Secure Your Finances: 3 Smart Money Moves for Job Uncertainty

No one can deny that a job loss Can result in significant financial strain and emotional distress. The American Psychological Association has discovered that being laid off and remaining without work for an extended time can cause post-traumatic stress.

Learn More: 7 Tested Strategies to Boost Your Savings by $1K This Month

Find Out: How Middle-Class Workers Are Secretly Turning Into Millionaires — and You Can Do It Too

While you might be able to read the tea leaves in your workplace and sense when it’s time to update your LinkedIn , you may not always be able to jump to a new job fast enough to dodge the axe.

While nothing can fully get ready for potential layoffs There are specific financial steps you can take currently to mitigate the effects and assist in maintaining stability. Ideally, your concerns might not materialize, but acting preemptively is an effective means of turning worry into readiness.

The WellnessInvestigator explored the top financial strategies to adopt currently if you're concerned about your employment stability.

Generating extra revenue can easily be achieved without complexity. You may begin this week.

Create Tiers of Savings

Fingers crossed, you've established an emergency fund covering six to twelve months' worth of expenses. However, Brandon King, who leads Personal Investor Cash, Vanguard , wants you to get even more granular by breaking your savings into multiple tiers to act as financial shock absorbers against the loss of regular income.

King wants you to set up a fund to cover what he calls “spending shock” — the unexpected expenses that arise even when you’re being careful. This fund should include at least $2,000 or half a month’s household expenses, whichever is greater.

He further suggests setting up an "income disruption" layer, providing a robust economic cushion sufficient for covering between three to six months worth of everyday costs.

It's crucial to allocate funds for short-term objectives like vacations, home improvements, or saving up for a house deposit, ensuring these aspirations aren't delayed should you face unemployment.

King stated that by depositing these funds into a high-interest savings account or high-interest cash management account instead of a conventional bank savings or checking account, you can accumulate interest and increase your savings, thereby building a more substantial financial cushion.

Set Up Recurring Deposits

To assist you in steadily growing your savings, King recommends arranging for modest, automatic transfers from your salary directly into your savings account. This approach guarantees that funds will be allocated as intended, even if you overlook doing so yourself. Additionally, it compels you to manage within a reduced budget.

“He suggested looking for methods to reduce your spending so as to gradually boost that regular contribution over time. Furthermore, find other forms of one-time income such as tax refunds to accelerate your savings and kick-start the process.”

Explore Options to Boost Your Earnings

One of the most terrifying elements of facing possible unemployment is the ambiguity it brings. This is precisely why Jen Reid, a financial advisor and the creator of Base wants you to concentrate on aspects within your control, such as cultivating an additional job or exploring other revenue sources.

Read Next: 5 Financial Moves That Many Overlook — and It's Hurting Their Wallets

She suggested beginning with an exploration of possible extra revenue streams. These could involve taking up a part-time job, doing freelancing tasks, or engaging in contractual projects. Additionally, it’s prudent to start getting ready for future employment searches right away. Revise your CV, enhance your LinkedIn presence, and hone your interviewing abilities so you can respond promptly when necessary.

More From WellnessInvestigator

• 7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
• I'm a Realtor: This Is Why No One Wants To See Your Home
• How Middle-Class Workers Are Secretly Turning Into Millionaires — and You Can Do It Too
• Elon Musk's Wealth: A Comparison with Your Potential Lifelong Income

The piece initially appeared on WellnessInvestigator : I'm a Financial Advisor: 3 Steps to Take Immediately If You're Concerned About Your Employment Stability

Share this post