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Employees across industries are feeling increasingly insecure about their jobs. One in three American workers say they have layoff anxiety and one in four say they feel insecure in their job, according to a recent study.In recent weeks, tens of thousands of U.S. government workers have been fired, and federal agencies are expected to lay off thousands more. For now, its unclear whether federal job cuts will have a ripple effect on the private sector, particularly on firms that rely on government contracts. U.S. tariffs can also have an impact on the job market.Workers who are worried about losing their jobs may want to take steps to shore up their finances. Recent surveys find that many Americans dont have much saved for a rainy day. Nearly half (43%) of Americans say they would need to borrow money to pay for an unexpected expense, such as $1,000 bill for an emergency room visit or car repair, according to Bankrates Emergency Savings Report. In addition, 13% of Americans have no savings, according to the Clarify Capital study.If youre concerned about losing your job, make a list of every nonnegotiable monthly expense, suggests Bobbi Rebell, personal finance expert at BadCredit.org. For example, list how much you pay for housing, your phone bill, electricity, and food. Add those up and then compare that amount to whats in your emergency fund and figure out how much runway you have to live on with only that money, she says. If youre coming up short, here are five financial moves to make now to prepare for a layoff.While youre still working, live as if you lost your jobCommit to only spending money on essentials, even though you are still getting a paycheck, and put the extra money into your emergency fund. There are a lot of things that we dont consider discretionary that very much are discretionary, Rebell says, listing expenses like buying new clothes, going out to dinner, or happy hour with friends.Rather than treating yourself to a new dress, treat yourself to more money in your emergency fund, Rebell says.Practice politely declining invitations, Rebell says. For instance, if youre invited to a fancy birthday dinner and you dont want to chip in for drinks, dinner, and a gift, just tell the host that you cant make it, you dont need to give an excuse, Rebell says.Cut back on retirement savingsThere is no question that saving for retirement is important, however financial experts caution that if youre looking at potentially being unemployed for six months, nine months, or even a year, the funds youre putting into your employer-sponsored retirement fund might be more useful in your bank account.If youre worried about losing your job, you might want to prioritize current cash flow over retirement plan savings and temporarily scale back on your 401k contributions so you have more available income, says Tracey Spivey, partner and private enterprise lead at KPMG, a global professional services firm that specializes in audit, tax, and advisory services.Rebell agrees that if youre facing a potential layoff, you might not want to have all your savings in a retirement fund. However, she says, make sure you are still putting enough money into your 401(k) to get the employer match.Keep in mind if youre 55 or older and you are fired or laid off, the IRS does allow you to access your 401(k) without paying the 10% penalty. However, Rebell says, you will need to pay taxes on any 401(k) money you access, and any funds used now obviously wont be available when you retire.Audit subscription servicesOne of the easiest ways to find extra money is by auditing subscription services, says Said Israilov, a financial planner and wealth manager at Israilov Financial in San Francisco. We frequently uncover $80$100 in monthly subscription costs that provide no to minimal value, he says.Categories to look at include:Trial subscriptions that have been converted to paid plans. This can include mobile games and streaming services.Redundant music and video streaming services. Typically, its more expensive for family members to have individual accounts rather than subscribing to one account and paying for multiple users.Annual subscriptions that auto-renew. This could include mediation or diet apps as well as software subscriptions.Expensive gym and fitness memberships. Consider replacing the cost of high-end gym membership with a low-cost membership to a community recreation center.Consider replacing all your entertainment subscription services with a free library card, at least temporarily, says Erika Kullberg, an attorney and personal finance expert and host of the podcast Erika Taught Me. Most libraries offer newsletters, magazines, audiobooks, and even games and movies. Remember, these cuts are temporary, so see what you can do to save money now, so you have some extra cushion in the event a job loss does transpire, she says.Negotiate a better rateLower your bills by calling your insurance, internet, and utility providers and asking whether you can save money by changing the plan youre currently on.Insurance bills often present opportunities for savings, Israilov says. Ask about bundling discounts and usage-based insurance programs for low-mileage drivers, if you drive less than 625 miles a month, he says.If you do lose your job and you owe money on a mortgage, car loan, or credit card, call the financial institution that holds that debt and ask about forbearance, says Derik Farrar, head of personal deposits at U.S. Bank. Your lender may offer a reduction or pause in payment during a temporary hardship like being laid off, he said. In addition, ask about ways to lower your interest rate, he says.Consider selling high-value itemsWe all have items we no longer use. Take inventory of your possessions to determine if you still use them and whether others might value them. Rebell recommends selling gold jewelry that doesnt have sentimental value, designer handbags, and designer clothes you no longer use. However, if you plan to sell these items through ThredUp or The RealReal be aware that some websites take a percentage of the sale, which could eat into your profits. Consider selling your items at a local consignment shop to avoid fees, she says.Some of these lifestyle changes will hurt more than others. While you can go back to your normal spending and saving habits when you are employed again, some degree of frugality is usually a good idea.
