Lost Your Job? What to Do in the First Two Weeks
File for unemployment this week, and pick health coverage before the Marketplace’s 60-day window closes. Both are time-sensitive; most of the rest can wait a few days. Then work out how many months your cash will last, with the new health premium included, and use your 401(k) last.
The first two weeks
| Do this | When | Where |
|---|---|---|
| File an unemployment claim | As soon as possible after your last day | Your state’s program, found through CareerOneStop |
| Choose health coverage | Within 60 days of losing job-based coverage | HealthCare.gov, or the COBRA notice from your plan |
| Check your final paycheck and any severance | First week | Your employer; your state labor department sets final-pay timing |
| Work out how long your cash lasts | First week | The worked example below |
| Call lenders and your landlord | Before the next due date | Your servicer; a housing counselor for mortgage or rent trouble |
| Ask about food and bill help | First week | SNAP in your state; dial 211 |
Rules for unemployment, final pay and food assistance are set state by state.
File for unemployment now, even if you’re unsure you qualify
Unemployment insurance pays eligible workers who lose a job “through no fault of their own,” and each state runs its own program with its own rules (U.S. Department of Labor). The Labor Department’s advice is to contact your state’s program as soon as possible after you become unemployed. Let the state decide whether you qualify.
Unemployment benefits count as taxable income. You’ll get a Form 1099-G, and you can ask the state to withhold federal tax with Form W-4V (IRS Topic 418). Without withholding, the IRS says you may need to make quarterly estimated payments instead.
Final pay and severance
Federal law sets no deadline for a final paycheck; some states require immediate payment, so your state’s rule is the one that counts (Department of Labor). Severance is different. It’s a matter of agreement between you and your employer, with no federal requirement behind it, per the Labor Department’s severance page. Read what a severance agreement asks you to give up before you sign.
How long your cash will last
Divide the cash you can reach by your monthly essentials: rent, utilities, groceries, transportation, minimum debt payments and insurance other than health, which gets its own line. The emergency fund guide lists what counts as essential.
| Line | Calculation | Example |
|---|---|---|
| Cash you can reach | Savings plus checking, not retirement accounts | $9,000 |
| Monthly essentials, not counting health coverage | Before any cuts | $3,000 |
| Health coverage | COBRA on an average single plan | about $833 |
| Months your cash covers | $9,000 ÷ $3,833 | about 2.3 months |
Example figures are illustrative. The COBRA figure is KFF’s 2026 average single premium, $9,804 a year, at the 102% COBRA limit, divided by 12; see the health insurance guide.
That’s a little over two months. In October 2026 the median unemployed person had been looking for 11.9 weeks, and the average was 27.1 weeks, a little over six months (Bureau of Labor Statistics, Table A-12). So cut now. In this example, every $300 trimmed from the monthly figure adds nearly a week. Compare a Marketplace quote with the COBRA bill, too, since the premium is one of the few large lines you can change quickly. Unemployment benefits stretch the runway, but plan without them until your state approves the claim.
Call before you miss a payment
Call your mortgage servicer, card issuers and landlord as soon as you know money will be short. Ask what hardship options they offer and what each one costs you later.
- Mortgage or rent: a housing counselor can advise on forbearance, defaults and renting. The CFPB’s search tool lists agencies near you from HUD’s approved list.
- Federal student loans: ask your servicer about the unemployment deferment. Keep paying until you’re told it’s approved, and ask whether interest keeps building on your loan type (Federal Student Aid).
Apply for food help now, not later
SNAP food benefits are applied for in the state where you live, with income and resource limits (USDA). Your income has just changed, so an earlier no may not hold. For help with bills, food and local programs, dial 211, which connects you to local services (211.org).
Use your 401(k) last
Taking money out of a workplace retirement plan before age 59½ usually adds a 10% tax on top of regular income tax. One exception fits a job loss: money from the plan of an employer you left at age 55 or later is spared that extra tax (IRS Topic 558). Use that money last, after unemployment, savings and every program above.
When you’re working again
Start rebuilding with the small pieces: a few days of supplies and a little cash at home, then savings measured in months. The 72-hour emergency kit guide covers the first step, and the where to keep your emergency fund guide covers the account.