2 Things You Need to Know About Your Money If You Get Laid Off

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  • More than 67,000 tech workers have been laid off so far this year.
  • If you’ve been laid off, take a look at your last three months of employment to see where you need to cut back.
  • Then, divide your layoff by six months to give yourself enough room to find a new job.

In the technology sector alone, 67,000 workers will be out of a job by 2022. And there could be more layoffs in many sectors if we end up in a recession.

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If you’ve just been laid off, or if you’re worried about getting fired, former financial advisor Humphrey Yang has some advice, as he shares personal finance tips with his TikTok followers. 3.3 million.

First, know exactly how much you spend each month

Yang says tracking your monthly expenses is the first step.

“You really want to look at your spending for the past three months and get an average; then you can figure out where you can cut back on certain areas going forward, especially if you don’t know if you’re going to have a stable income or not.” .”

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Your spending habits will have to change when you don’t have a permanent income, says Yang. Getting clear on how you spend your money, what you want to give up, and areas to cut in your budget moving forward lays the foundation for the next step.

Find out how long the laundry detergent package will last

A severance package is a severance package or benefits an employee is given when they are fired from their job.

For example, when Meta laid off 11,000 workers last week, the company promised 16 weeks of pay, plus six months of health insurance, according to CEO Mark Zuckerberg’s letter to his employees.

When calculating how long your vacation package will last, Yang recommends estimating that it will take you at least six months to find a new job, just to be on the safe side.

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“Ideally, you get a job before six months, but pretend you’re going to be unemployed for anywhere between six and 12 months and model those scenarios,” he said. .

Using the Meta scenario, an employee could receive $5,000 per month, for example, for four months of the salary payments promised by Zuckerberg in his letter. Yang recommends dividing the $20,000 total over six months, which means you have about $3,333 a month until you find your next job.

Then, review your average monthly expenses (from the first step) and see where your expenses and expenses are to meet your temporary budget.


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