How to administer compensation and organize personal finances after a layoff

Losing a job represents one of the biggest financial challenges for any worker. In this context, financial planning expert Adrián Pablo Jacquet explained, in an interview with Canal E, the priorities when managing severance pay, how to preserve capital, and why financial planning is crucial during the transition until a new income source is found. Jacquet noted that interest in this topic has grown significantly in recent months. “There have always been inquiries about this subject. Clearly, since the reform, there has been a sharp increase. Not just from people going through this situation, but also from those anticipating it might happen to them. In that sense, the number of consultations has notably risen,” he stated. When we talk about severance pay, Jacquet emphasized that the first mistake is treating it as money available for aggressive investment or paying off debts without proper planning. “The first thing we need to understand is that severance pay is a bridge. It’s a bridge between the moment when someone loses their income and when they return to generating that salary or starting independent work. Therefore, the treatment of that capital should be entirely different from an extraordinary gain,” he said. For that reason, Jacquet recommended acting with caution. “Unfortunately, at that time, one shouldn’t make such decisions, but rather be cautious,” he added. The importance of having a planned budget was another key point. Before considering investments, he advised creating a detailed budget that allows individuals to determine how long they can sustain themselves without regular income. “Something that isn’t very common in Argentina is having our budget planned. Being able to detail which expenses cannot be negotiated during this phase,” he explained. Among these expenses were food, housing, education, and health care. From that calculation, Jacquet argued that each worker could determine “how many months or years I can survive,” taking into account that “some people find employment more quickly, while others require a considerably longer period to get back to work.” He also warned against the risk of investing in overly volatile instruments during this period of uncertainty. “One of the things that should be guaranteed is preserving the capital,” he asserted.