IN A WORLD OF CORPORATE LAYOFFS AND INFLATION | 401K + HYSA Are Your Friends | Chats with Sarah
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- Опубликовано: 11 июл 2024
- IN A WORLD OF CORPORATE LAYOFFS AND INFLATION | 401K + HYSA Are Your Friends | Chats with Sarah
Another week, another chat! Goodness! These are so fun for me to film and create!
So, right now, we’re seeing a lot of layoffs. Layoffs generally are a reason to consider that the economy is bad. Which we already know. They are a bigger indicator of a recession.
A lot of it has to do with economic slowdown and restructuring plans.
*Preparing for Layoffs/Job Loss*
The warning I have to people who are working right now people who are in college and getting ready to start working, or people in high school are looking for job. You have to be prepared to be laid off at any point in time. So it’s important to kind of have some plan in place for that day. it’s kind of living in fear, but it’s really not at the same time.
The most important thing to know is that you will always land on your feet no matter what.
1. *Emergency Fund:* Build or bolster your emergency fund to cover living expenses for several months. This provides a financial cushion during the transition period. 3 months' worth of your current income.
2. *Update Resume and LinkedIn Profile:* Keep your resume and LinkedIn profile current, highlighting your skills and achievements. This will be valuable when seeking new opportunities. Make one change weekly to keep it up to date.
3. *Skill Enhancement:* Identify and enhance skills that are in demand in your industry. This could involve taking courses, obtaining certifications, or learning new technologies.
4. *Explore Job Market:* Keep an eye on the job market trends in your industry. Understand the demand for your skills and explore potential job opportunities.
*HI-Yield Savings Account & 401K Contributions*
On the subject of saving money and preparing, one way to do this is through a hi-yield savings account and 401k contributions. Now, typically, you won’t be able to touch the money in your 401(k) without penalty. But that is where savings comes in.
Personally, there are two that I use. Now, to be completely honest, none of this high-yield savings mess is going to help you in the event of a layoff. It's just a way to help with what savings you do have multiply.
*Apple Savings* - which the rate just went up to 4.25% for me, which is great.
The benefit of Apple savings is that when you shop with Apple Pay, you actually get 2% back on every single purchase. Unfortunately, Walmart is not a company that supports Apple Pay. But Target and Publix both do. With every purchase you get one percent back, with every store that accepts Apple Pay you get 2% back, and on certain stores you get 3% back.
*Capital One* - Capital One is a bit different for me and how I use it because I actually only contribute about $100 a month towards my Capital One account. I could probably do more, but right now, that is about as much as I’m contributing. When you’re only contributing that much, your gains are not very high, however. This is a major step, and me kind of putting together a fund that can be used at a later time. And because it’s in a different account, I forget about the money that’s there. It’s like hiding money in a shoe but it’s actually working for you and gaining interest.
401k - less taxes - *$14.00*
The only downside is that you do have to pay taxes when you pull the money out. Now, mind you, the money that I’m putting in there is already taxed, but it is what it is. This is my first year contributing to a 401(k) as well as a high savings account. So tax time is going to be interesting for sure and when that time comes, I can definitely share a little bit more more about what I learned from that.
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✩ MUSIC I USE: Epidemic Sound
00:00 Introduction
00:34 Layoffs in Corporate America
01:24 Downsides to Working for Someone Else
02:55 Upsides to Working for Someone Else
03:48 Preparing for Job Losses/Layoffs
05:34 401k + Hi-Yield Savings
10:15 Capital One HYSA
11:26 Not Going to Help if You Face Layoffs
As an avid trader who is deeply invested in the economic performance and FED policies this was a very wise video. You have to create your own stream of income but everyone can’t do that. The 401k is cool but there’s better investments than this if you get more hands on in investing you can do much better than your 401k returns.
I figured that! and honestly as my income grows I will definitely explore this option. This was definitely a way to squeeze just a bit more out of my employer while I can. Thanks for watching!
Working for yourself seems to be the safest option nowadays. What is your long term idea to make money for yourself? RUclips?
I'd like to start a social media marketing business. That is my background. RUclips is hopefully a part of the plan, but again relying on RUclips to make money.... that's still another company..
Don't forget Roth IRA especially being young. tax free growth.
On my goals list for 2024! :)