I’m a Finance Expert: How To Protect Yourself Financially Against Impending Layoffs in 2024

Talking about layoffs is always a stress-provoking conversation. It’s not something you really want to think about — but according to experts, it’s the key that will protect you financially.

Preparing yourself for impending layoffs is the one thing within your control, and the good news is you can take proactive steps today.

GOBankingRates spoke with financial experts Angela Ashley, registered investment advisor and founder and CEO of Unique Investment Advisors , and Dennis Shirshikov, finance expert and head of growth at Summer , to discuss the strategies you should adopt.

Find Out: 12 Ways To Get Ahead of 99% of People Financially According to ChatGPT

Try This: 5 Unusual Ways To Make Extra Money (That Actually Work)

“Protecting your finances in anticipation of a potential layoff involves a combination of proactive steps and strategic planning,” Ashley said. “I regularly advise my clients that preparing for the worst is a savvy approach that pays dividends when life’s inevitabilities arise.”

Read below for more of their insights on how to protect yourself financially against layoffs .

Sponsored: Protect Your Wealth With A Gold IRA. Take advantage of the timeless appeal of gold in a Gold IRA recommended by Sean Hannity.

Build a Robust Emergency Fund

“Ensure you have a cushion to cover essential expenses if you lose your job,” Ashley said. “Setting up an emergency fund is the very first step in preparing a financial plan. It’s vital to take action to save six months’ worth of living expenses in a liquid, easily accessible account like a high-yield savings account or money market fund.”

Read Next: How Much Does the Average Middle-Class Person Have in Savings?

Diversify Your Income Sources

“Reducing your reliance on a single income stream is a key step in achieving financial independence,” Ashley said.

She recommended exploring side gigs, freelancing opportunities or passive income sources, like investments in dividend-paying stocks, rental properties and digital assets.

Invest In Continual Learning

“Making yourself more valuable at your current job can help protect against layoffs,” Shirshikov said. “Invest in learning new skills or certifications relevant to your industry. This not only enhances your job security but also opens up opportunities for career advancement.”

Enhance Your Professional Skills and Network

“Improve your employability and expand your professional network,” Ashley said. “Invest in continuing education or certifications relevant to your field. Attend industry events, webinars and networking functions to connect with peers and potential employers. Update your LinkedIn profile and resume to highlight your skills and accomplishments.”

Review and Optimize Your Budget

“There are a number of helpful budgeting apps available that make budgeting a breeze in today’s modern world. Identify areas where you can reduce expenses and increase savings,” Ashley explained.

She suggested tracking your spending habits to identify nonessential expenses that can be cut.

“Negotiate lower rates for recurring bills such as utilities, insurance or subscriptions. Allocate more funds towards your emergency savings and debt repayment,” she said.

Shirshikov agreed that it’s crucial to review and reduce expenses.

“Conduct a thorough review of your expenses and identify areas where you can cut back,” he explained. “Reducing discretionary spending and unnecessary costs can free up money that can be redirected into savings or investments.”

Protect Your Investments and Retirement Accounts

Ashley also recommended safeguarding your long-term financial goals amid short-term uncertainties.

“Review your investment portfolio for diversification and risk management,” she said. “Consider reallocating assets to safer options like bonds or stable dividend stocks. Avoid making rash decisions driven by short-term market fluctuations.”

Understand Your Severance Package and Benefits

“Don’t overlook any applicable severance options,” Ashley said. “Maximize the benefits and financial support provided by your employer. Familiarize yourself with your company’s severance policies and entitlements. Review health insurance options and understand the timeline for coverage post-employment.”

She equally recommended consulting with a financial advisor or HR professional to clarify any uncertainties.

Maintain Adequate Insurance Coverage

“Protect yourself from unexpected expenses and liabilities,” Ashley said. “Review your health, life and disability insurance policies to ensure they meet your current needs. Consider umbrella liability insurance if you have significant assets or freelance work.”

Similarly, she advocated evaluating the need for unemployment insurance or supplemental coverage where available.

Update Your CV and LinkedIn Profile

“Enhance your resume and LinkedIn profile,” Shirshikov said.

He suggested keeping these updated with your latest achievements and skills.

“Being prepared to quickly apply for new opportunities can give you an edge if you are laid off,” he said.

Stay Informed and Proactive

“Anticipate changes in your industry and job market,” Ashley explained. “Keep up to date with industry trends and economic forecasts. Network with peers and mentors to stay informed about potential job opportunities. Stay proactive in updating your skills and adapting to market demands.”

She noted that by implementing these strategies, you can strengthen your financial resilience and minimize the impact of a potential layoff on your long-term financial goals.

“Each actionable step contributes to building a solid foundation that protects your finances and enhances your financial security in uncertain times,” she said.

This article originally appeared on GOBankingRates.com : I’m a Finance Expert: How To Protect Yourself Financially Against Impending Layoffs in 2024