As the coronavirus continues to run its course, it has caused many businesses to furlough many of their workers.
A furlough is an employer-mandated, temporary unpaid leave from work that employers use to help save money.
If you or anyone you know has been furloughed, these are the five actions that you should take.
5 Actions to Take When Furloughed
1. Ask Your Employer These Questions
When you get furloughed, it is important to ask your employer three questions.
- How long will I be furloughed?
- Will I still be receiving my benefits during this time of absence?
- How will my paid vacation, stocks, sick leave, and 401k be affected?
Based on the answers you receive, it will help you determine what you will need to do during this time and if action must be taken to find a new healthcare plan, a new job, etc.
2. Apply for Unemployment
Although it may be challenging to receive unemployment due to the high demand, it is still a good idea to try. The amount of unemployment you may receive is determined based on your income and the state you live in.
3. Take Advantage of Short Savings
During this time, many banks are waiving certain fees or allowing borrowers to defer making payments to assist their customers. The next time you need to make a payment, call or look online to see if your bank or credit union is doing anything to help their members.
If you have federal student loans, you can utilize the CARES Act to help stop those student loan payments until September 30, 2020. In addition, there is temporarily no interest.
Related Article: How to Help Your Clients Find the Financial Assistance They Need
4. Seek Advice From a Financial Advisor
With the ever-changing environment, it is an ideal time to seek financial guidance from a financial advisor. They can help you with your taxes, provide assistance setting up a budget, give you advice about your investments and estates, and provide you with other financial advice that you may be seeking.
Read more: Benefits of Having a CPA at Every Stage of Your Life
5. Stay Within a Budget
With a lack of income, it is important to be cognizant of your spending. You do not want to overspend or build more debt. Take the time to set up a weekly or monthly budget. If you need help, feel free to talk to your financial advisor.
Related Article: How to Manage Your Parent’s Bank Account
Do you need help with your finances?
We want to give our clients the resources they need to make the best financial decisions based on their circumstances. If you or your loved one needs guidance regarding your finances, contact us at 951-686-3608 to find out how we can help.