New York Life | January 6, 2023
With inflation rising significantly throughout 2022, the Federal Reserve’s attempts to control it by raising interest rates have put significant pressure on corporations across the U.S. to cut back on costs.
For many people, this is a big cause for concern, with the threat of layoffs bringing with it more financial worry – on top of the rising cost of living that many are already dealing with.
So, what can you do if you are worried about your own job security – and how can you prepare for any forthcoming change to your financial situation that may result from losing your job?
1. Speak to your employer
A good place to start is having an open and frank conversation with your employer or HR representative. Your company may be open with you about any possible layoffs, and may be able to give you some assurances about the stability of the firm.
2. Do your own research
Not all companies will necessarily be open about any forthcoming cost-cutting or layoffs – so do some research of your own. Take a look in the media for any stories about your company’s performance, or any speculations from analysts on its future. That might help you gauge the firm’s stability.
3. Get your finances in check
If you are worried about a temporary change in finances – perhaps a period of unemployment if you are laid off and can’t immediately find another job – then do some more stringent financial planning. Work out how long your savings might last you, then cut back any unnecessary expenses until you have more security around your job. It’s also a good idea to explore what benefits you might be entitled to before you actually need them – as it could help you access them quicker when you do.
4. Seek financial guidance
There may be ways you can better plan and allocate your spending that you haven’t yet considered. For example, you may be able to change your mortgage terms to reduce your financial expenses. Or you might be able to release money from investments or change how much you are paying elsewhere. A qualified financial professional can help you explore your options – and will have the latest information on the different products in the market.
5. Examine the job market
Just as it might pay to explore financial support and benefits before you actually need them, it could also be useful to see what other jobs are out there in case you might be entering the market in the near future. This will help you identify opportunities should you lose your job – but it could also help you find a more secure role that you may want to apply for immediately.
The threat of layoffs is a worry for any worker, especially one with a family to support. But there are steps you can take to get some help and guidance so you are better prepared should it happen to you. If you would like to start getting your finances in order now and to explore the options available to you, get in touch with one of our financial professionals.
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