Here Are 5 Money Moves To Make Right Away If You Were Just Laid Off, According to a Financial Expert

By Emily Clements Parade - Trending Stories

Updated June 12, 2026 3:25 PM

Financial experts agree that getting laid off can trigger a wave of financial anxiety. And according to Vincent Birardi, CFP®, AIF®, MBA, MSIS, Senior Wealth Advisor at Halbert Hargrove, the most important thing you can do to manage that stress is to avoid making rushed decisions.

"Losing your job can be a psychological jolt," Birardi tells Parade. "It's imperative that you don't succumb to any overwhelmingly and hopefully short-term negative emotions." Instead, he recommends focusing on these five financial steps.

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1. Review Your Budget and Cut Non-Essential Spending

Your first move should be understanding exactly where your money is going. Birardi suggests postponing major purchases, luxury items, and expensive vacations while you search for your next opportunity. "Reaffirm your monthly household spending budget," he says. "Identify essential spending-housing, food, etc.-from non-essential spending." The goal is to align your spending with your available cash flow and preserve savings for essential needs.

2. File for Unemployment and Claim Any Benefits You're Owed

It's easy to freeze in this moment, but don't wait too long to act. "Ideally within a few days after having been laid off," Birardi says when asked how quickly workers should apply for unemployment benefits. "The process can often take weeks to complete, but acting faster increases the probability of receiving financial assistance sooner."

He also recommends reviewing your severance package and claiming any available workplace benefits, including unused PTO, healthcare coverage, tuition reimbursement, or childcare benefits, thoroughly before making any major decisions.

3. Don't Assume You'll Run Out of Money Tomorrow

"One thing people can instinctively feel is that they will run out of money very quickly," Birardi says. "In many cases that's not true."

Rather than panic, he recommends simplifying your spending and focusing on securing your next role. A combination of severance, unemployment benefits, and emergency savings can provide you with a steady runway before you land your next job.

4. Use Your Emergency Fund Before Turning to Credit Cards

Let your emergency fund do what it was meant to do. "As best you can, avoid the urge to accumulate credit card debt to otherwise sustain elevated levels of spending," he says. "Unpaid credit card debt can severely compromise your progress towards future goals such as education and retirement planning."

5. Leave Your 401(k) Alone If Possible

For many workers, tapping retirement savings during a period of temporary unemployment can be tempting-but Birardi says you should keep your hands off of the asset. "Avoid withdrawing your 401(k) funds if you can," he says. "Your 401(k) is meant to sustain you in retirement."

Consider leaving the account where it is or rolling it into an IRA or a future employer's retirement plan, where it can continue to grow.

Long Term Focus

Above all, Birardi encourages laid-off workers to stay focused on the long term. "Stay calm and confident-regarding your financial and your overall future," he says. "Don't make any rushed decisions. Give yourself the time and space to consider all financial decisions with poise and clarity. And most importantly, ask others for help."

Disclaimer: This article is for informational purposes only and does not constitute financial advice.

This story was originally published June 12, 2026 at 2:01 PM.