Ahhhh I'm so, so sorry about the job loss! It will always be a gut punch no matter which way you slice it, and I know it doesn't sting any less if it's a mass layoff or not. Give yourself a few days to grieve and sit in it (perfect time for a long weekend)
The good news is you are NOT as behind as you feel right now. You're a homeowner! You have savings! You didn't mention any credit card debt either…? You're genuinely in a better place than most who get laid off unexpectedly and we just need a plan (that's why I'm here). Now let's get into your homework.
File for unemployment now (if you haven't already). These benefits exist EXACTLY for this situation and there should be ZERO shame in using them right now. In a lot of states you can file online quickly, and this is the buffer and float you need to get you through this chapter. Plus it will take soooo much pressure off you and your savings.
Ok now your 2 month runway. It's not a bad starting point but we need to stretch this out for as long as humanly possible. The way to do that is to go through every single expense you have right now and sort them into two categories - your non negotiables and negotiables.
The only goal here is to reduce your monthly burn rate as much as possible so your savings lasts longer than two months. Every dollar you don't spend right now is a dollar that buys you more time and more options later.
Now let's talk your student loans. The good news is these tend to be negotiable and most people don't know this. If your student loans are federal, call your servicer today and ask about income driven repayment - explain that you had a sudden job loss and need some flexibility.
If they're private loans, you should still call your lender anyway. A lot of private lenders have hardship programs that they never advertise. Use my money scripts to have these convos - they are very useful for exactly this.
Mortgage time. Same principle and this is important. If you get to a point where you're really struggling to make the payment on any given month, call your mortgage servicer BEFORE you miss the payment - not after. Most lenders have forbearance options for exactly this situation and your credit stays protected but you have to be really proactive with them, and keep open communication on when you can make payments.
Last thing on not getting more into debt during this period. The BEST way to avoid new debt is to reduce your expenses right now. You have to treat your savings as if they are your only lifeline right now, and stretch as much as possible, so you don't have to dip into debt to keep everything afloat.
But of course, if something essential comes up and you need to put it on a card, that's totally fine - that's life! Just make sure you're intentional about it and have a plan to pay it off when you land your next dream gig.
That's all your homework!
Give yourself the weekend, go have a margarita and chill, and then on Tuesday, it's time to hit the ground running.
You're going to get through this xx
Ahhhh I'm so, so sorry about the job loss! It will always be a gut punch no matter which way you slice it, and I know it doesn't sting any less if it's a mass layoff or not. Give yourself a few days to grieve and sit in it (perfect time for a long weekend)
The good news is you are NOT as behind as you feel right now. You're a homeowner! You have savings! You didn't mention any credit card debt either…? You're genuinely in a better place than most who get laid off unexpectedly and we just need a plan (that's why I'm here). Now let's get into your homework.
File for unemployment now (if you haven't already). These benefits exist EXACTLY for this situation and there should be ZERO shame in using them right now. In a lot of states you can file online quickly, and this is the buffer and float you need to get you through this chapter. Plus it will take soooo much pressure off you and your savings.
Ok now your 2 month runway. It's not a bad starting point but we need to stretch this out for as long as humanly possible. The way to do that is to go through every single expense you have right now and sort them into two categories - your non negotiables and negotiables.
The only goal here is to reduce your monthly burn rate as much as possible so your savings lasts longer than two months. Every dollar you don't spend right now is a dollar that buys you more time and more options later.
Now let's talk your student loans. The good news is these tend to be negotiable and most people don't know this. If your student loans are federal, call your servicer today and ask about income driven repayment - explain that you had a sudden job loss and need some flexibility.
If they're private loans, you should still call your lender anyway. A lot of private lenders have hardship programs that they never advertise. Use my money scripts to have these convos - they are very useful for exactly this.
Mortgage time. Same principle and this is important. If you get to a point where you're really struggling to make the payment on any given month, call your mortgage servicer BEFORE you miss the payment - not after. Most lenders have forbearance options for exactly this situation and your credit stays protected but you have to be really proactive with them, and keep open communication on when you can make payments.
Last thing on not getting more into debt during this period. The BEST way to avoid new debt is to reduce your expenses right now. You have to treat your savings as if they are your only lifeline right now, and stretch as much as possible, so you don't have to dip into debt to keep everything afloat.
But of course, if something essential comes up and you need to put it on a card, that's totally fine - that's life! Just make sure you're intentional about it and have a plan to pay it off when you land your next dream gig.
That's all your homework!
Give yourself the weekend, go have a margarita and chill, and then on Tuesday, it's time to hit the ground running.
You're going to get through this xx