Navigating Career Uncertainty

1. Assess Your Emergency Fund

• Determine the dollar amount of liquid savings you have that you can access without penalty (e.g. checking, savings and non-retirement investment accounts). [Step A]
• Determine the total monthly amount of all of your essential expenses (housing, utilities, food, insurance). [Step B]
• Determine how many months of essential expenses your emergency fund would cover; calculated by dividing your “Liquid Savings” Step A by “Total Monthly Expenses” Step B. A target of 3–6 months is the normal goal while working.
  
• Immediately freeze or eliminate non-essential spending (streaming subscriptions, dining out, travel) to extend your runway.

2. Create a 60–90-day “Survival Budget”

• Prioritize “needs” vs. “wants.”
  
• List fixed costs (mortgage/rent, utilities, insurance premiums) + variable essentials (food, fuel).
  
• Do not initiate any large discretionary commitments (new car loans, major renovations, vacations).

3. Apply for Unemployment Benefits ASAP

• For Michigan: file your claim with the Michigan Unemployment Insurance Agency (UIA) the first week you are unemployed. Ideally this is by the Friday after your last day of work. If you file late (<14 days) you’ll need “good cause” and benefits may start later.
  
• Michigan Unemployment Details:
  • Eligibility in Michigan: you must have wages in at least one quarter with minimum earnings ($4,842 in 2025) and wages in at least two quarters of the base period.
    
  • Your weekly benefit is based on your historical quarterly earnings with a maximum benefit of $446 a week.
    
  • Maximum weeks: historically up to 20 weeks; legislation effective April 2025 moves this to 26 weeks.
    
  • When you receive benefits, you must be able and available for full-time work, actively seeking work.
    
  • Michigan Resources: Michigan.gov Unemployment Benefit Handbook

4. Review Severance Pay - Structure Matters

• If you receive severance, check whether your severance is a lump sum or salary continuation.
  
• A lump sum may accelerate taxes; continuation may let you keep benefits like healthcare longer. Decide what fits your needs.

5. Confirm Payout of Unused PTO/Vacation

• Check your employer policy (or your contract) regarding earned but unused paid time off.
  
• Don’t assume you lose it — often employees are owed it.

10. Decide what to do with your 401(k)/403(b) or pension plan

• Options: leave it in the old employer’s plan (if allowed), roll it into an IRA, roll it into your new employer’s plan, or cash it out (see below).
  
• Avoid cash-outs (if you can): if you’re under the age 59½, you’ll typically incur a 10% early withdrawal penalty plus income taxes.

11. Avoid Early Withdrawals Unless Absolutely Necessary

• Before withdrawing retirement savings, explore alternatives: hardship withdrawal, loans (if permitted), budget adjustment. The long-term cost of losing tax-deferred growth and incurring penalties is high.

12. Check Equity Vesting/Stock Options/RSUs

• If you held stock options or restricted stock units (RSUs), verify what happens after termination: are unvested shares forfeited, what is the deadline to exercise vested options?
  
• Confirm via your separation agreement or equity plan documents.

13. Plan for Severance Taxation

• Severance pay is taxable income. If paid as a lump sum you may trigger higher withholding or move into a higher tax bracket. Consider estimated tax payments to avoid under-payment penalties.

14. Track Job-Hunting and Healthcare Costs

• If you itemize, some states/tax years allow deductions for unreimbursed job-search expenses, but rules are narrow and subject to change — maintain documentation if applicable.
  
• Premiums paid under COBRA may also impact deductions or credits.

15. Manage Unemployment Withholding

• Unemployment benefits are taxable. We recommend having taxes withheld for both federal and state taxes (or make quarterly estimated payments) to avoid a “tax surprise” when you file your taxes.

16. Contact lenders proactively

• For car loans, student loans, and credit cards - call lenders to request hardship programs, deferred payments or temporarily lower payments. Proactive action protects credit and cash flow.

17. Protect Your Credit Score

• Make sure utilities, minimum credit card payments and other critical bills are paid on time. Missed payments linger on a credit report and hurt your borrowing ability.

18. Avoid Taking On More Debt

• Do not finance major purchases (cars, furniture) or assume you’ll immediately qualify for new credit. Focus on maintaining liquidity now.

19. Get Your Separation Terms in Writing

• The written separation agreement should clearly state severance amount, benefit continuation (health, life, pension), timing of payout, stock/RSU vesting, non-compete clauses, references and rehire eligibility.

20. Review Non-Compete Agreements

• Review any do not compete or non-solicitation agreements. These may limit your job search opportunities. Understand the geographic scope, duration, and whether the former employer may enforce these.

21. Download Digital Copies of HR/Pay Records

• Pay stubs, W-2s, performance reviews, 401(k) statements, bonus or commission earnings. These may only be available for a limited time after employment ends.

22. Verify Unpaid Bonuses, Commissions, or Reimbursements

• If you had earned compensation or expense reimbursement that is due upon termination, check the payout schedule and eligibility conditions.

23. Create a Structured 90-Day Job Search Plan

• Revise your resume, update LinkedIn profile, reach out to your network, schedule informational interviews. Set weekly goals: number of contacts, job applications, callbacks.

24. Explore Interim Income Options

• Freelancing, consulting, contract work, gig economy — any source of income can extend your runway and reduce pressure.
  
• Make sure to understand how interim income may affect unemployment eligibility (in Michigan you may be required to report any earnings and your unemployment benefits may be adjusted).

25. Consider Up-Skilling or Certifications

• Use this transition as an opportunity: certifications, micro-credentials, skills training (especially in growth industries) can enhance employability and future earning power. Check if training grants are available for displaced workers in Michigan.
  
• Create a new routine and schedule. When not actively searching for employment or networking, find a productive use of your time (e.g., fitness routine, a walk outside, develop new skills).

Being fired or laid off is not a failure — it is a forced pivot. With the right actions and support, you can maintain control of your financial foundation, reduce stress, and emerge stronger. Each day is a new day to build a better future.

You don’t have to navigate this alone. We are here to help.