With recent layoffs across tech firms, media outlets, and even government agencies, concerns over job security are understandably on the rise.
Losing a job can be overwhelming, with effects that ripple through your personal, emotional, and financial life. But experts say there are practical steps you can take to reduce stress and stay focused on your next move.
“A layoff can feel deeply personal, but it’s not a reflection of your worth or contributions. In the U.S., our work is so closely tied to our identity,” said financial therapist Lindsay Bryan-Podvin.
Here’s what experts suggest to help you manage both your finances and emotional wellbeing after losing a job:
Pause to process your emotions
Job loss often triggers a mix of emotions — from anger and sadness to shock or even relief. Experts say it’s important to acknowledge these feelings before jumping into your next steps.
“Acknowledge and normalize that they're going to feel a range of emotions, whether it's anger or sadness,” Bryan-Podvin explained.
Giving yourself time to sit with those emotions can help you approach your next steps with more clarity.
Assess your financial position
The first practical step is reviewing your finances, said career coach Marlo Lyons. Revisit your budget to identify areas where you can cut expenses, at least temporarily. If your employer offered a severance package, understand how long that money will support you.
It’s also important to apply for unemployment benefits as soon as possible, Lyons advised. The payout may not match your previous salary, but it can help cover essential expenses during your job search. The U.S. Labor Department offers resources on how to apply.
Your job doesn’t define you
Being laid off can damage self-esteem, but Bryan-Podvin encourages people to list the qualities that contribute to their value beyond work — what she calls a “non-financial asset list.”
“If I were doing a non-financial asset list on myself, I might say I’m a pretty good partner and a fun aunt,” she shared.
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This simple exercise, she said, reminds people that their self-worth extends far beyond their paychecks.
Rework your spending habits
According to Jesse Mecham, founder of the budgeting app YNAB, job loss requires a more intentional approach to every dollar you spend.
“In a layoff, it becomes even more imperative that you treat every dollar with more attention than you have in the past,” Mecham said.
His advice: Assign every dollar a specific job — whether it’s rent, groceries, or building savings.
Bryan-Podvin added that adjusting your lifestyle should come with some self-compassion. Budgeting cuts can affect enjoyable activities, but remind yourself this is temporary.
Be cautious with credit cards
Relying too heavily on credit to get by during unemployment can backfire, experts warn.
“If getting a new job takes them a little longer than they thought, that credit card has just become an anchor for them,” Mecham said.
Instead of using credit to maintain your usual spending habits, focus on cutting costs wherever possible.
Use community resources
Look for community aid programs that can provide relief during tough times. Food banks, utility assistance, and temporary hardship programs can help bridge the gap, Bryan-Podvin noted.
The government’s USA.Gov website includes a benefits finder to help identify programs you may qualify for.
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Job hunt with intention
When you’re ready to job search, Lyons suggests taking a moment to reassess your professional goals. If you plan to stay in the same field, make sure your resume highlights what you can bring to future employers, not just what you’ve done in the past.
“You want to show the employer what you can do, what unique value you can bring to that particular job that no other candidate can bring because of your previous experience,” Lyons explained.
Networking is also key. Reach out to past colleagues via LinkedIn, attend industry events, or earn new certifications to enhance your profile, she added.
Stick to a daily routine
Creating structure in your day can ease anxiety and help you stay motivated, Bryan-Podvin said. She recommends setting aside specific times for meals, exercise, and job searching.
Without a routine, unemployment can feel disorienting, especially if the layoff was unexpected, she added.
Bryan-Podvin also emphasized the importance of avoiding isolation and leaning on friends, family, or support groups for encouragement during this period.