Managing Financial Stress Amid Layoffs

If you’re feeling less than confident about your finances, you’re not the only one. A recent CNBC survey found that 74 percent of U.S. employees said that they are currently experiencing financial stress.¹

And with labor market volatility, it can be more challenging to navigate personal finances. Here are strategies to help you manage your stress and control what you can.

If You’re Anxious About Losing Your Job…

If you’re worried about layoffs, you’re not alone. According to a survey by MarketWatch, approximately 70 percent of U.S. workers are preparing for potential layoffs, with 40 percent focused on saving up and 32 percent regularly browsing job listings.²  The sense of uncertainty that comes with a lack of job security may leave you feeling a loss of control over your financial and professional future. This worry might make you cautious about how you show up at work, make it challenging to focus on the job at hand and potentially affect your mental well-being. 

… Put Your Worries to Work

While your anxieties are understandable, harnessing those concerns into actionable steps can be beneficial—and productive. It may be useful to proactively create a plan for yourself so you know what your next steps would be in the event of a career transition.

Consider asking questions like:

• Do I have an emergency fund on hand, and how long would it last?

 

• Are there discretionary expenses I could easily cut from my current budget?

 

• What would I do with my retirement savings?

 

• Who could I reach out to for help?

 

This can feel like a daunting task, but having a contingency plan in place today can help make you feel more in control, no matter what happens tomorrow.

Once you’ve created your action plan, ask yourself if there are any steps that make sense to take now to give yourself a head start, should you need it. You might want to begin reconnecting with people in your network or work on gaining a new skill. Even if your job is safe, it can be comforting to know that you have the flexibility to switch roles should the need or opportunity arise. 

If You Recently Lost Your Job…

Being part of company layoffs can be a stressful experience, one that may impact financial stability and daily structure, contribute to diminished confidence and lead to feelings of a lack of control over the ability to achieve broader financial goals. 

… Control What You Can

Start by grounding yourself with a sense of what’s to come—make sure you know the details of your employment contract and severance agreement. Then, check on the status of the benefits provided by your employer, including your retirement plan, any equity awards you may hold and your health insurance.

This may also be a good time to take small steps forward, such as updating your budget to reflect your current reality or considering filing for unemployment. Know that while this may be a turbulent time, you might create some stability for yourself by breaking things down into more manageable steps. 

The Bottom Line

Alleviating or eliminating financial stress doesn’t happen overnight. Take one step at a time by, for example, completing just one quick financial task like checking the status of your equity awards, or setting aside time to update your resume. Using these methods, you may be able to lessen your financial stress by putting your efforts toward the things you can control.