How Do I Prepare for a Layoff When I'm Already Stretched Thin?

Speaker A00:00:37

The rumor mill at work is spinning. The economy feels shaky, and you're already living paycheck to paycheck.And that weight of a potential layoff can feel like a mountain about to crumble on top of you. But, friend, fear isn't a strategy and panic isn't a plan.Today we're going to talk about how to build a safety net when you feel like you don't even have enough rope to start. And by the way, I want to thank you. Today is our hundred episode of the year, and I so much appreciate you joining me. Hey, friend. Ralph Estep Jr.Here. This is financially Confident Christian, where we break the cycle of financial shame and live in confidence.And today's all about building confidence in a time of anxiety. Today we're going to talk about some practical steps to prepare for income loss when your budget is already tight.Which leads me to today's listener question. Listener wrote this. Ralph, I am consumed by worry about another layoff or income drop. It's all I can think about.Some days I want to prepare and build a margin, but I'm already stretched so thin, I don't know where to start. What's a practical step I can take when I feel completely tapped out?I need to do something to protect myself, but I'm overwhelmed by how little room that I have to work with. I'd be willing to bet a lot of you are feeling that right now. And as I was so happy to get this question, but there is an answer to this.And the answer is preparation. Preparation is the antidote to panic. And even the smallest margin can create a bridge to your next season. Give you an example of this.I've talked about this on the show before. I guess it's been about 30 years ago now. I was the executive vice president of a big credit union not far from where I live.And this credit union served the Chrysler employees assembly plant in Newark, Delaware. And Chrysler decided they were going to retool the entire plant. I mean, they were going to knock this plant to the ground and start over again.And they told the workers, you're going to be out of work for 18 months. Now here I am. The executive of the credit union serves most of these people. So what do we have to do?We had to step up and show these folks how they can prepare for that. And what I learned during that process is exactly what I'm going to share with you on today's show.It wasn't easy, but because we had preparation and a plan, we were able to get people through it here's how you start. Perform a simple survival audit. You got to sit down and identify exactly what your four wall costs are.Maybe saying, Ralph, okay, what are the four walls? Food, utilities, shelter and transportation. Those are the four walls. Food, utilities, shelter and transportation.Because when you know the bare minimum you need to survive, it takes that monster in the closet and puts it on paper where you can manage it. Remember when I was a little kid, I was like, there's a monster in that closet.I remember my mom, I said, how about we take the doors off the closet so I can't see in there? But what I was really doing is I was putting it out there so I could see in there. And that's where you got to start. Know what your four walls are?Second step pause non essential debt payments. If a layoff is imminent, if you know it's coming, there's a saying that says cash is king. That's where you got to live.You might temporarily move to make it only minimum payments. I know that doesn't sound good. You're like, wait a second, Ralph, I'm working on this debt.But listen, you got to do what you got to do based on the time. Allow those lower interest debts to stockpile as much cash as possible. This isn't a forever decision, but it's a defensive hunker down.Here's another great idea and I really encouraged our members at the time to do this. Inventory those hidden assets you've got. Look around your house for things that you can sell or maybe some skills you can monetize immediately.Because when you're stretched in a quick $200 from a Facebook marketplace sale can be the beginning of your in case of emergency fund. Don't overlook those small things. And while you're in this and while you're getting ready for this, update your career insurance.Now this isn't the insurance you go buy from a broker. This is your career insurance, your resume and your network. These are insurance policies to you.Don't wait for that pink slip to update your LinkedIn profile or reach out to some old colleagues. Start that search while you still have the source. I think a lot of people don't think about that one, but always be building that what if scenario.And here's another plan. Cut to the bone. Now it's much easier to cut that cable, those subscriptions, and dining out before the crisis hits.Because every dollar you save now is a dollar that buys you time and peace later. I never said this was going to be easy. This is hard stuff.But Preparation is an act of faith that God will provide the way if you provide the willingness. And that's really what the key takeaway is today. You got to provide the willingness. So here's your win for today.If you've got this on the horizon, if you're feeling this pressure right now, I'm going to encourage you open a separate savings account today and call it your Peace of Mind fund. Even if you don't have this in your idea or what's coming next, I think this is a great idea to have one of these. So create that Peace of Mind Fund.And look, you can start with $25. It's not going to solve the whole problem, but embrace that paralysis of doing nothing.Let's get right to today's Bible verse comes to us from the Gospel of Matthew, chapter 6, verses 25 and 27. This is such an encouraging one. Again, Matthew 6, 25 and 27.Therefore, I tell you, do not worry about your life, what you will eat or drink, or about your body, what you'll wear. Is not life more than food and the body more than clothes? Look at the birds of the air.They don't sow or reap or store in barns, and yet your Heavenly Father feeds them anyway. Are you not much more valuable than they can any of you by worrying at a single hour to your life?You know, when I'm having a hard day, I go to that verse sometimes. It really reassures me and it reminds us of something. We've got to be prudent and prepare. Of course we do. I'm not saying don't do that.But our ultimate security is held by a Father who considers us far more valuable than the birds that he already cares for. And that's. You can just lean on that. Let's pray together. Lord, I pray for the ones whose hands are shaken as they look at their bank account.I ask that you acquire the spirit of fear in their hearts, Lord, and replace it with the spirit of power and of love and of sound mind.Provide them with creative ways to save and unexpected avenues for income, Lord, and remind them that their job is is their current provider, but you're their eternal source. Give them peace in waiting and wisdom in the doing. And we ask this in the precious name of Jesus. Amen. I want to just encourage you, friend.You are stronger than your circumstances because the one who is in you is greater than the world. And if you've got a question for this show, I would love to answer your question. Go to financiallyconfidentchristian.com/questionwe'll put a link in the show notes, but I'm going to give it to you again. It's financiallyconfidentchristian.com/question thank you so much for joining me. Heavy topic today. I know it's not an easy thing, but we had to cover it.Stay financially savvy. May God bless you. And you. Have a great day today.