💰Budgeting tips for tech layoffsFeb 07, 2024
Sometimes we all need a reminder that dedication, persistence, and a good support system can help you reach any goal. That’s why the story of ‘The Jones 30’ stole our hearts and takes center stage in this week’s newsletter.
Learn all about how a hopeful group of teachers and counselors scored $1 million, the plight of the tech industry in 2024, our best budgeting tips in case you get laid off, and why building your emergency fund is key to financial security.
IN THE KNOW
In Feel Good News
Ever wondered what it takes to win the lottery? Apparently, it takes 30 people 8 years, if you do it right. Our feel-good money story of the week features The Boone County counselors, administrative staff members, special education teachers, and others who collectively won $1 million from a Powerball ticket, taking home $24,000 each, after taxes.
In 2019, the group, self-named the ‘Jones 30’, gathered to draw their lucky numbers out of a hat and played this permanent set of digits every week since then. Today, members of the group are spending their money on travel, investing, home repairs, and retirement, and have announced that they will continue to carry on the guessing games in hopes of hitting the jackpot again. Seeing their happy faces really made us believe in the power of hope and hard work. Let this be a reminder to us all that with enough dedication, anything is possible!
Speaking of the lottery, what would you do if you won? The answer could tell you everything you need to know about your money journey. Take a shot at questions like these in our brand new Money Quiz and get a step-by-step plan that will help you master your money. Check it out at milansingh.co/money-quiz
In Not So Good News
For the past two years, the tech industry has been going through it. Last year alone, tech companies laid off 260,000 workers regardless of how hard they work, how long they’ve been at the company, or their level of expertise. Rolling layoffs have affected at least one person we know and don’t look like they’re stopping anytime soon.
Companies are blaming “overhiring” during the pandemic and higher interest rates for the cuts but despite stabilizing interest rates, companies like Google, Amazon, Microsoft, Discord, Salesforce, and eBay all laid off more employees in January.
If you or someone you know was recently laid off, it may seem like a scary time. But despite tech layoffs, the U.S. economy added 353,000 jobs in January so not all hope is lost. If you’re in tech, being prepared is key. Learn all about an emergency fund and how to build it in Milan’s Top 15 Hacks at milansingh.co/hacks
What To Do After Getting Laid Off
If you’re in tech and got unexpectedly laid off, your first instinct could be to panic. You may feel vulnerable and unsure of how to manage your finances going forward but experts at Forbes have put together a few budgeting tips that could help you gain a strong foothold until you figure things out. Here are our favorites:
If you’re wondering whether you should immediately begin applying for jobs again, here’s how you can calculate your runway, ie: how you’re going to pay off your household bills and how long the money will last you. First, calculate your total monthly expenses, then calculate your other streams of income, now that your job is out of the picture. Income could include your severance package, passive income, side hustles, or any other liquid cash. Now divide your monthly income by your monthly expenses and you get the number of months you have before you run out of money. This can help you plan your next move, whether it is to apply for another job, start your own business, or just spend a few months traveling cause hey, you deserve it.
To extend your runway by weeks or even months, you can then reevaluate your expenses to figure out any you can cut down on - like multiple streaming subscriptions - and pursue short-term income streams like
- Negotiating a better severance package
- Offering consulting services, even to your (now) ex-employer
- Using up all your company benefits before you leave
The important thing is to take calculated steps, trust the process, and always remember your worth. Wishing you luck and abundance as you journey forward!
MONEY MYTH OF THE DAY
Emergency Funds Are Only for Job Loss
While having a financial safety net is crucial in case of unexpected unemployment, it's not the sole capability of an emergency fund. Life is full of surprises, and emergencies come in various forms – it could be a sudden medical expense, a car breakdown, or even unforeseen home repairs.
So, let's debunk the myth that emergency funds are a one-trick pony. They are your financial sidekick, ready to swoop in and save the day when the unexpected strikes. By having a well-funded emergency fund, you create a financial buffer that empowers you to handle life's curveballs without derailing your entire financial plan.
In essence, an emergency fund is your financial superhero, capable of adapting to different challenges. Don't limit its power to just job loss – it's your all-encompassing guardian against life's unpredictable twists and turns. For an in-depth lesson on building your fund, get your very own customized money plan at milansingh.co/money-quiz
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