bills.

Prioritize payments for essentials like housing, utilities, groceries, and insurance. If you have debt, contact lenders to ask about hardship programs or payment deferrals. Making a plan now will help you stretch your resources and avoid financial stress in the months ahead.

4. Update Your Resume and Start Networking

Don’t wait until after your last day to think about your next job. If you’re about to be laid off, update your resume and LinkedIn profile while you still have access to your work records and contacts. Highlight your achievements, skills, and recent projects. Reach out to former coworkers, mentors, and industry peers to let them know you’re looking for new opportunities.

Networking is one of the most effective ways to find a new job. Attend industry events, join professional groups, and consider informational interviews. Many people find their next role through referrals, so don’t be shy about asking for introductions or recommendations.

5. Take Care of Your Mental and Physical Health

The emotional impact of being laid off can be just as challenging as the financial side. If you’re about to be laid off, give yourself time to process your feelings and talk to supportive friends or family. Stress, anxiety, and uncertainty are normal, but you don’t have to face them alone.

Maintain healthy routines—eat well, get enough sleep, and exercise regularly. If you’re struggling, consider reaching out to a mental health professional. Many communities offer low-cost counseling or support groups for people in transition. Remember, taking care of yourself will help you stay resilient and focused as you move forward.

Moving Forward After a Layoff

Knowing what to do if you’re about to be laid off gives you the power to take control during a difficult time. By reviewing your severance, filing for unemployment, managing your finances, and updating your job search materials, you’ll be better prepared for what’s next. Remember to reach out for help if you need it, and treat this transition as a chance to re-evaluate your goals. Being proactive now can make a big difference in your financial stability and emotional well-being.

Have you ever faced a layoff? What steps helped you the most? Share your experience or questions in the comments below.

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7 Financial Risks That Appear After Sudden Job Loss

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Losing a job unexpectedly can shake your confidence and disrupt your financial stability. The impact goes far beyond the stress of updating your resume or searching for new work. Sudden job loss often exposes you to a range of financial risks that can quickly spiral out of control if you’re not prepared. Understanding these risks is key to protecting your savings, your credit, and your peace of mind. If you or someone you know is facing unemployment, knowing what to watch out for can help you make smarter decisions and stay afloat during tough times. In this article, we’ll break down the most common financial risks that appear after a sudden job loss and what you can do about them.

1. Rapid Depletion of Emergency Savings

The first and most immediate financial risk after a sudden job loss is burning through your emergency fund. Without a steady paycheck, you’ll need to rely on your savings for basic expenses like rent, groceries, and utilities. If you haven’t built up enough of a cushion, those funds can disappear faster than you expect. Even with careful budgeting, unexpected costs—like car repairs or medical bills—can speed up the process.

This is why experts recommend saving three to six months’ worth of living expenses. If you’re already in a tough spot, it’s important to prioritize essential bills and look for ways to cut non-essentials until your income returns.

2. Loss of Health Insurance Coverage

For many people, health insurance is tied to their job. Losing employment often means losing access to affordable health coverage. This leaves you exposed to major medical expenses if you get sick or injured while unemployed. COBRA coverage is available in some cases, but it can be expensive. Alternatively, you could explore plans through the Health Insurance Marketplace or see if you qualify for Medicaid, depending on your state.

Getting coverage as soon as possible helps prevent a bad situation from getting worse. Medical debt is one of the leading causes of bankruptcy, so protecting yourself here is crucial.

3. Falling Behind on Debt Payments

Sudden job loss makes it harder to keep up with monthly payments on credit cards, loans, or mortgages. Missing payments can lead to late fees, higher interest rates, and serious credit score damage. If you fall far enough behind, you risk foreclosure, repossession, or collections.

If you’re struggling, contact your lenders right away. Many offer hardship programs or temporary relief options. This proactive step can buy you time and help you avoid long-term damage to your finances.

4. Increased Reliance on Credit

When savings run low, it’s tempting to use credit cards or personal loans to cover bills. This can quickly lead to high-interest debt that’s hard to escape. Using credit as a short-term bridge can work if you have a clear plan to pay it back, but without a new income source, balances can balloon out of control.

Try to limit credit use to true emergencies only. Look for community resources, unemployment benefits, or side gigs before turning to high interest borrowing.

5. Disrupted Retirement Savings

Job loss often means pausing or stopping contributions to retirement accounts such as 401(k)s or IRAs. Some people even consider cashing out these accounts to cover immediate expenses. While this might feel necessary, it carries heavy penalties and taxes, and it jeopardizes your long-term financial security.

If possible, leave retirement accounts untouched and focus on other sources of support first. You can always resume saving for retirement once you’re back on your feet.

6. Risk of Housing Instability

One of the most serious financial risks after a sudden job loss is the threat of losing your home. Without income, paying rent or a mortgage becomes a struggle. Landlords and lenders may be willing to work with you temporarily, but ongoing missed payments could lead to eviction or foreclosure.

Reach out to your mortgage company or landlord as soon as you anticipate trouble. Many states and cities also offer emergency housing assistance programs. Acting quickly helps you keep your options open and avoid the stress of sudden moves.

7. Damage to Credit Score

Many financial risks following a sudden job loss, such as missed payments, increased debt, and collections, can lead to a lower credit score. A drop in your credit score affects your ability to rent, buy a car, or qualify for future loans. It can even impact job opportunities in some industries.

Monitoring your credit report and addressing issues early can limit the damage. Free credit reports are available annually from all three major bureaus. If you spot mistakes or fraudulent activity, dispute them right away.

Building Resilience Against Financial Risks After Job Loss

Facing financial risks after a sudden job loss is never easy but knowing what to expect helps you make better choices. Prioritize essential expenses, seek support from community resources, and communicate openly with creditors. Focus on what you can control and take small steps each day to protect your financial future. If you’re preparing for uncertainty, building up your emergency fund and reviewing your insurance coverage can make a big difference.

What steps have you taken to manage financial risks after a sudden job loss? Share your experiences and tips in the comments below!

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8 Things You Should Immediately Do If Your Husband Loses His Job

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Losing a job is never easy, especially when it happens to your husband and your family’s financial stability is suddenly at risk. The uncertainty can feel overwhelming, and it’s natural to worry about how you’ll pay the bills, keep up with expenses, and maintain your lifestyle. But here’s the good news: you’re not powerless. You can take clear, practical steps immediately to protect your family and regain a sense of control. Acting quickly and thoughtfully if your husband loses his job can make all the difference. Let’s walk through eight essential things you should do immediately to weather this storm and come out stronger on the other side.

1. Take a Deep Breath and Assess the Situation

When your husband loses his job, emotions can run high—fear, frustration, and even anger are all normal. Before making any big decisions, take a moment to breathe and assess the situation together. Sit down as a team and talk openly about what happened, what severance or benefits (if any) are available, and your immediate needs. This initial conversation sets the tone for how you’ll handle the coming weeks. Remember, you’re in this together, and a calm, united front will help you both think more clearly and make better choices.

2. Review Your Household Budget

Now is the time to get up close and personal with your finances. Pull up your bank statements, list all sources of income, and tally up your monthly expenses. Identify which costs are essential—like housing, utilities, groceries, and insurance—and which can be trimmed or paused for now. If your husband loses his job, your budget becomes your lifeline. Consider using a budgeting tool or app to help you track spending and spot areas where you can cut back. The goal is to stretch your resources as far as possible while you navigate this transition.

3. Apply for Unemployment Benefits

Don’t wait to file for unemployment benefits. Each state has its own process, but applying quickly ensures you’ll start receiving payments sooner, helping to bridge the gap while your husband searches for new work. According to the U.S. Department of Labor, unemployment insurance can provide crucial temporary income. Ensure you have all necessary documents, such as your husband’s work history and reason for job loss, to avoid delays. If you’re unsure about eligibility, check your state’s unemployment website for details.

4. Communicate with Creditors and Service Providers

If you anticipate trouble making payments on your mortgage, credit cards, or utilities, reach out to your creditors and service providers right away. Many companies offer hardship programs, payment deferrals, or reduced payment plans for families facing job loss. Being proactive can help you avoid late fees, penalties, or damage to your credit score. Explain your situation honestly and ask about available options. You might be surprised at how willing companies are to work with you during tough times.

5. Explore Health Insurance Options

Losing a job often means losing employer-sponsored health insurance. Don’t let your family go without coverage. Look into COBRA continuation coverage, which allows you to keep your current plan for a limited time (though it can be expensive). Alternatively, explore options on the HealthCare.gov Marketplace or see if your children qualify for Medicaid or CHIP. Health insurance is especially important if anyone in your family has ongoing medical needs, so make this a top priority if your husband loses his job.

6. Tap Into Your Emergency Fund (If Needed)

If you’ve built up an emergency fund, now is the time to use it. These savings are meant for exactly this kind of situation. Withdraw only what you need to cover essential expenses, and keep careful spending records. If you don’t have an emergency fund, don’t panic—focus on the other steps in this list to stabilize your finances. Remember, using your emergency fund wisely can help you avoid high-interest debt and keep your family afloat while your husband looks for new work.

7. Update and Polish Your Husband’s Resume

A fresh, updated resume is key to landing a new job quickly. Help your husband review his resume, highlighting recent accomplishments, new skills, and relevant experience. Consider tailoring the resume for specific industries or roles he’s interested in. If it’s been a while since he’s job-hunted, check out free resources from CareerOneStop or local workforce centers. A polished resume, paired with a strong LinkedIn profile, can open doors to new opportunities and help your husband stand out in a competitive job market.

8. Lean on Your Support Network

Don’t underestimate the power of your community. Contact friends, family, and professional contacts to let them know your husband is looking for work. Networking is one of the most effective ways to find job leads and get referrals. At the same time, don’t be afraid to ask for emotional support. Job loss can take a toll on mental health, so check in with each other regularly and consider talking to a counselor if stress becomes overwhelming. Remember, you’re not alone—many families have faced this challenge and become stronger.

Turning a Setback Into a Fresh Start

When your husband loses his job, it’s easy to feel like the world has turned upside down. But with a clear plan and a proactive mindset, you can turn this setback into a fresh start for your family. By taking these eight steps, you’ll protect your finances and build resilience and confidence for whatever comes next. Remember, every challenge is an opportunity to grow, adapt, and support each other in new ways.

What steps have you taken when facing a job loss in your family? Share your experiences or tips in the comments below!

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10 Signs You’re Actually Having A Harder Time Than Most Americans

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In today’s economy, many people experience financial difficulties, job instability, and rising costs of living. However, if you find yourself constantly struggling with basic needs, mounting debt, or deteriorating mental health, you may be facing more significant challenges than most Americans. Recognizing these warning signs can help you take proactive steps toward finding solutions. Here are 10 indicators that suggest you’re having a harder time than the average person.

1. Your Paycheck Is Gone Before the Month Ends

Earning a paycheck should provide financial stability, but if your money disappears before the month is over, you may be struggling more than the average American. Living paycheck to paycheck is common, but when you’re constantly choosing between paying rent, utilities, or groceries, it’s a sign of deeper financial distress.

A 2024 report revealed that nearly 60% of Americans live paycheck to paycheck, yet many still manage to save or cover emergencies. If you have no buffer and every dollar is spent the moment it comes in, it’s time to assess your spending, explore ways to boost income, or seek financial assistance programs that can help you break the cycle.

2. Escalating Debt Levels with No End in Sight

Debt is a common issue, but if your balances keep growing while your payments barely make a dent, you’re in a financially dangerous cycle. In 2024, Americans collectively held over $1.2 trillion in credit card debt, with interest rates at record highs.

If you find yourself using credit cards to cover everyday expenses because your paycheck doesn’t stretch far enough, it’s a sign that your financial struggles are more severe. Without intervention, mounting debt can lead to collection calls, wage garnishments, and long-term financial damage. Seeking debt consolidation options or financial counseling can help you regain control.

3. Inability to Cover Unexpected Expenses

If an unexpected expense would force you to take out a loan, max out your credit card, or borrow from family, you’re financially overextended. Recent reports indicate that nearly 23% of Americans have past-due medical bills because they simply couldn’t afford the costs upfront.

The inability to absorb even small financial shocks is a sign that you’re struggling more than the average American. Finding ways to build even a small emergency fund—by automating savings or cutting small luxuries—can help you feel more secure.

4. Declining Mental Health Due to Financial Stress

When money troubles dominate your thoughts, leading to sleepless nights, anxiety, or depression, it’s more than just a rough patch—it’s a serious concern. A 2024 survey revealed that 43% of U.S. adults reported higher anxiety levels compared to the previous year, with financial worries being a top stressor.

Chronic stress over bills, debt, or job insecurity can impact physical health, relationships, and overall well-being. If financial stress is taking a toll on your mental health, seeking support from a therapist or financial advisor can help you develop coping strategies and solutions.

5. Struggling to Maintain Stable Employment

Job Loss

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Job insecurity or chronic underemployment can be a significant indicator that you’re struggling more than most Americans. While the U.S. economy grew in 2024, many individuals still face layoffs, reduced hours, or jobs that don’t pay a livable wage.

If you’ve been stuck in a cycle of unstable jobs with little career growth, it may be time to explore new opportunities, skill-building programs, or alternative income streams. Long-term unemployment or stagnant wages can make it nearly impossible to get ahead financially.

6. Housing Instability and the Fear of Eviction

Housing costs have skyrocketed, leaving many Americans struggling to keep a roof over their heads. If you’re behind on rent, facing eviction, or living with family because you can’t afford your own place, you’re in a more precarious position than most. The number of unhoused individuals in the U.S. has increased significantly, with rising rental prices being a major factor. Affordable housing programs, rent assistance, or budgeting for a lower-cost living arrangement could help stabilize your situation.

7. Avoiding Medical Care Due to High Costs

Skipping doctor visits, ignoring prescriptions, or delaying medical care because you can’t afford it is a major sign of financial hardship. Despite healthcare reform, millions of Americans remain uninsured or underinsured. In 2024, 12% of adolescents and nearly 5% of adults reported serious mental health concerns but didn’t seek treatment due to costs. If you find yourself neglecting your health because of financial barriers, researching low-cost clinics, government programs, or employer health benefits may help.

8. Social Isolation Due to Financial Struggles

When money problems make you withdraw from friends and family, it’s a sign that financial stress is impacting more than just your bank account. Social isolation can lead to worsening mental health, depression, and anxiety. Studies show that those facing financial difficulties are more likely to feel disconnected and ashamed, making it harder to ask for help. Finding free or low-cost ways to engage with loved ones can help you maintain social connections while working through financial hardships.

9. Relying on Credit Cards for Everyday Essentials

Using credit cards as a lifeline for groceries, utilities, and rent is a sign that your expenses are outpacing your income. In late 2024, credit card debt surged as Americans struggled with inflation and rising living costs. While credit can be a useful tool when managed properly, relying on it to cover necessities often leads to financial disaster. If you’re only making minimum payments while your balance grows, it’s time to explore debt repayment plans or additional income sources.

10. Feeling Hopeless About Your Financial Future

One of the most significant signs that you’re struggling more than most Americans is the overwhelming belief that things will never improve. If you’ve lost motivation, stopped looking for financial solutions, or feel trapped in your circumstances, it’s crucial to seek help. Financial counseling, community assistance programs, and mental health resources can provide guidance and support. Recognizing the problem is the first step toward reclaiming control and making a plan for a more stable future.

Support Can Make A Difference

Seeking support and exploring financial resources can make a significant difference. If you identify with multiple signs on this list, taking proactive steps—whether through budgeting, side gigs, or professional counseling—can help you move toward stability and relief.

Do you feel like you’re constantly struggling in life, while others are doing well? Have you searched for help? We’d love to hear your story in the comments below.

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Is There Any Recourse for an Eviction Due to Job Loss?

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Due to COVID-19, millions of Americans lost their jobs. While moratoriums were put in place to protect them from eviction, time is running out. The protection offered by the CARES Act ended on August 24, leaving many renters vulnerable if their state didn’t extend protection beyond that date. Additionally, the CARES Act requirement didn’t apply to all properties, meaning some renters were experiencing trouble before that help came to an end. As a result, it’s normal to wonder if there is any recourse for an eviction due to job loss. If you’re concerned about being forced out of your home, here’s what you need to know.

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Job Loss: What to do

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Losing your job is like a big punch to the gut. At first, it’s hard to process, but then your head starts spinning. What will I do for work? How will I pay my bills and put food on the table? What will my family do?

Taking a deep breath is a good first step. After that, it’s time to put a plan into action. Many of you could be experiencing this right now, given what the world looks like today.

In this article, I’m going to lay out how to financially prepare before and in the midst of a job loss.

First thing

As I said, this will be a big shock to absorb. Give yourself some time to realize what has happened. More than likely, you’ll go through the 5 stages of grief.

Unemployment

One of the first things you should do is apply for unemployment. There might be some hoops that you have to jump through, but one imperative item you need to confirm with your old employer is that you were let go and without cause. Resigning or being fired for cause disqualifies you from collecting unemployment.

Set money aside for taxes. Unemployment does not withhold FICA taxes or state income tax (if applicable). If you normally receive a refund, you might get a reduced refund or none at all. Plan accordingly.

Severance

The next step has to do with severance. If you were let go or fired without cause, your company will, most likely, offer it to you. It isn’t required by law, but most companies do it. Take severance home and review it closely. Don’t sign right away. Once you’ve reviewed it, take it back and negotiate.

Job Search

Starting looking for a new job right away. It does not pay to wait. All jobs are first come first served, set get searching as soon as possible.

Be picky, but pick up a job of some sort that will provide you with some cash flow.

Is now the time for a career change? Have you been dissatisfied with your industry or line of work? Do you have the skills and/or qualifications to make such a change? These could be questions to consider.

Finances

With regard to any debts that you have outstanding, call your creditors and see if they will let you defer payments, or at least make reduced payments, for a while. Also, make the minimum on your debt payments. Having cash available for other necessary items is more important.

Relentlessly cut expenses and review your budget with fine-toothed comb. Again, cash flow is your friend in your new situation so the more liquidity you have the better.

Pad your emergency fund. Obviously, this is something that needs to be done before you lose your job, so it’s imperative that you listen. Common advice is to save 3-6 months’ worth of expenses. If you’re self-employed and are responsible for payroll and other business expenses, it’s prudent to have 6-12 months worth saved.

HELOC? That stands for Home Equity Line of Credit. Is that something you are able to do? Is that something that you want to do? A HELOC turns the equity you’ve accumulated on your home into a loan.

Insurance

Life and disability insurance are very important coverages to have, but a just loss and loss of income could derail those coverages. There is a rider that can be added (waiver of premium) at the time of application so your policy stays in force while you are unable to make payments. *Be advised: this has to be done when you sign up, not after the fact.*

Healthcare is another important item to take care of. First off, if you have any appointments you were waiting to schedule, do it now before your coverage changes. The next step is to find a suitable replacement for your current coverage. This could be taking your spouse’s insurance, finding new coverage on the marketplace, or signing up for COBRA.

Retirement

Avoid dipping into retirement savings – this should be your last resort. Retirement savings accrues most effectively when you leave it alone. That’s when compounding works the best. Not only that, withdrawing funds prematurely will subject you to income taxes and an early withdrawal penalty.

Do you have 401(k) loans? If the answer is yes, you’ll be required to pay that loan back in its entirety in the next 60 days, otherwise, it’ll be considered a withdrawal. Again, taxes and a penalty.

Make a decision on what to do with the old retirement plan – Do you roll it to your new employer, roll it to an IRA, or leave it with the current institution. If you have a lower account balance, your HR department could require you to transfer it or cash out. Each company is different.

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