I’d like to continue the series on strategies for folks who get laid off before they are ready to retire.
Adjust your budget: If you were a prudent budgeter throughout your career, you probably have a six-month emergency fund for situations like this, where you get laid off unexpectedly. That’s great, but another precautionary measure is to reassess your expenses. There are certain expenses, like mortgage payments, rent, utility bills, and groceries, that can’t be reduced. However, canceling your next vacation, refraining from dining out, and postponing the kitchen renovation are all actions that can be taken until your financial future is more certain.
I know from firsthand experience working with clients how difficult it may be to put certain items on hold. You may have been planning your home renovation or a certain trip for months or even years. However, if money is a concern, then biting the bullet and delaying these large discretionary outlays is prudent and advisable to keep you on track to achieve your financial goals.