Written by Chris Taylor
NEW YORK (Reuters) – Despite a bullish U.S. stock market and a strong economy, workers laid off in mass layoffs are struggling to get back on their feet.
Recent layoffs include 13% of employees at online retailer Wayfair, 20% at toy maker Hasbro, 17% at digital music provider Spotify and 35% at live streaming platform Twitch.
In her new book, Bounce Back, money coach Lynette Khalfani-Cox deals with downsizing and other life-changing issues such as debt, disability, the death of a loved one, and unexpected disaster.
“I've been through almost all of these situations myself, so telling my story was like breaking a dam,” said the best-selling author.
Resilience, an essential quality for success, grows from challenges like these, whether we are emotionally exhausted by a pandemic, lonely and isolated, or struggling to survive without savings. can do.
Here are some tips to help you bounce back faster from adversity.
Think beyond finance
First, be kind to yourself, says the first two chapters of the book, reminding you that money is important, but resilience is even more fundamental.
“People are more resilient when they're healthy, eating right, sleeping right, and exercising,” Kulfani-Cox says. “Such a clear state of mind helps you make better financial choices. If you don't take care of yourself, nothing else matters. You'll default to making the wrong choices.” It’s from.”
Let's stress test your life
After the 2007-2008 financial crisis, major banks placed greater emphasis on “stress testing” their balance sheets. What will you do if the worst happens?
Individuals should do the same, Khalfani-Cox said. “Be the chief financial officer of your own world. If you or your partner lose your job, how will the rent or mortgage be paid? How will childcare be covered?” Can you live on just one income?
Start planning now, she advised, noting that few people have a strategy for such a scenario.
Build a social network
Gilded Age novelist Horatio Alger wrote penniless-to-riches stories that became the archetype of American success, about pulling oneself up the social ladder. The reality is that we all need others, especially during difficult times. It helps to establish a deep and wide social network.
“It doesn't matter if you were fired from your job or forced to flee your home because of flooding,” Kulfani-Cox said. “Having people in your life can make a world of difference. Having the right people in your corner helps your ability to bounce back faster.”
work on your nest egg
Emergency savings are your first line of defense against all life's shocks. Without it, divorce, illness, damaged credit, and the other “dreaded D's” cited in Khalfani-Cox's book can cascade into bad financial moves because there are no other options. there is.
“Many Americans don't have $400 saved up for emergencies, so if something goes wrong, they have to rely on plastic,” she says. “Then you just dig yourself deeper and deeper. That's why adding a little bit to your coffers is so helpful.”
don't do it alone
Kulfani-Cox says it's a mistake to try to be a “financial Hercules” on your own. Therapists, financial planners, and debt management counselors are experts who can save you valuable time and money.
Explore federal, state, and local programs that support education, health care, and the social safety net.
“It's important to give people the ability to be resilient,” she said, citing such programs. “It's not just an individual effort.”
(Editing by Lauren Young and Richard Chan)
