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
Consumer confidence has plunged among traditionally optimistic younger adults amid fears for their personal finances and the wider economy, figures show.
GfK’s long-running Consumer Confidence Index remained unchanged at an overall score of minus 23 in June.
However, the analyst said this was was “misleading as, beneath the surface, there are new signs that confidence is weakening”.
Source: GfK
Neil Bellamy, consumer insights director at GfK, said: “The biggest fall this month is among those aged 16 to 29, traditionally one of the most optimistic groups.
“Here confidence has dropped 11 points over the past month to minus two, the lowest level seen for two years, driven by large falls in views on both their own personal finances and the wider economy.
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“More broadly, there are now no demographic groups with a positive confidence score, including higher-income households earning £50,000 or more, who have slipped back into negative territory as of June.
“Confidence remains subdued and vulnerable to further economic or political uncertainty.”
Sourve: GfK
Overall, confidence in personal finances over the coming year remained flat at minus two, four points lower than this time last year.
The measures of both personal finances and the economy over the previous 12 months were both slightly down, by two points and three points respectively, “reflecting the sense that things have been extremely tough over the last year for so many”, GfK said.
The only measure to increase was expectations for the wider economy over the next 12 months, up two points to minus 36 but still eight points below this time last year.
The major purchase index, an indicator of confidence in buying big ticket items, remained at minus 20, four points lower than June last year.
“Ships of the World, start your engines. Let the oil flow!” said Donald Trump on social media after he announced the signing of an interim peace deal with Iran on Sunday. Under the agreement – which Iran acknowledged included a 60-day negotiating period for a final deal – the president said that following retrieval of mines, there would be a “toll free opening” of the Strait of Hormuz.
But many of the finer details remain “unclear”, said The Guardian. There are questions over the “exact timing of the reopening of the maritime route, who will oversee safe passage and whether any conditions will be applied”.
Financial markets have welcomed the announcement, but further volatility could yet hit people’s pockets.
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Have oil prices changed?
The price of oil fell to about $83 (£62) per barrel following Sunday’s announcement, its “lowest since the early days of the war”. Then on Tuesday it dipped below $80. In February, before the first missiles struck Iran, each barrel cost around $73. The price peaked at around $120 at the height of the conflict.
Prices are expected to fall in the wake of a prolonged ceasefire, and there are “real grounds for optimism”, said Politico. Damage to oil-specific infrastructure has been “limited”, meaning it could take “as little as six weeks to resume outflows”.
“So that’s the energy crisis sorted, right?” Not so fast.” A combination of damage to wider infrastructure and the continued closure of the Strait of Hormuz has meant roughly 12 million fewer barrels of oil have been produced each day. And they “won’t magically reappear on the market even if the pact holds”.
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Will this continue?
The “first big test” of the deal will be whether shipping companies will have enough “confidence” to return the use of the strait to pre-war levels, said The New York Times. If successful, this will free the 250 tankers and 330 cargo ships trapped in the Gulf, according to the BBC, and transport oil around the world. Oil and gas producers in the Gulf nations would then need to re-establish “wells, refineries and other infrastructure”.
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Even if all of that were to materialise, European and Asian countries who have historically depended on oil from the region “will face a long wait”. Processing oil takes considerable time. “It is unlikely that the prices of gasoline, diesel and other fuels will return to pre-war levels anytime soon.”
What about inflation?
Despite air fares “surging” and fuel costs “tipping higher”, UK inflation remained at 2.8% in May, said The Independent. This was a “surprise” to economists, who had widely predicted a rise to 3% and “perhaps even beyond” due in part to the war in Iran.
Remaining at this level could imply that the “cost-of-living squeeze will not play out as badly as had been anticipated” earlier this year, even if the “Iran war sent energy costs spiralling”. However, prices are set to rise again later in 2026, leaving savers to make sure their investments are earning an interest rate “well above the rate of inflation”.
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What does this mean for consumers?
Food prices in the UK look to be rising more slowly. Should the Strait of Hormuz open freely, fertiliser, which has “soared in costs” and put pressure on farmers, could fall substantially, said the BBC. Jet fuel has already seen a “small fall in price”, with Northwest Europe jet fuel trading at $1,033 (£780) per tonne, compared with $831 pre-conflict and around $1,840 at its peak.
How will businesses be affected?
Beneath the “encouraging headlines” about inflation control, there is a “hidden crisis for businesses”, said The Telegraph. The Iran war triggered one of the largest energy shocks in history, meaning businesses were “swallowing soaring costs to spare shoppers”.
“Input rises” for producers climbed by “8.7% year on year in May”, larger than the 7.9% in April and the highest in more than three years. On the bright side, this means the economy may avoid a dreaded “wage-price spiral”, but conversely lower margins could lead to increased pressure on the employment market.
Hong Kong graduates believe the city’s finance industry is its most attractive and stable sector, making them more optimistic about career opportunities than their global peers, according to a study by the CFA Institute, which trains investment managers.
The US-based institute’s “2026 Graduate Outlook Survey”, released on Wednesday, found that 71 per cent of Hong Kong graduates rated their career prospects between eight and 10 out of 10. The global average for that level of optimism was 59 per cent.
The graduates’ view of careers in finance reflected “both the sector’s resilience and Hong Kong’s continued strength as an international financial centre, which ranks third worldwide and first in Asia-Pacific”, the institute said in a statement.
The findings also indicated that young people were confident about Hong Kong’s role as an international financial centre, resilient amid global uncertainties, and strategically focused on improving skills, it said.
That confidence was “deeply grounded”, it said, with nearly 90 per cent believing they had the skills to succeed and clearly understood what employers were looking for, notwithstanding the wider adoption of artificial intelligence in the city.
“Rather than viewing AI as a threat, 38 per cent of Hong Kong graduates believe it has no negative impact on their job hunting, and 37 per cent believe it makes securing a job easier,” the institute said. “Three quarters are already actively using AI tools in their job applications, demonstrating a proactive, tool-first mindset.”
