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.
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“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.
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?
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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.
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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.
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“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.
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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.
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“Each actionable step contributes to building a solid foundation that protects your finances and enhances your financial security in uncertain times,” she said.
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This article originally appeared on GOBankingRates.com: I’m a Finance Expert: How To Protect Yourself Financially Against Impending Layoffs in 2024
Baker McKenzie today announced that leading project finance lawyer Matthias Schemuth has joined the Firm’s Singapore office* as a Principal and Asia Pacific Co-Head of Projects in its Finance & Projects practice, alongside Partner Jon Ornolffson in Tokyo.
Matthias joins the Firm from DLA Piper, bringing more than 20 years of experience in the energy and infrastructure sectors across Asia Pacific. He advises sponsors, developers, commercial banks, multilateral lending agencies, and export credit agencies on the structuring and financing of large-scale projects. His practice also spans international banking, structured commodity and trade finance, with a strong focus on emerging markets. Matthias has been consistently recognised by Chambers Asia Pacific and Who’s Who Legal as a leading project finance practitioner.
James Huang, Managing Principal of Baker McKenzie Wong & Leow in Singapore, said: “We are excited to welcome Matthias to our team. His expertise and proven record in managing teams will be invaluable as we expand our regional and global finance offerings for clients.”
Emmanuel Hadjidakis, Asia Pacific Chair of Baker McKenzie’s Banking & Finance Practice, commented: “Asia Pacific is seeing strong momentum in infrastructure development, energy transition investments, and cross-border project financing, much of it centred in Singapore. Having Matthias on board will further enhance our ability to help clients seize opportunities in the region’s evolving energy and infrastructure markets.”
Steven Sieker, Baker McKenzie’s Asia Chief Executive, added: “Matthias’s appointment underscores Baker McKenzie’s continued commitment to investing in exceptional talent across key markets to support our clients in navigating today’s increasingly complex business and regulatory environment.”
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Matthias said: “I’m thrilled to join Baker McKenzie and contribute to its strong growth in Asia Pacific. The Firm’s global reach and local depth provide an unparalleled platform for delivering innovative projects and financing solutions to clients in this dynamic region.”
With more than 2,700 deal practitioners in more than 40 jurisdictions, Baker McKenzie is a transactional powerhouse. The Firm excels in complex, cross-border transactions; over 65% of our deals are multijurisdictional. The teams are a hybrid of ‘local’ and ‘global’, combining money-market sophistication with local excellence. The Firm’s Banking & Finance lawyers are ranked in more jurisdictions than any other firm by Chambers.
Matthias’s hire continues the expansion of Baker McKenzie’s global team. His joining follows the recent arrivals of Carole Turcotte in Toronto; Tom Oslovar in Palo Alto; Jenny Liu in New York and Palo Alto; Helen Johnson, Mark Thompson, Nick Benson, Kevin Heverin, James Wyatt and Michal Berkner in London; Jan Schubert in Frankfurt; Todd Beauchamp and Charles Weinstein in Washington DC; Dan Ouyang, Winfield Lau, and Ke (Ronnie) Li in Beijing, Shanghai, and Hong Kong; and Alexander Stathopoulos in Singapore.
*Baker McKenzie Wong & Leow is the member firm of Baker McKenzie in Singapore
The Federal Reserve gave investors an early Christmas present by lowering interest rates by 25 basis points (i.e., 0.25%) marking its third rate cut this year. In the past, a change like this in the “long end” of the interest rate yield curve has triggered a predictable, investable pattern. Typically, this pattern would be bearish for finance stocks, particularly banks—investors would buy bank stocks when rates rose and sell them as rates fell….
Dozens of protesters from the “Religious Zionist Reservists Forum” and the “Shared Service Forum” demonstrated Saturday evening outside the home of Finance Minister Bezalel Smotrich in Kedumim.
The protesters arrived with a direct and pointed message, centered on a symbolic “draft order,” calling on Smotrich to “enlist” on behalf of the State of Israel and oppose what they termed the “sham law” being advanced by MK Boaz Bismuth and the Knesset’s haredi parties.
Among the protesters in Kedumim were the parents of Sergeant First Class (res.) Amichai Oster, who fell in battle in Gaza. Amichai grew up in Karnei Shomron and studied at the Shavei Hevron yeshiva.
Protesters held signs reading: “Smotrich, enlist for us,” along with the symbolic “draft order,” calling on him to “enlist for the sake of the State’s security and to save the people’s army – stand against the bill proposed by Bismuth and the haredim!”
Parallel demonstrations were held outside the homes of MK Ohad Tal in Efrat and MK Michal Woldiger in Givat Shmuel.
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Representatives of the “Shared Service Forum” said: “We are members of the public that contributes the most, and we came here to say: Bezalel, without enlistment there will be no victory and no security. Do not abandon our values for the sake of the coalition. The exemption law is a strategic threat, and you bear the responsibility to stop it and lead a real, fair draft plan for a country in which we are all partners. It’s in your hands.”
