Money Monday | Smart Money Tips After a Layoff
- Avoid panic, gather information, and understand your financial situation before making major decisions.
- Maximize benefits like health insurance, unused leave, and severance packages through careful review.
- Leverage networking, career services, and retirement savings wisely to position yourself for new opportunities.
Losing a job can be overwhelming, but financial expert Jini Thornton says staying calm and making informed decisions can help people get through the transition.
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During a recent appearance on Get Up Mornings with Erica Campbell, Thornton shared practical financial advice for workers facing layoffs as employers across the country continue announcing job cuts.
She said one of the biggest mistakes people make after losing a job is allowing panic to take over. Instead of immediately reacting, Thornton encouraged listeners to slow down, gather information, and understand exactly where they stand financially before making major decisions.
One of the first things she recommends is finding out how long health insurance benefits will continue after employment ends. If coverage is set to expire soon, she suggested scheduling any necessary medical appointments while insurance is still active.
Thornton also advised employees to ask whether they will receive payment for unused vacation or sick days and to apply for unemployment benefits as quickly as possible. She warned against rushing to pay bills without first creating a clear picture of available income and monthly expenses.
The conversation also turned to severance packages, which some employers offer when eliminating positions. Thornton explained that while severance isn’t required by law, many companies provide it to support employees and maintain a positive reputation.
She encouraged workers not to sign severance agreements immediately. Instead, they should review the details carefully, understand the deadline for accepting the offer, and determine whether there’s room to negotiate. Depending on an employee’s years of service and work history, companies may be willing to improve the package.
For those beginning a job search, Thornton stressed that networking remains one of the most valuable tools. She encouraged listeners to take advantage of any career counseling or job placement services offered by their former employer. Before leaving, she also suggested collecting copies of performance reviews and requesting letters of recommendation that could strengthen future job applications.
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“You can’t just sit behind your computer filling out applications,” Thornton said, emphasizing the importance of reaching out to professional contacts and building relationships during the job search.
Thornton also addressed workers nearing retirement. While people age 59½ and older can withdraw money from a 401(k) or 403(b) without paying an early withdrawal penalty, she cautioned against using retirement savings unless absolutely necessary.
She reminded listeners that retirement funds are meant for the future and should be protected whenever possible, even during periods of unemployment.
Thornton’s message was simple: preparation, patience, and thoughtful planning can help people navigate one of life’s most difficult financial challenges while positioning themselves for new opportunities ahead.
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