If you are newly unemployed, take heart. You are not alone! Skyrocketing inflation in the United States impacts small businesses. Many were unable to weather increased expenses. So, they cut employees. Meanwhile, larger companies have laid off employees to reduce costs. If you recently face unemployment, transform a crisis into an opportunity to protect yourself and your family.
Facing Unemployment? Take a Hard Look at Your Financial Situation
Try not to dwell on the loss. Rather, focus on planning for the future. In planning proactively to address both the immediate crisis and your long-term financial wellbeing, assess the state of your finances. Do everything possible to maximize resources and minimize expenses.
Unemployment Implications
Seek out resources if you lost your job through no fault of your own. Some employers offer severance packages. And in many cases, you could collect unemployment benefits. Depending on state law and your former employer’s policy, a payout of accrued vacation and sick leave may fund source of liquidity to sustain you for a while.
During Unemployment: Create a List of Debts and Expenses
This will provide you with a fuller picture of your financial situation. If you have expenses that can be temporarily eliminated: subscriptions for streaming services, cable television, yard or house cleaning services, and other luxuries. Put these on pause sooner rather than later. You can easily reestablish those services if you find another job quickly, but if you continue to spend money on such items, you will have less money available in the future if your job search lasts longer than you anticipate. You can figure out creative ways to live on less (and you may decide you want to continue doing so even after you land a new job!). If you do not already have a monthly budget, create one that will help you minimize your expenses.
Work with Creditors During Unemployment
Creditors will prefer getting a partial payment rather than no payment, and most will be open to working with you as you look for a new job. However, this may have a negative impact on your credit rating, and you may have to try in the future to increase your score.
Update Your Estate Plan to Reflect Unemployment Status
Although you may think about updating your estate plan when your life circumstances change in a positive way—for example, getting a higher-paying job or having a child—you should also update your estate plan when you experience negative changes, such as losing a job. If your life insurance policy was provided by your employer, it will generally terminate when you leave your job.
Create an Estate Plan
If you do not already have an estate plan, gather your lists of accounts and property, and meet with an estate planning attorney to create a basic estate plan to protect yourself, your family, and your property. Your attorney will ask you to provide your financial information to prepare for the estate planning consultation. An estate plan can protect your accounts and property by minimizing expenses and taxes—leaving more for your family—while also making sure your wishes are followed.
About Skvarna Law Firm in Glendora and Upland, California
Let a skilled attorney assist with your estate plan. So, contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. Therefore, we provide legal services for individuals living in San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
