Financehow-toLayoffs and RecessionManaging Debt

How to financially prepare for a layoff

The 2023 layoffs are off to a rough start – according to , there are 128202 people laid off from 482 tech companies as of March 13, 2023. Although this is tracking mostly tech companies, there’s articles and news saying that it’ll begin to hit medical and education sectors soon. Whether or not this is the start to something, if you’re already feeling fear of losing your job, it’s always better to prepare for the worst and make you sure have everything in order just incase something happens.

Preparing for a potential layoff can be stressful, but it is important to take steps to protect yourself financially. Here are some tips:

  1. Create a budget: Start by reviewing your current income and expenses to determine where you can cut back if you lose your job. Make sure you have a clear understanding of your monthly expenses and prioritize them according to what is most important.
  2. Build an emergency fund: It is essential to have an emergency fund that can cover your expenses for at least three to six months. This fund can help you pay for essential bills while you look for a new job.
  3. Reduce your debt: If possible, pay down your debt to reduce your monthly expenses. This can also help you avoid high-interest payments in case you have to use credit cards or loans to cover expenses during a layoff.
  4. Look for additional sources of income: Consider taking on a side hustle or freelance work to supplement your income. This can provide you with additional cash flow while you look for a new job.
  5. Check your benefits: Review your employee benefits and find out if you are eligible for unemployment insurance, severance pay, or any other financial assistance that may be available.
  6. Update your resume and start networking: Update your resume and start networking with colleagues, friends, and family members who may know of job opportunities. This can help you find a new job more quickly if you are laid off.

Remember that preparing for a layoff financially can provide you with peace of mind during a difficult time. By taking these steps, you can reduce your financial stress and focus on finding a new job.

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