HUNTSVILLE, Ala. — Financial experts advise that there should be two things that we have as a foundation in case of a layoff.
1. Emergency funds
2. Insurance contract.
But what do you do if you're laid off and don't have those things?
"You're going to have to have a heart-to-heart conversation with yourself, and look at wants versus needs, and maybe even getting a part-time job in the meantime," says Edward Jones Financial Advisor, Christopher Smith.
"Maybe cutting back on a couple of entertainment things," Smith added.
WZDX News spoke with a partner at New York Life Insurance also, but they chose not to be on camera.
Here's what they suggest you do if you're laid off.
List of all your creditors - i.e., mortgages, car loans, student loans, utilities services, and credit cards. Call them as soon as possible and ask for 'forbearance'.
Forbearance is making an appeal or grace period on an obligation that you have. Experts say there have been cases where clients have six months of services for free, but was obligated to have a six month contract at the end of that period.
Second, any kind of pension money, rollover or IRA money can used.
There is a tax exemption IRS code '72-t', that allows you to get your hands on the money without paying a penalty.
Thirdly, look at sectors of the economy that will be in great demand. Some of those include the health sector, warehousing, packaging, and supply chain.
Delivery service is another big one. New York Life experts advise people to ask for a contract with the delivery service companies.
Financial advisors say these steps can be taken as soon as Monday, and could provide a credible relief on the spot.