Wondering if the author would consider putting some of the savings into a slightly higher yield savings account. I’ve seen 3.35% and though I’ve got about $2600 in that savings, a few bucks of interest each month is so much more emotionally satisfying than the 3 cents I was making with my primary bank. I’ve got easy transferring capability so if I need that external savings I can send it back to my checking account within 24 hours. Also, I’m trying to budget better and just discovered that my public library app gives me access to hundreds of newspapers, magazines, etc - on demand. It feels like such a great way to keep voraciously consuming entertainment and media without having to spend a cent!
I consume from the library a lot but I believe high-quality journalism is in a crisis. So I am happy to pay for media with journalistic integrity. Every dollar spent is a vote, what are you voting for?
I did this after my layoff last year. I switched from a Bank of America checking + savings combo to a single high-yield cash account with Wealthfront, and it’s a pity I didn’t look into an option like that earlier. For a few months this year, the APY was 5% (it recently went down to 4.25% due to falling interest rates). So much better than a traditional bank. (You do have fewer no-fee ATM options and no checkbook, but I personally find it easy to live without them.)
I’ve been laid off a few times and each experience is a lesson learned and although initially a huge ego burst, I always landed some place better. With great financial health like you have, I am confident you will find opportunities that will grow you in the right direction.
Love the premise and transparency of these breakdowns - thanks! This might not mean much, but according to data from layoffs.fyi there has been a reduction in number of layoffs vs last year (appreciate that’s very tech focussed too).
So hopefully a peak of layoffs has already been hit and it’ll get smoother for folks from here on in 🤞
Yes, I hope so! I think one struggle that people face—especially in higher-level roles—is that it’s often hard to find new jobs w/ comparable pay to the old one.
Off-the-charts anxiety reading this! Having been laid off and then having never found another good FT job, the thought of not working and yet taking trips, going out to eat etc — while having a huge mortgage and a big car expense with big interest rates — makes me feel worried. However, this woman probably has much more marketable skills than mine, which changes the equation.
Yes, I can see that Michelle. Having 8 months of severance changes the math, IMO, but everyone is different! As she mentions, she was actually able to save this year.
And I was triggered while reading this too but I see the caveat here is that she was in a much senior position at an established corporation. I was laid off in 2012 and I didn't find another suitable FT position thereafter. Long-term unemployment isn't discussed as much or, at all in public.
Her severance payouts were equivalent to most people's FT annual salary. And I've never heard of a startup or any business paying a severance to someone that only worked 3 months?! 🤯
She has a nice cushion to work with and I hope she lands on her feet or creates her own agency before that cushion goes away.
That's a great topic. A while ago on Medium a very young woman who lost her job posted a trending story that said something like, "Don't worry. You're going to get another job. You just are!" All the younger folks agreed. Everyone mid-40s and above said, "Well, maybe." A lot of us shared that that was the end for us. You don't think it will happen to you and I'm certain it depends a lot on your field, your skills, etc. I was shocked when I finally had to accept I wasn't, in fact, considered hirable at my age and had to go with freelance work.
As an Australian; I was surprised by the salary expectations (like that’s comparable to Australian dollars in figures; but very high when converted). But the cost of the house seems “so cheap” as a multiplier relative to that salary! In Sydney, a two bedroom free standing house under 1mil is just unheard of!
Not shaming anyone who chooses not to negotiate severance! However, it's always worth a shot. From what I've learned from my partner who is in a leadership role in tech, there's 2 buckets of money the company has for severance. First bucket comes from the calculation $Y for every X years you've worked there or whatever and that's what the company will offer you. Then when you negotiate for more, the money comes from the 2nd bucket of money.
"I'm working on my catastrophizing thoughts, especially about my mortgage."
"I could get a roommate or sell the house"
"I'm nervous about planning trips."
"I'm nervous about needing my emergency funds to cover my expenses."
I am sorry. It sounds painful.
I am also jumping up and down.
Where are the financial planners? The CFPs who could take "Single's" information and structure a path? My God, this is a call for financial help.
My bet is conventional financial planners are reluctant because they are trained primarily around assets. 99% of CFPs don't know how to help "Single" set her best budget because the CFP program offers zero training in economics-based financial planning.
Wondering if the author would consider putting some of the savings into a slightly higher yield savings account. I’ve seen 3.35% and though I’ve got about $2600 in that savings, a few bucks of interest each month is so much more emotionally satisfying than the 3 cents I was making with my primary bank. I’ve got easy transferring capability so if I need that external savings I can send it back to my checking account within 24 hours. Also, I’m trying to budget better and just discovered that my public library app gives me access to hundreds of newspapers, magazines, etc - on demand. It feels like such a great way to keep voraciously consuming entertainment and media without having to spend a cent!
I consume from the library a lot but I believe high-quality journalism is in a crisis. So I am happy to pay for media with journalistic integrity. Every dollar spent is a vote, what are you voting for?
A good suggestion!
I did this after my layoff last year. I switched from a Bank of America checking + savings combo to a single high-yield cash account with Wealthfront, and it’s a pity I didn’t look into an option like that earlier. For a few months this year, the APY was 5% (it recently went down to 4.25% due to falling interest rates). So much better than a traditional bank. (You do have fewer no-fee ATM options and no checkbook, but I personally find it easy to live without them.)
I really appreciate these posts! It’s so important to talk about money, layoffs, and budgets.
I’ve been laid off a few times and each experience is a lesson learned and although initially a huge ego burst, I always landed some place better. With great financial health like you have, I am confident you will find opportunities that will grow you in the right direction.
Love the premise and transparency of these breakdowns - thanks! This might not mean much, but according to data from layoffs.fyi there has been a reduction in number of layoffs vs last year (appreciate that’s very tech focussed too).
So hopefully a peak of layoffs has already been hit and it’ll get smoother for folks from here on in 🤞
Yes, I hope so! I think one struggle that people face—especially in higher-level roles—is that it’s often hard to find new jobs w/ comparable pay to the old one.
🙋🏽 Exactly! Unfortunately I've experienced this.
Yes, I've heard this a lot!.
Wow this was fascinating! Also thanks for the shoutout ♥️
Off-the-charts anxiety reading this! Having been laid off and then having never found another good FT job, the thought of not working and yet taking trips, going out to eat etc — while having a huge mortgage and a big car expense with big interest rates — makes me feel worried. However, this woman probably has much more marketable skills than mine, which changes the equation.
Yes, I can see that Michelle. Having 8 months of severance changes the math, IMO, but everyone is different! As she mentions, she was actually able to save this year.
I'm with you on this one!
And I was triggered while reading this too but I see the caveat here is that she was in a much senior position at an established corporation. I was laid off in 2012 and I didn't find another suitable FT position thereafter. Long-term unemployment isn't discussed as much or, at all in public.
Her severance payouts were equivalent to most people's FT annual salary. And I've never heard of a startup or any business paying a severance to someone that only worked 3 months?! 🤯
She has a nice cushion to work with and I hope she lands on her feet or creates her own agency before that cushion goes away.
Melody, agree that long-term unemployment isn’t discussed enough. I’m sure it’s hard for people to share!
That's a great topic. A while ago on Medium a very young woman who lost her job posted a trending story that said something like, "Don't worry. You're going to get another job. You just are!" All the younger folks agreed. Everyone mid-40s and above said, "Well, maybe." A lot of us shared that that was the end for us. You don't think it will happen to you and I'm certain it depends a lot on your field, your skills, etc. I was shocked when I finally had to accept I wasn't, in fact, considered hirable at my age and had to go with freelance work.
As an Australian; I was surprised by the salary expectations (like that’s comparable to Australian dollars in figures; but very high when converted). But the cost of the house seems “so cheap” as a multiplier relative to that salary! In Sydney, a two bedroom free standing house under 1mil is just unheard of!
Not shaming anyone who chooses not to negotiate severance! However, it's always worth a shot. From what I've learned from my partner who is in a leadership role in tech, there's 2 buckets of money the company has for severance. First bucket comes from the calculation $Y for every X years you've worked there or whatever and that's what the company will offer you. Then when you negotiate for more, the money comes from the 2nd bucket of money.
"I'm working on my catastrophizing thoughts, especially about my mortgage."
"I could get a roommate or sell the house"
"I'm nervous about planning trips."
"I'm nervous about needing my emergency funds to cover my expenses."
I am sorry. It sounds painful.
I am also jumping up and down.
Where are the financial planners? The CFPs who could take "Single's" information and structure a path? My God, this is a call for financial help.
My bet is conventional financial planners are reluctant because they are trained primarily around assets. 99% of CFPs don't know how to help "Single" set her best budget because the CFP program offers zero training in economics-based financial planning.
Loooove this collab you two!