Job loss2 min read · Updated October 21, 2026
Laid off? The first-week money checklist
What to do in the first week after a layoff: file for unemployment, decide on health cover, work out your runway and keep the bills you cannot skip.
File for unemployment right away
Benefits and amounts vary by state, and payment often starts after you file, not when you were laid off. File the first week, even if you expect a severance package. Ask whether severance delays benefits in your state.
Sort out health cover
You generally have about 60 days to elect COBRA, and it can be backdated. A Marketplace special enrollment period for loss of coverage also runs about 60 days. Compare the two: COBRA often costs more.
Work out your runway
$20,000 against $3,800 a month is 5.3 months. Cutting half of the non-essentials brings costs to $3,500 and runway to 5.7 months. Plan for a four-month search.
Protect the bills that matter
Housing, utilities, insurance and car payments come first. Call lenders and ask for hardship options before you miss one. Credit card minimums can usually wait a short time if you speak to the issuer first.
Common questions
How long do I have to elect COBRA?
Generally 60 days from the date of the notice or loss of coverage, whichever is later.
Is severance taxed?
Yes, as ordinary income.
Should I roll over my 401(k)?
Often yes, to an IRA or a new employer plan, to avoid tax and penalty.