/SplashNews.com // /SplashNews.com
Commitment to our readers
The GOBankingRates editorial team is committed to providing you with unbiased reviews and information. We use data-driven methods to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our review methodology for products and services.
20 years
help you get rich
trusted by
millions of readers
Job anxiety is rising across America. Gallup recently conducted a survey among Americans and found that 60% believe unemployment will increase in 2026. Suze Orman told this in a Recent Blog Posts And thankfully, financial experts have advice for the millions of workers who are losing sleep over potential layoffs.
Stop paying attention to economic headlines and start preparing your finances instead.
Reality check on job searches
Most people assume that it takes a few weeks or maybe a few months to find a new job. The figures tell a different story. When the economy is moving normally, it takes an average of five months from start to finish to reach a new state.
That timeline gets worse during a recession. Age also makes it difficult. Workers over 50 consistently take longer to get hired than their younger counterparts. This difference can extend to weeks or months depending on the industry and role.
Orman’s recommendation is clear: Assume that your job search will take longer than you think and plan accordingly.
Check out: 5 Side Hustles That Pay Hundreds Even If You Have Zero Free Time
A bigger emergency fund than you can imagine
Financial advisors typically suggest three to six months of expenses in emergency savings. Orman throws that conventional wisdom out the window. She wants eight to 12 months’ worth of living costs in a savings account.
That number is not arbitrary. Five months covers the average job search and three months’ allowance for unexpected complications. If you’re over 50, that buffer becomes important because your search will likely take longer than the average timeline.
Calculate your real monthly expenses, including rent or mortgage, utilities, groceries, insurance and minimum loan payments. Multiply that number by eight. That’s your target emergency fund.
This amount probably seems impossibly high. Break it into pieces. Save a month’s expenses, then celebrate. Work for two months, then for three months. Progress matters more than perfection.
No one wants to audit expenses
Orman suggested examining every dollar that comes out of your accounts. Not just obvious waste like unused streaming services or a forgotten gym membership. Discover the categories that can’t be compromised.
Your grocery bills, phone plan, Internet service and insurance premiums all have room for reduction. You don’t need a premium cable package or unlimited data plan that costs $20 more per month.
Take the money left over from these deductions and put it straight into emergency savings. Make it automatic so you don’t have to spend it anywhere else. A monthly deductible of $75 equates to $900 a year in your safety net.
health insurance net
COBRA coverage sounds reassuring until you see the bill. Federal law requires employers with 20 or more employees to offer continued health insurance after a layoff. Coverage lasts for 18 months.
Here’s what most people forget: The day you are fired, your employer stops paying its share of the premiums. You become responsible for 100% of the monthly costs. Some employers charge an additional 2% for administrative fees.
That employer-sponsored plan that costs you $200 a month and your company pays the rest? Expect the entire bill to range from $800 to $1,200 monthly, depending on your coverage level and family size.
Orman suggests researching your options before you need one. Find out what your COBRA premium will actually cost by asking HR. Then compare that number to plans available through the Affordable Care Act Marketplace on Healthcare.gov.
What really reduces anxiety
Orman wrote that worry is human but action beats paralysis. Economic uncertainty is huge but you control your savings rate, spending habits and insurance knowledge.
The worst-case scenario becomes less scary when you have saved 10 months of expenses, limited your spending to essentials and have a clear plan in place for health coverage. You can still be fired from your job. This will not ruin you financially.