Question 1

How long will my savings last after a layoff?

Accepted Answer

It depends on your monthly spending and what income you have coming in. If you have $20,000 saved and spend $3,500 a month with no other income, that's about 5.7 months. Add unemployment benefits of, say, $1,800 a month and that same $20,000 lasts closer to 11 months. The math isn't complicated, but most people underestimate their actual spending. Use a calculator with your real numbers, not rough guesses.

Question 2

Should I take COBRA or get marketplace health insurance after being laid off?

Accepted Answer

COBRA lets you keep your exact current plan, which matters if you have ongoing prescriptions or doctors you want to keep. But it's expensive: you pay 100% of the premium plus a 2% admin fee. Many people pay $700-$1,500 a month for COBRA. Marketplace plans through healthcare.gov are often much cheaper, especially if your income drops significantly after a layoff. A silver plan with subsidies might run $0-$200 a month depending on your income. You have 60 days from losing coverage to pick COBRA, and losing job-based coverage counts as a qualifying life event that lets you enroll in a marketplace plan outside the normal open enrollment window.

Question 3

How do I apply for unemployment benefits?

Accepted Answer

Apply through your state's unemployment website as soon as you're laid off. Don't wait. Most states have a one-week waiting period before benefits kick in, and delays in filing mean delays in payment. You'll need your employer's address, your last day worked, and a general reason for separation (layoff, not fired for cause). Benefit amounts vary by state. In California the max is around $450 a week; in Massachusetts it's closer to $900. Most states pay 40-50% of your prior weekly earnings up to a cap. Benefits typically last 26 weeks, though extensions have been available during recessions.

Question 4

What expenses should I cut first after a layoff?

Accepted Answer

Start with subscriptions. Most people have $150-$300 a month in streaming, software, gym, and delivery service charges they barely use. Cancel anything that isn't essential. After that, look at dining out and food delivery, which is usually the second largest flexible expense. A household spending $600 a month on restaurants can often cut that to $150 without feeling deprived. Don't touch your retirement contributions yet if you can avoid it. The tax hit and penalty on early withdrawals is bad enough that keeping $500 a month going into a 401k is often worth it versus pulling money out later at a 10% penalty plus ordinary income tax.

Question 5

How long does the average job search take after a layoff?

Accepted Answer

The Bureau of Labor Statistics has tracked this for years. As of recent data, the median duration of unemployment is around 8-10 weeks, but averages are skewed by people who take much longer. In a tight job market, experienced mid-career workers in tech or finance can take 4-6 months to land something comparable. Senior roles take longer. The honest answer is: plan for at least 3 months and have cash for 6. If you find something in 6 weeks, great. If the market is rough and it takes 5 months, you won't be desperate enough to take the wrong job.