• Latest

How to manage money when you’re between jobs

March 29, 2013
East Montpelier Student Lands Opportunity at Tech Company

East Montpelier Student Lands Opportunity at Tech Company

June 28, 2022

U.S. Supreme Court Reversal of Roe vs. Wade is a Devastating Blow to Reproductive Rights

June 28, 2022
Just Some Thoughts

I Hate Painting!

June 28, 2022
African Queen (1951)

The Conversation (1974)

June 28, 2022

Central Vermont Council on Aging (CVCOA) Offers Special Memorable Times Online and Ageless Grace/Memory Café Reunion in July 

June 28, 2022

Upper Valley Everyone Eats Returns to Gifford in June

June 21, 2022

Vermont’s COVID-19 State-Run Testing Sites to Close June 25

June 21, 2022
Lenny’s Raises $1,250 in May in support of American Stroke Awareness Month

Lenny’s Raises $1,250 in May in support of American Stroke Awareness Month

June 21, 2022
African Queen (1951)

Pistol

June 21, 2022
“Mr. B” Retiring After 30 Years at Nelson Hardware If He Can’t Fix It, It Can’t Be Fixed

“Mr. B” Retiring After 30 Years at Nelson Hardware If He Can’t Fix It, It Can’t Be Fixed

June 21, 2022

Secretary of State Candidates Forum

June 14, 2022

Planned Parenthood of Northern New England Announces Sustainability Plan to Meet the Challenges of the Moment

June 14, 2022
  • Home
  • Disclaimer
  • Privacy
  • Sitemap
Friday, July 1, 2022
The World Online
Advertisement
  • Home
  • News & Features
    • Local News
    • Letters & opinions
    • George Shuman
    • Max’s View
    • Local Sports & Outdoors
    • Births
    • Weddings & Engagements
  • Calendar
    • Art Exhibits
    • Calendar of Events
    • Ongoing Events
  • Obituaries
  • Submit
    • Submit Calendar Listing for Non-Profit Events
    • Submit An Article To The World
    • Submit Letter To The Editor
    • Submit Sports News/Photo
    • Submit Birth Announcement
    • Submit Engagement Announcement
    • Submit Wedding Announcement
  • Advertising
    • World Rates and Ad Sizes
    • World Distribution Map
    • World Deadlines
    • Audit and Reader Surveys
    • Advertising Inquiry
  • Classifieds
    • Place Classified Ads
    • View Current Classifieds
  • About Us
  • Contact Us
No Result
View All Result
  • Home
  • News & Features
    • Local News
    • Letters & opinions
    • George Shuman
    • Max’s View
    • Local Sports & Outdoors
    • Births
    • Weddings & Engagements
  • Calendar
    • Art Exhibits
    • Calendar of Events
    • Ongoing Events
  • Obituaries
  • Submit
    • Submit Calendar Listing for Non-Profit Events
    • Submit An Article To The World
    • Submit Letter To The Editor
    • Submit Sports News/Photo
    • Submit Birth Announcement
    • Submit Engagement Announcement
    • Submit Wedding Announcement
  • Advertising
    • World Rates and Ad Sizes
    • World Distribution Map
    • World Deadlines
    • Audit and Reader Surveys
    • Advertising Inquiry
  • Classifieds
    • Place Classified Ads
    • View Current Classifieds
  • About Us
  • Contact Us
No Result
View All Result
The World Online
No Result
View All Result

How to manage money when you’re between jobs

by
March 29, 2013
in Careers
0

Though the U.S. economy has been gradually improving, job changes – both involuntary and voluntary – remain a fact of American working life.

“It’s also a fact that bills need to be paid whether you’re employed or not,” says J.J. Montanaro, a certified financial planner with USAA.

To help you cover expenses and protect your finances as you transition from one job to the next, Montanaro offers these tips.

1. Decide how to collect your final pay

If leaving your job wasn’t your idea, your employer may provide a severance package to ease the financial pain. Amounts vary, but one or two weeks of salary for each year you’ve worked at the company is typical. If you’re given a choice of a lump sum or a stream of payments, consider these factors:

* Benefits. If employee benefits (health care, life insurance, long-term care) continue as long as you’re receiving payments, you may want to take the option that prolongs them.

* Your financial discipline. Afraid you might squander a lump sum? If your severance payment provides enough cash to justify dividing it up, choosing periodic payments will help keep you in paycheck mode.

2. File for unemployment benefits

If your employer let you go – provided you weren’t fired for misconduct – you’ll probably qualify for unemployment benefits. If you quit, usually you can collect benefits only if you left for “good cause,” which generally means there was a problem at work or personal situation so difficult that you had no alternative.

If you think you’re eligible, don’t procrastinate. It may take two to three weeks to process your claim, so contact your state’s unemployment office pronto. While each state’s program varies, you can generally count on benefits to last 26 weeks, with federally funded emergency unemployment benefits extending up to 73 weeks in some states. Benefits are based on your income and how long you were employed.

If you separated from the military under honorable conditions, you may also be able to claim unemployment benefits through your state of residency. Check with your state department of labor to get the lowdown.

3. Reduce your spending

If your decision to leave was involuntary and your next employment is an unknown, it’s important to preserve your cash while you’re out of work; this can require a top-to-bottom examination of where your money goes. “This exercise can help keep you afloat today and be an engine for paying off debt and saving once the paychecks start again,” Montanaro says. Put off big-ticket purchases and reduce discretionary expenses as much as possible.

4. Strengthen your emergency fund

Use your severance pay, unemployment benefits and any money you can save to build a cash stockpile. Keep enough money in a savings account to pay at least three to six months’ expenses. For a higher interest rate on the rest of your cash, build a short CD ladder or open a variable rate CD. Be careful not to lock away money that you’ll need. If you served in the military and made tax-free contributions to the Thrift Savings Plan, you may be able to tap that money without the taxes and penalties associated with most retirement money.

5. Avoid cleaning your financial slate

While you may be tempted to use your severance or other assets to pay off your car, credit cards or other debt, you may be better off making only the required or minimal payments. This strategy can stretch your cash and help you meet living expenses in case a new job isn’t right around the corner.

6. Review your health insurance options

At most companies, federal law allows you to keep your employer-provided health insurance for up to 18 months. Prepare for sticker shock: You will be responsible for the entire premium – what you paid, plus any amount your employer paid.

7. Protect your retirement

If you have a 401(k) or other employer retirement plan, avoid the temptation to cash it out when you leave. In addition to jeopardizing your security when you retire, you could pay a steep price in the form of income taxes and penalties. Instead, roll the money over to an IRA or leave it in the employer plan.

Tags: betweenjobsmanagemoneyyou're
Previous Post

Small businesses accelerating growth in 2013 with cloud computing

Next Post

Giving back is the best way to start the new year

Next Post
Giving back is the best way to start the new year

Giving back is the best way to start the new year

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This Week’s Ads

  • Home
  • About Us
  • Disclaimer
  • Privacy
  • Sitemap
The World
403 US Route 302
Barre, VT 05641
Phone: (802) 479-2582

Copyright © 2019 The World Online. All Rights Reserved. Powered by CoolerAds.

No Result
View All Result
  • Art Exhibits
  • Audit and Reader Surveys
  • Births
  • Calendar
  • Contact Us
  • Daily Horoscope
  • Food & Recipe
  • Home
  • Obituaries
  • Ongoing Events
  • Pay Your Bill Here
  • Senior Living Edition
  • Showtimes
  • Submit Birth Announcement
  • Submit Calendar Listing for Non-Profit Events
  • Submit Engagement Announcement
  • Submit Listing to our Local Directory
  • Submit Sports News/Photo
  • Submit Wedding Announcement
  • Summer Guide
  • Testimonials
  • The World Coupons
  • Weather Forecast
  • World Deadlines
  • World Distribution Map
  • World Rate Card
  • World Rates and Ad Sizes
  • Disclaimer
  • Privacy
  • Sitemap
  • About Us
  • Vermont Lottery
  • Advertising Information
  • The World Staff
  • Advertising Inquiry
  • Submit Letter To The Editor
  • Local Directory
  • Poll Results
  • Local Deals
  • Classifieds
  • Submit An Article To The World
  • Events
  • The World – This Week’s Online Digital Edition
  • The World Auto & Sports

Copyright © 2019 The World Online. All Rights Reserved. Powered by CoolerAds.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In