Finances Should Be One Of Your Primary Concerns

A layoff notice means a lot of things. Because of corporate downsizing, you didn't just lose your job, you lost your steady paycheck, your insurance, and now you'll have to dip into your savings. You'll likely have to cut corners, which means not buying the dress you've been coveting as well as sacrificing your subscription to ESPN. However, being laid off doesn't have to be devastating and you can keep you family afloat. Here are the first few issues a downsized employee should be considering.Begin the Right Way Employee layoffs are now common because of the state of the economy. Once you've received that layoff notice you'll want to file for unemployment benefits right away. Even if you are receiving a severance package from your employer you are entitled to these benefits. However, it can take several weeks for your application to become a check - especially with the sharp rise in layed off employees. Although the check won't replace your old salary, the extra money could help your family get through the economic crisis. According to the Department of Labor, the average benefit payment is about $300 a week. However, this varies based on your previous salary. Applications for unemployment insurance vary by state so check CareerOneStop to find yours.Stay Healthy While You Are Laid offHealth insurance can be expensive and having an employer provide a health plan is convenient. A job layoff notice doesn't necessarily mean you've lost health insurance though. It is possible to extend your previous coverage through COBRA and retain the insurance you had with your employer. This means you won't have to look for a new provider and worry about being turned down for a pre-existing condition. However, this option can be expensive, as you'll have to pay the full premium plus an administrative fee. This option can be a good one for laid off middle-aged people with families, but the young and healthy are probably better off finding private insurance. Experts say paying out of pocket is never a good idea.Don't Dip Into Your 401k Without Really Good ReasonsYou received your layoff notice, you see your savings account dwindling, you're thinking about dipping into your 401k. Financial experts however suggest against it. Not only because its your nest egg and what you plan to retire on. Dipping into your 401k will trigger penalties and taxes. You might find you're not getting as much as cash as you thought which can be pretty devastating for a laid off employee. A person under 59 will have to pay a 10 percent federal tax penalty, as well as a state tax penalty for an early withdrawal. So a $10,000 withdrawal could lead to only $6,000 cash in hand. You and Your Family Can Get Through ThisThe economic crisis means times are tough and unemployment rates are high. However you don't have to let this bring you down. With the right tools and knowledge in hand you and your family can stay afloat. You'll likely have to cut back on luxuries and non-essentials, but if you know how to handle your finances there will still be food on the table.