5 Steps to Take in the First 72 Hours After a Layoff (So You Don’t Panic-Spend)

Getting laid off can feel like the floor drops out from under you. Even if you have savings, the uncertainty can trigger rushed decisions—like draining retirement accounts, racking up credit cards, or ignoring important paperwork. Career counselor–turned-coach advice tends to be consistent here: treat the first few days as “stabilization mode,” not “solve your whole life mode.”

1. Stabilize your head before you touch your money

Psychologists who work with job loss stress that shock narrows your thinking. The goal isn’t to feel perfect—it’s to avoid making permanent decisions while you’re flooded with adrenaline. Give yourself a short window to breathe, sleep, and talk it through with someone you trust. A calm plan beats a fast plan almost every time.

2. Find out exactly what you’re owed (and when)

Before you make any big financial move, get clarity on your final paycheck, unused PTO payout, severance terms, and whether benefits continue temporarily. Many people assume they know what’s coming and budget off that assumption—then get surprised. Ask for the details in writing so you can plan with real numbers.

3. Protect your health coverage immediately

For older Americans, coverage decisions can carry real consequences. If you’re losing employer insurance, you’ll typically have options—continuing coverage for a period, joining a spouse’s plan, or switching to an individual plan. The wrong move can be expensive later, so this is one area where it’s worth slowing down and reading carefully rather than guessing.

4. Do a “bare minimum” budget, not a full makeover

You don’t need a perfect budget in week one. You need a temporary plan that covers essentials and stops money leaks. Start by listing the bills that must be paid—housing, utilities, insurance, minimum debt payments, medications, and groceries. Then put a short pause on nonessential spending until you have a clearer timeline.

5. Treat retirement accounts as a last-resort tool

Financial planners often warn that the cost of touching retirement money early can be larger than it looks. Even when it feels like “my money,” taxes, penalties, and lost growth can turn a short-term fix into a long-term setback. In most cases, it’s smarter to explore other options first—budget cuts, temporary income, payment plans, or assistance programs—before you treat retirement savings like a checking account.