5 Money Moves to Make ASAP If You Lose Your Job

Whether that pink slip comes as a total surprise or departmental layoffs have been looming for months, losing your job sucks—emotionally, professionally, and financially. It’s also incredibly common: Roughly one-third of American worker have “layoff anxiety,” according to one 2025 poll.

“Going through these rough job transitions is totally normal, and most Millennials will go through it more than once in their careers,” Sophia Bera, a certified financial planner and founder of Gen Y Planning, told Mental Floss in 2016.

Of course, going from making bank to making bupkis is enough to make anyone freak out—no matter how many times you’ve done it. But losing your job doesn’t have to spell financial ruin (or a diet of ramen noodles). The trick is to be proactive about slashing spending and stretching savings—as soon as you get the bad news. Here are the money moves to jump on:

1. File for unemployment.
2. Shelve your student loans.
3. Call your other creditors.
4. Figure out your health insurance options.
5. Tighten your (budget) belt.

File for unemployment.

Let’s be real: Unemployment benefits aren’t going to cover all of your expenses. But now is the time to claim every penny of help you’re entitled to. The benefit formulas vary by state, but most are based on a percentage of your former salary, with a maximum weekly benefit. Every state has its own website detailing how to apply for benefits, as well as who to contact with questions. Get clicking.

Shelve your student loans.

While you’re unemployed, you can put any federal student loans into deferment—that means you’ll be able to halt payments entirely until you find a new gig and the government will pick up the tab on any interest that accrues. Private student loans probably won’t be quite so generous, but you might be able to switch repayment plays so you’re paying less each month or move the loans into forbearance until you find work.

“People sometimes wait until they can’t make the monthly payment to call their student loan providers, but the last thing you want to do is default on your loans,” Bera said. That money blunder can wreck your credit and cost you even more in hefty fees and penalties.

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Call your other creditors.

If you have a car payment or a credit card bill, jump on the phone and explain your situation. “All loan providers want to get paid, so they’re motivated to work with you to figure out a payment plan,” Bera said. “The first person you talk to might not have the authority to change the bill’s cycle length or lower your minimum payment, but if that’s the case, ask to speak with a manager.”

Figure out your health insurance options.

COBRA is a short-term solution that lets you continue with your company’s chosen healthcare plan, typically at a higher monthly premium. But ponying up for COBRA isn’t always the best money move. If you’re younger than 26, you might be able to sign on to your parent’s insurance instead. (And if they’re already carrying your younger siblings, the add might not even cost them a premium increase.)

If you think this layoff might signal a good time to start a freelance business, you might want to comparison shop for coverage on your state’s Health Insurance Exchange. And even if you do find that COBRA is your best bet, there’s no rush. “You have 60 days from the day you lose your job to elect for COBRA,”Bera said. “And you can back-date coverage if something does happen, so for most people hoping to find a job right away, it makes more sense to wait.”

Tighten your (budget) belt.

Scrutinize your budget and cut out anything that’s not totally essential. That might mean swapping your pricey gym membership for free runs in the park or cutting the cable cord in favor of a Netflix subscription you split with your roommate. “Taking a serious look at your spending might also prompt you to make some tough choices, like not going to your friend’s wedding this summer,” Bera said. “Your friend might be mad at you at first, but tough. This is life, and s**t happens. It’s not worth putting a destination wedding on your credit card—especially if you don’t have a job.”

One unexpected perk of paring down your spending, she said, is that you might find you don’t miss the daily splurges nearly as much as you thought you would. That means when you do land your next job (and you will!), you can stick with the pared down budget and bank more of your new salary for savings.

A version of this story originally ran in 2016; it has been updated for 2025.