One consequence of the coronavirus pandemic has been soaring unemployment rates. While the workforce is slowly getting back to its feet, knowing how to handle unexpected unemployment can be useful should you suffer a job loss in the future. With so many Americans living paycheck to paycheck, anticipating the worst situation can help you be prepared.
Build Your Emergency Fund
One of the most effective ways to mitigate the impact of unexpected unemployment is to ensure your emergency fund is sufficient. If you do not have an emergency fund, now is the time to start contributing to one. Having 3-6 months of future expenses in a reserve account will help you be better prepared for any potential hardship.
Consult a Financial Advisor
Whether you wish to plan ahead or you have recently received bad news about your employment status, consulting a financial advisor could be a good course of action. With a professional, you can more accurately identify your budgetary needs and restrictions and how to allocate your saving and investment dollars. If you have a retirement plan through your employer, the advisor can assist with a plan for a rollover to another qualified account.
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