I remember the first time I was let go from a job. It was devastating. It’s almost like going through a bad breakup. But like most things, the first time is the hardest. With the state of the economy and job market today, it’s almost inevitable that it will happen to you, so you might as well be ready for it.
Most jobs will just walk you out the door on your last day, so the time to prepare is NOW. If you lost your job today, how long could you survive with no paycheck? The answer for most people is not at all. The loss of ONE paycheck would be catastrophic and put you in the position where you have to choose between rent or food.
This is why I preach so HEAVILY to everyone to get your money right! Know your numbers! Pay off debt! Create an emergency savings fund! The key to having ALL of these things starts with a BUDGET. There is no way around it. The only way through it, is to DO IT!
I was recently laid off, and although it is extremely disheartening, it is not heartbreaking because I prepared for this. Here are the money moves I’ve made since losing my job:
- I cancelled all the credit cards I did not use/see value in anymore. I am big on collecting cards for rewards and points, but jobless? It’s not that important anymore. Especially if you are paying a fee for the card.
- I audited my subscriptions and cancelled anything I didn’t NEED or use enough to justify the expense. Eleven dollars when you’re gainfully employed, PEANUTS. When you are not, a waste. Listen to commercials, switch to free apps, save your coins.
- I increased my checking account buffer. Normally my budget lets me keep my checking account close to $0. I know exactly what’s coming in and going out. I have another paycheck coming in two weeks so no big deal. Now? That extra money makes me feel more secure when unexpected expenses come up.
- I now pay my credit card balances in full, as I use it. I try to keep the balance at $0 so I don’t have any unexpected bills. I used to pay at the due date and let the balances grow because I had a paycheck coming. Not anymore, so I don’t play that game now. Funny enough my credit score has gone up STILL.
What I did BEFORE I lost my job:
- I paid off my house in 2023. People thought I was crazy paying off a low-interest rate mortgage, but she who laughs last, laughs best.
- I saved up a large emergency fund. Admittedly it was not with the thought that I would lose my job, but it is now a huge blessing.
- I haven’t had credit card debt in decades. If I can’t afford it, I don’t buy it.
- I do not have a car payment. The last time I made a car payment was around 2017. My most recent car was purchased in CASH.
- I have no student loan debt. I had minimal loans and paid them off a long time ago.
You have to build your cushion while the gettin’ is good. Most people take more vacations, shop more, upgrade their cars or homes when they are making good money. I lived on half and invested like I knew the rains would come.
If you have not already, it’s time to take a hard look at your finances and lifestyle. Decide if you want to YOLO it out, or prepare for that rainy day. I know what I chose. No regerts!
If you need some help getting started, book a free goal setting session with me. I’ll hold your hand (while I yell at you). Calendly – V
