Unemployment probably never crossed your mind until COVID-19 hit. If you or someone you know may be affect, here are a few practical steps you can take to make sure you are prepared:
- Cash is king. Make sure to prioritize beefing up your emergency cash savings. We recommend having 3-6 months worth of expenses set aside in an emergency fund.
- Cash flow. Revisit the budget and make sure you have a good idea of your inflows and outflows. Identify some of your outflows that can be trimmed back in the event of unemployment.
- Unemployment benefits. Make sure to research your state’s unemployment benefits. Each state differs but these benefits can help replace your loss of income for a period of time. And the CARES act helped expand the funding for the unemployed (read more).
Hoping for the best and preparing for the worst can help provide some comfort in a time of great uncertainty. Just like our investments, the best thing we can do is focus on the things we can control: beefing up our cash position, trimming expenses, and becoming well versed in the benefits that are available.