Crozer-Keystone health system closing their doors is a tragedy for the local companies surrounding Chester and Delaware County. Not only the communities, but the hard-working medical professionals that have worked for the health system their entire careers. Everyone in healthcare knew that they were one of the top burn centers in the nation. Such a huge loss, and very sad.
As an employee, or if I was one of the nurses that was being let go, one of the biggest questions I would have is “What Next?”
In times like these people can make rash decisions that really set them back financially. Losing a job is a stressful event to endure, but luckily, these jobs will likely be migrated to other health systems, and not completely eliminated.
As a nurse, and a CERTIFIED FINANCIAL PLANNER®, below are 10 things I would do, and 5 things I would NOT DO after losing my job.
10 THINGS TO DO
1 Assess Your Emergency Fund
Check how many months of expenses you can cover—this guides your urgency and strategy for finding a new position. A good rule of thumb:
- 3 months if you are dual income household
- 6 months of expenses if you are a single income household
In times like these, emergency funds are the saving grace for individuals until they secure a new position.
2 Create a Bare-Bones Budget
Cut all non-essential spending to stretch your savings while still covering basics. Now, this may sound harsh, but there is a chance of $0 coming in the door each month when you lose your job. Eating out, travel and other non-essential spending should get pushed out until another job is secured.
3 Prioritize Essential Expenses
Focus on rent/mortgage, utilities, food, transportation, and insurance. Again, a solid emergency fund will get you through for 3 months (minimum) of fixed costs.
The challenge is what is “essential” and what is “non-essential”? If your emergency fund is not going to cover it, and it is increasing the risk of landing you in a large credit card debt balance, then it may not be essential. If you do not have an emergency fund, this is when I would suggest adding in a third party to review the situation and figure out most efficient way to pay bills or take on debt, until you can secure a role.
4 Apply for Unemployment Benefits Immediately
It can take time to process, and you’ll want that cash flow as soon as possible. Getting a new job can take a couple weeks, to a few months. You just lost your job, do not feel like it is a bad thing to apply for unemployment. That is what it is there for, and you are a hard-working medical professional that needs to pay their bills. You also work and pay taxes for this benefit 🙂
5 Pause or Reduce Debt Payments If Needed
Contact lenders for hardship options, deferments, or lower payment plans. *THIS IS A BIG ONE*. Many companies will be able to negotiate, pause, or make exceptions for qualified hardship likes job termination. If you are overpaying on debts, this is not smart to do anymore.
6 Evaluate Health Insurance Options
Compare COBRA, ACA marketplace, or a spouse’s plan—health costs can sink finances.
You do not want to go uncovered. This is a huge risk if you had your benefits through Crozer. COBRA IS EXPENSIVE, but so is an expected health event while being uninsured…. again, add an expert or consultant that can give more clarity on this topic.
7 Track Every Dollar
Use apps or spreadsheets to monitor spending—what gets tracked gets managed.
I am not usually a fan of this to a T…BUT finances are on life support after losing a job. Some individuals live paycheck, to paycheck. If you do not track every dollar, you could find yourself in compounding, negative debt (credit cards).
8 Hold Off on Big Purchases
Delay travel, gadgets, or home upgrades until your income is steady again.
This should be self-explanatory, but most people when they get laid off, do not plan a cruise, European trip, or buy a new car. Remember, this is a temporary setback, and you could be in an even better position financially if you secure a higher paying job shortly. Short-term pain, long-term gain.
9 Look for Side Gig
Freelancing, part-time work, or teaching can really add to supplemental income, and could even lead to a full-time role.
There are plenty of nursing programs looking for adjunct professors, or clinical staff. This could be a good opportunity to apply and add supplemental income for the time being.
10 Talk to a Financial Advisor If You’re Unsure
A quick consultation can help protect your assets, guide smart decisions, and give personalized advice.
Of course, you saw this coming 🙂
The reality is many individuals will stick it out themselves and try to “figure it out”. Some may, and some may not.
For the newer nurse that just started their career, they will probably be fine.
For a doctor, respiratory therapist, nurse, administrator, or any other professional 5-10 years or closer to retirement, this could significantly impact their retirement picture.
The question is, will having a planner (specifically a CERTIFIED FINANCIAL PLANNER®) reviewing your situation after a major life change help, or hurt your future?
It will 100% help.
SO – let’s talk about 5 things to NOT DO after losing your job.
5 THINGS TO NOT DO
1 Don’t Rely Heavily on Credit Cards
Interest adds up fast—avoid using credit unless it’s truly an emergency.
This may be a challenge if you have no emergency fund, already were working on paying down debt, or if it takes a while to find a new position. I would hate to see someone lose their job and supplement their lifestyle just on plastic.
2 Don’t Cash Out Retirement Savings (Unless Absolutely Necessary)
Early withdrawals often come with taxes, penalties, and long-term loss. This is a huge area when working with an advisor can bring a ton of value. Specifically, what to do with the retirement account now that Crozer is gone? How to move the money from Principal? What are the tax ramifications? If 55 or older, should we use this money now? Do I have enough to just retire?
Setting up time to discuss the retirement account alone, and how to most efficiently have it invested (whether at Principal, IRA, or new job) is invaluable.
3 Don’t Ignore Bills
Avoid late fees and credit damage—call creditors before you fall behind. As mentioned above, things do not get better overnight, and debt does not just “go away”.
We have helped clients use other assets (home equity, brokerage assets, etc.) to help combine debts. Consolidated debts, and limiting unnecessary bills should be priority #1.
4 Don’t Panic
Some people may shut down or panic after losing a job. Not to sound harsh, but people lose jobs all the time. Luckily, as a medical professional, you have one of the most marketable skills on the market. Nurses, doctors, respiratory therapists, technicians, surgeons, and any other specialized role will be available elsewhere.
5 Don’t Skip Financial Planning Out of Fear
Ignoring your finances makes things worse, facing the numbers put you in control.
People make financial plans for times like these, and people start to make a financial plan after times like these. Do not miss this chance to start fresh and build a plan from the ground up.
Get a new job offer, figuring out benefits, reviewing investment gameplan, crafting an estate plan, cash-flow guidance, debt repayment strategies, and so much more goes into crafting a full financial plan.
Get started now while you have the time off, and can work on it with someone you trust.
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I wish you the absolute best on your journey away from Crozer. The Philadelphia, and tri-state area is the hub for great healthcare systems. PENN, JEFF, CHOP, NEMOURS, CHRISTIANA, COOPER, INSPIRIA, HOPKINS, etc. etc.
If there is anything I can do to help you on a personal level with planning, or on a professional level with connecting you with recruiters, other medical professionals at different health systems, or general career advice, happy to do so.
Be well, and brighter days ahead for all of Crozer-Keystone employees!
