According to a recent Forbes post titled, Top 9 Investing Trends for 2023, investors should watch out for layoffs stating that “The hashtag of the year on social media could be #layoff. Since mid-November, tens of thousands of employees have been laid off from tech behemoths like Meta, Amazon, Lyft, and Twitter.”

While tech companies seem to be driving much of the layoffs, we have seen other industries affected. They also mention that recent college grads likely won’t have as much of an issue as entry level positions have less of an impact on company’s bottom lines.

What can you do now to prepare? 

1. Reduce unnecessary spending. This can be anything from excessively dining out—it is summer, and everyone loves to be outside more. Check out some galleries or go for long walks to break up constant entertainment. Compare food prices—what you find may surprise you. There is a price to pay for convenience and you could save hundreds simply knowing what store have better prices on certain items. Cut down on outside home expenses by spending more time doing it yourself-gardening, weeding, mowing, etc.
2. Put a little more money aside each week. Consider putting an additional 10% of your paycheck away for good measure. A little bit goes as long way.
3. Don’t spend what you don’t have…use more cash and less credit cards. It’s very tempting to make purchases on your credit cards, especially with points and rewards. But in the end, the interest ads up.
4. Be wary of coupons and deals lead to overspending. Everyone loves a good deal, which typically leads to buying things you don’t need. Try and resist the urge.
5. Unsubscribe from emails from your favorite stores--discounts and tempting offers can create a sense of urgency to make a purchase causing your budget to go out the window.
6. Meet with your advisor regularly for accountability and to stay on course.
7. Education is key. Read up on financial topics and how the market is doing. Don’t leave everything up to your advisor and do not simply follow what everyone else is doing.
8. Keep your portfolio diverse.

Lay-offs are never easy, but being prepared and staying ahead of the game can soften the blow. Always keep networking and building your business contacts in addition to practicing the recommended steps above. If you are looking to review your current plan regardless of if your situation or goals have changed, please contact me directly.

The comments expressed and are for general information and not to be relied upon as financial advice. Please consult legal or tax professionals for specific information regarding your individual situation.