You got fired: what to do with your money –


) – When you are firedyou are not going to be in the clearest frame of mind to take care of your financial life.

It can be challenging at first to do just about anything, says Pamela Capalad, a New York-based certified financial planner. “But you have to deal with the financial stuff.”

To safeguard your finances, consider the following first steps.

Secure your HR contact

“Before you walk out the door, and companies can say you’re out in five minutes, make sure you have a contact,” says Andrea Kay, Cincinnati-based author of “Work’s a Bitch and Then You Make It Work.” ” and various other career books.

Having someone to connect with at your former employer, like a human resources professional, will be crucial if you need help renewing your 401(k) retirement plan, or if there’s a problem with your severance pay.

Find out if there will be compensation

Your employer may or may not offer compensation. Depending on the company and the laws in your state, this could include severance pay, as well as any other paid time off you were entitled to. Like other forms of income, severance pay is subject to income tax.

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