I Lost My Job… | TOP 5 Things You NEED to Do After Being Laid Off

Yup. That thumbnail wasn’t clickbait. I’m sad to say, that after over five years
at my primary job, I was laid off. It’s just a tough situation you know? I mean…now I’m not sure how I’m gonna
make the mortgage payment this month. And my car payment is going to fall behind. Not really sure how I’m going to be able
to keep the lights on – Oh wait, I’m debt free with an emergency
fund. I’ll be fine. But if you want to be fine too, I’m going
to tell you the top 5 things you need to do after being laid off. Stay tuned. I gotta pick this up now. What is up, my fellow Money Minions! My name is Troy, also known as – the Dollar
Dude. What’s happening with you? Welcome back to another video, and as all
the money minions out there know, we talk personal finance and building a life full
of financial freedom here and we keep it as simple as and real-world as possible. If you’re down with that and you’re not
yet a minion, hit that subscribe button and that little bell icon next to it so you don’t
miss a moment of my self-deprecating humor. That wasn’t funny. Was that funny? That wasn’t funny. So yeah, I got laid off! Fun times. The funnest. Can’t you see the smile on my face? Have you ever seen someone get canned and
have to do the walk of shame with a cardboard box? Or maybe it happened to you? Were you stoic, or frantic? Did you peel out of the parking lot screaming
at the top of your lungs every curse word in the book? Let me know down in the comments what happened
and how you handled it! So yeah, right before the ban hammer hit,
of course the CEO at my former company has to do his best to try and soften the blow. Sort of like this … [re-enactment of the layoffs redacted because
I’m still expecting one last check from them – plus they already think I wrote a nasty
review about them online which I didn’t] Hahaha! Oh man, that is top shelf comedy right there. Man Troy, you crazy. But seriously, it’s a hard thing to go through. If this has also happened to you before in
your life then you know the next few weeks are absolutely crucial. Boom, you’ve lost your primary source of income,
overnight. The plan you’d been sticking to, expecting
that money to come in? That plan’s not going to work anymore. So here are, in my opinion the TOP 5 Things
You NEED to Do After Being Laid Off. Number one. Don’t panic. Take a deep breath, relax. Collect yourself for a few days. Don’t make any rash decisions. Don’t move to Cancun and open up that vintage
pottery shop you’ve always wanted. Don’t drop everything to take a 6 month sabbatical
and see the wonders of the world. Now’s not the time for that. Seriously. For the next two to three days, just don’t
do anything. Your emotions are high. You’re probably talking under your breath
thinking about how your revenge will be swift and just and cold as the blackest winter’s
night. People don’t make rational, mathematics-based
decisions when that type of emotion is involved. Take a walk around a park. Catch up on your favorite shows. Spend some time with the fam. You’ve got some free time, right? Might as well use it. Alright, got that out of your system? Feel
better? Good. Now it’s time to form a plan. Number two. Consider filing for unemployment. I know, I know. Some people out there are like – “Unemployment, isn’t that just an entitlement
program? Ha! Please. I have 2 doctorates and 7 masters degrees,
and 4 of them are MBAs. This is just a minor setback. I certainly don’t need the assistance of
some entitlement program like unemployment benefits. Hahaha…” Yeah. Look. Unemployment is a fund your employer has paid
a percentage into for years. This is literally what this is for. If you don’t at least consider using it, you’re
willfully turning your back on money meant to help you for exactly this very purpose. Plus, your first unemployment payment can
take a long time to get to you. Several weeks in fact. In the meantime, your car still requires gas
and your body still requires food. I know, shocking. What if that job opportunity Uncle Cletus
got lined up for you doesn’t work out? That’s probably another 2 weeks before you
can line up another interview, and it’s also another two weeks without your primary
source of income. I can see you starting to reach for that credit
card. Don’t – don’t – no. Step away from the plastic. So if you’re on the fence about filing,
fall off the fence and file. It’s going to take a while anyway, might
as well get started. If you’re getting a severance, good for
you. You’ve still got the right to file unless
you signed something when you got hired stating that you wouldn’t. This is why you gotta read the fine print. No one ever really thinks about what happens
if you get laid off while you’re getting hired. The unemployment office will factor your severance
pay into your unemployment benefits so don’t feel like you’re cheating or playing both
sides if you got a severance. Number three. Rollover your 401(k) to an IRA. So if you’ve been at your job for a while
and you’ve elected to auto-contribute pre-tax dollars to a 401(k), chances are you’ve got
a nice chunk of change in there. But you lose your job. So what are you going to do, leave that cash
behind? No one gets left behind. Eh, I’m not going to touch that money for
years anyway. What’s so bad about just leaving it with my
former employer. Four simple words. You don’t work there. Remember that cardboard box they gave you
to pack your stuff in? Yeah. That means you’ve probably gotta deal with
HR to get access to change stuff, you’re not pulling in a paycheck to make easy contributions
anymore and the fees are astronomical compared to a regular brokerage. It’s all the disadvantages of a 401(k) with
almost none of the benefits. Get that money out of there. What you’re going to want to do as soon as
you can is called a Direct IRA Rollover. Meaning that cash gets moved out of your 401(k)
to a Traditional IRA. Directly from financial institution to financial
institution. That money never touches your hands. This is a good thing, because you touching
that money is one of the dumbest money moves you could possibly make. Why? Because if it’s paid directly to you, the
IRS has to hold 20% of it for federal taxes. You’re required by law to deposit the full
amount into your new IRA within 60 days in order to avoid a tax penalty. Including the 20 percent you don’t have! Wut? Yeah. You would have to make up that missing 20%
using money from somewhere else. See why this is just beyond dumb? Be smart. A direct rollover is the way to go. That money is lava. Don’t touch it. Now, It’s possible that your old 401(k) provider
will charge you a fee to do their part of the rollover. Not fun, I know. Hey, it happened to me. The fee with my old 401k provider was $125
which I had to pay. If you think about it, being laid off cost
me $125 dollars. Which is really messed up. But it’s worth it to make sure you’ve got
a clean break from your former employer and to open up your cash to the entire market
instead of being limited to whatever your provider thought you were worthy of investing
in. Number four. Reevaluate your budget. Oh, this one’s painful. What a lot of people do when they lose their
job is they make no changes to their budget because they just know they’ll get a job
fairly soon. Why should they have to change? After all, this is the lifestyle to which
they are accustomed. Yeah. No. Get your monthly budget out. See that nice big number at the the top, probably
in green? Yeah, that one. Put a big fat zero right there. This is real life, it’s time to get real
serious. You just lost your primary source of income
and you have got to deal with that. If your budget is an excel spreadsheet, hopefully
you’ve got your formulas set up right and all those negative numbers you see now in
bold red will scare you into making some much needed budgetary changes. What do you gotta do? Make the numbers work with the income you
have. If you have no additional income from a working
spouse or a side gig, you’ve gotta put your emergency fund into play. Cause you got one, right? This is what we train for, Money Minions! Cut your budget down to the absolute essentials. No contributions to that vacation sinking
fund. No new clothes (unless you need them for interviews),
no eating out, nothing. You’re in scorched earth mode until you
get your income back up. Work that budget until those negative numbers
in red disappear. That’s called having a plan, and a plan
is your best friend. He’s your running dog in troubled times. Good old Mr. Plan. He’s got your back. Number five, and probably the most overlooked. Go see your doctor. Forgot about that one, huh? I don’t blame you. Your health care is probably the last thing
you wanna think about right now, but it’s super important. You’ll probably still have insurance coverage
until the end of the month, so get any doctor visits, dental checkups and eye exams in while
you still have insurance. You can also choose to extend your coverage
through the federal program COBRA. I’ll leave a link down in the description
in case you want to learn more about that. Stay healthy, because the last thing you need
is a medical emergency while your income is on break. Money Minions don’t go out like that. And this one is done – hit the like button
if you liked it, or if you’re not yet a Minion, subscribe to the channel if you feel
so inclined, we’d love to have you. So until next time, my fellow Money Minions,
my name is Troy. And I will see you guys…
…next Dollar!

100 thoughts on “I Lost My Job… | TOP 5 Things You NEED to Do After Being Laid Off

  • Oh Troy, you had me for a sec…then I remembered "wait" a minute this dude is debt FREE with money 💰in the 🏛 bank. Love your sense of humor. 😄

    Great tips sir! And so glad to hear & know you will be A ok!

  • Your a perfect example of why debt is dumb and having an emergency fund is so crucial. You never know when you could lose your job. Even the most stable jobs can let you go. It's something when you said that you got laid off, I knew right away that you were in a pretty good place with your finances. You were very prepared financially for this storm. I love the humor with all your videos. Keep them coming. They are so fun to watch and very informative.

  • Glad to see you making videos again. Sorry to see you lost your job, but glad you already got a new one! Good for you!!

  • Troy!!!! Missed your videos so much! Sorry to hear about the job but you know that Dave says sometimes it is a blessing in disguise ;). I saw you already have a new job so that’s good! I hope you didn’t have to use too much of your EF!! I just did my rollover from my previous job to my Roth—great info here!

  • If the timing's right (enough) and you're building a bridge out of your day job, a lay-off can be a godsend- it's a six month buffer while you're ramping-up your side hustle into your main hustle?

  • Never a fun event but having an emergency fund gives you a lot of breathing room (and not needing to touch that plastic). Glad to see you back Troy!

  • I’m sorry that happened. Also these are GREAT tips. (Also they can’t hold your check for leaving a bad review. Not that you have that.)

  • WELCOME BACK! 🙂 and… i've been laid off once and I QUIT once – both times I walked out with a box and my head held high! The time I was laid off, I took two weeks off to really do some inner soul searching and come to terms with the no job issue, then hit the ground running with a spruced up resume and a better attitude. I found a job about four weeks into the search. The time I quit, it was because my workplace had become super hostile – my boss had physically pushed me up against a wall and yelled at me and I had to leave. It was late October and we were able to budget no income from me until spring so that I could work on my mental health during that time. I now have an AMAZING job that I love to pieces.

  • Sorry you had to face this but glad to hear you have found something else. This video (and your humour) will help lots of people who find themselves in the same situation

  • Beyond insurance, use your FSA the day you're laid off! It disappears the next day. Fill your prescriptions, buy glasses, ask doctors or dentists if you can prepay your visits. Don't let that money disappear!

  • Hahaha "Oh wait… I'm debt free!"
    But seriously, I'm sorry that happened!! So glad you've accepted another position already, but what a stressful time. That emergency fund definitely was crucial.
    Thanks for sharing your tips on this subject

  • Praying for the next opportunity for you! I was laid off from my last job and have been doing side hustles, such as babysitting and delivery gigs. I'm graduating in May so looking for an opportunity that will really match my career field this time.

  • My hubby lost his job a month after we completed baby step 3 (we had six months saved). When he phoned to tell me, he was devastated. I surprised myself by being so chill and saying “ just come home, we will be right”. He stayed home for three months in the summer and looked after the kids and house while trialling and looking for work. His new job is heaps better and a nicer company.

  • Awesome video as always!! Great tips and reminders for anyone who lost there job. Prayers that you find a new job quickly!!

  • Last time I got laid off it took me exactly 19 hours and 24 minutes to get a new job making 9k a year more. Don't worry about getting laid off. The economy is white hot

  • Don’t discount the potential therapeutic benefits of ice cold vengeance and/or arson.
    Kidding aside, I’m really sorry this happened to you. My wife got laid off several years ago from a company she had given nearly a decade to, and it took years to fully process the anger and betrayal we both felt.

  • Sorry about the lay off, but I'm happy your less stressed about it than my family was when my husband was laid off. We are still trying to get our bs1 emergency fund and it's hard, but I know the journey is worth it

  • I was laid off from the last full-time job I've had (so far) ten years ago. I received severance pay and unemployment, but I had no emergency fund. Then I found out rather quickly that age discrimination, as well as discrimination against people with disabilities, are very real. I've had part-time jobs ever since, but they didn't exactly cover the bills I have to pay, so my small retirement fund is now gone, too. I have a part-time job now, and a continuing income flow problem. Recently, I learned the boss at my last full-time no longer has his job (he quit while we were both at the previous company which caused me to be laid off because the company restructured our department after that). That fact has given me one thing to smile about.

  • Great video! Glad to see you back and congrats on the new gig! And please share the deleted scene after the dust settles 😆😆

  • The only time I was "laid off" was literally one week before I was planning on giving my notice. In terms of emotion, I was angry that I had been beaten to the punch. But the good news was, I already had a plan, and at least the feeling was mutual. However, if I wasn't prepared, I probably would have been hurt more emotionally about not being good enough, more so than financially, about "what will I do now?" Overall, I know I have plenty of marketable skills, and since I am debt free (have been a few years), I am not desperate to keep a job I don't love, nor do I need to take a job that I won't enjoy going forward.

  • Ok wth..I was about to start crying because of your intro..you got me!😁 please don't do it again. Its morning here.
    Glad youre back!😉

  • Glad you spoke about rolling over the 401k to the IRA…my children just had some stock that automatically paid them out in full after a merger with a big corporation…they are now on the hook for taxes, even if they now were to put it into an IRA because the money "touched their hands"…they didn't have a choice, but after a job loss you can move the 401K straight into an IRA. … In fact I believe this video should be shared amongst the masses.

  • I'm glad to see you back. I enjoy your posts. People might want to find a temporary part time job while looking for full time employment.

  • My job is joining another division and all of our division know it means layoffs but it won’t happen for another 16 months due to the complexity of the both divisions.

    I’m like yeah I’m not dumb. I stop baby 2 and I’m hording all the money so if i do get the pink slip I got at least 3 -4 months plus that unemployment check to use while I’m looking for a job.

    Great video love it

  • Way to stay positive Dollar Dude, have been through that same scenario 3 times in my lifetime. What I've learned is to try to keep as many contacts in your industry open, ie, make friends with your competitors.

  • This was an excellent video! I'm glad you've gotten a new job. And way to have a rock solid contingency plan! Everyone needs to see this.

  • You have such a positive attitude. There is no way you will remain unemployed. You have this!

  • Love your videos!! Pretty sure you'd be an awesome addition to Dave Ramsey's team if you're looking for a new job 🙂 I had one thing to add to the unemployment video. My hubby got laid off early in the calendar year right around the time we had our first child. I had allocated a bunch of dollars to a flexible spending account, but of course he was only there a few months of that year so he didn't fully contribute. However, because we ALLOCATED the money, ALL of it was ours to submit against! I think I had allocated something like $1500 and I was able to use up all of it (I did things like buy a ton of contacts for both of us way ahead, etc. to use it up). It was awesome and unexpected. Totally something to look into if you put down an FSA allocation and then get laid off. I had no idea this was even a thing.

  • Troy, excellent video. I work in HR and all these tips are spot on but get overlooked when people go through a layoff or dismissal.

  • This is brilliant and hilarious! I'm hitting the bell because for some odd reason I missed this! Hope everything is going well and you got another job!!

  • Thanks for sharing. In 2016, I was laid off twice and I was unemployed for 15 months. After applying to 500 jobs, give or take, I finally landed something promising. Best of luck to you!

  • I don't know how I missed this video, but sorry about losing your job! It can totally suck but you are so right about being fine if you've got an emergency fund. I imagine being completely debt free makes it even better!

  • I agree with budget girl that it is a good idea to create an emergency budget, or what I like to call the zombie apocalypse budget.

  • Don't underestimate revenge. Revenge is good! Revenge will give you purpose. Revenge can augment your skill set

  • I cried in front of both managers…pretty embarrassing, but I only just found out a couple days ago, and this video was really helpful. Thank you 🙂

  • I love your sense of humor! I just got laid off today from my first job out of college after only a month… definitely never expected this! Woooo adulthood is fun. Anyways… anyone hiring?

  • Odd that Americans always affect a British accent when they want to portray an idiot/snob etc as this guy does in #2 – Filing for unemployment. Same as Hollywood…Brits are always either butlers or villains 🙂 Anyway, apart from that his advice is pretty sound.

  • I was just laid off today. I am panicking. Homelessness is freaking me out. What if I lose my car? I live paycheck to paycheck. And NC only gives you 12 weeks unemployment. I have no credit cards, and no severance. Freaking out is putting it mildly. No emergency fund.

  • The last job layoff I had in my case was really and truly a sigh of relief. Of coarse it was a big loss, but over time I found a way to recover. Plus the job I was layed off from was a job I hated.

  • My husband sulked for two years. We're still trying to get out of debt from it. He didn't qualify for unemployment. At the same time I had to take a disability returement. I told my employer I was sick of work. (Just kidding) The disability part was real so our income dropped 75%. We paid off the house with savings. We've been in debt fir 12 years. It started at $135,000 and it's diwn to $13,000. It's been a struggle and we've been raising grandsons for 7 1/2 years. My health insurance has continued and I did get a full pension. My husband finally got a job after two years and wirked for 10 years and was let go. He did get a pension from th Air Force Reserves at age 60 and his pension from the job he lost 12 years ago when he turned 62. In Sept he'll get Socual Security but only 50% because of his other pensions. I feel optimistic about being down to $13,000. Wish I knew then what I know now. Can't wait to be debt free in about 2 years. I have a sinking fund to take the boys to Disneyworld in a couple of years. Strictly on cash!!! Really enjoy your videos.

  • Another factor to consider – since a layoff is considered a "qualifying life event" you can qualify for a new healthcare plan – this is REALLY important for some folks. My cobra was slated to cost me $750/month. My rent is 1000+, groceries 200+… 750 isn't going to fit my unemployment budget (I get 450/week – taxes for my unemployment benefits). I was able to sign up for a healthcare plan that costs 300 per month (and I got the added bonus of financial aid since I was laid off early in the year and my anticipated annual earning was so low, since I had no job – unfortunately the financial aid does have to be paid back in taxes if your annual income goes over a threshold, but it's a great way to keep costs down when you don't have a steady income). CONTACT YOUR HEALTHCARE ORGANIZATION TO SEE IF YOU CAN GET A MORE REALISTIC, EVEN EMERGENCY HEALTHCARE PLAN – as opposed to overpaying for Cobra.

  • I was just laid off out of the blue due to the company that I've been working for is on life support. This video cheered me up.

    Didn't flip out, was stoic, shook my boss and coworkers hands going out. My view is not to burn any bridge's. I've been asked about former coworkers if my company should hire them.

    Be cool and collective. It will pay out in the end.

  • Sorry to hear that you lost your job Troy. .but thanks to your advance planning you're good. ..any updates on the job hunt?

  • I got laid off. My punk Ass boss couldn't even tell me in person or shake my hand. He sent me a text message saying "Thank you for everything, There is no point of you coming in to work. Come in Monday and get your personal belongings" I asked him what did I do wrong? his response was "He is backed up on bills and is closing the business down". I found out he still has some of the other guys working there and they claimed he "called them back to work" No severance package, no letter of recommendation…nothing. I worked there for 6 years. i even took on multiple job roles cause he claimed he could not afford to hire anyone else, no pay increase for 2 years, no vacation or sick days/PTO. I even worked OT with no extra pay. I learned a big lesson. Never stay loyal to any company or business. Get them for every cent. When you see something better go for it. Don't be like me and turn down better jobs thinking all hard work you contributed will be worth it later.

  • Fuck corporate America. This happened to me on Tuesday. Hanging out this week and starting up again Monday.
    I am glad that I never unpacked my bags while I was at the job.

  • i just started my carrier in Software Development. I'm topper of my college. and then yesterday this happened. really devastated . Everyone have high hopes from me. i have student loan to pay whose installments i was paying since day 1 of my job. i will post reply to this comment once i get another job.

  • Funny part is they had me on for next schedule and today yet when I walked in boom they told me they laying me off kinda fycked up

  • Then tried going to my old job to see if I could get my old job back nope got cursed out by the cook called some names ect

  • Just lost my job where I had a company vehicle. They made me clean out as much as I could from it before leaving me with an Uber to get home.

  • it happened to me if you times as someone knowing all the policies and procedures of a company and even correcting seniors and helping them I was shocked that I lost my previous job but apparently if you show your knowledge right away in a third world country they will wait for your mistakes

  • I was laid off today.  Bummer.  I was professional about it; I packed my stuff and left without any drama.  Luckily, my wife & I followed the Dave Ramsey plan and became debt free in 2018 so this is an inconvenience rather than a crisis.  I'll file for unemployment Monday (two days for me was one of your tips).  I think I have a legal cause of action, but my wife would rather me not pursue it…I'll see.I don't know much about unemployment insurance (never needed it), but I guess I'll learn in the next few days.  Ideally, I can use some time to go back to school for retraining, but I don't know how long I would have or if I can even do that…again, I'll see.The worst thing about this that I wish I left on MY terms rather than theirs.  Man, if I just had some more notice I could have found another teaching job…either at a local college (or even high school) before all the schools in the area started up for the current school year.Anyway, thanks for the video; It helped.

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