Meta. Uber. Netflix. Peleton. Carvana. Robinhood.
They’re among the companies announcing layoffs and/or hiring freezes.
I’m not an alarmist, but not because I don’t think bad things can happen…
…I’m not an alarmist because if you’re prepared, the bad things can’t really hurt you.
It’s entirely possible that the tech sector goes through a recession that skips everyone else.
Tech has carried the market and the economy since COVID, so you can argue it’s gotten “out over its skis”.
Most of our Financial Zen Members work in tech, which means it’s time to ensure our community is prepared.
#1 Make sure your emergency fund is intact. It should be 6-12 months of living expenses set aside in a high yield savings account.
#2 Talk to your bank about opening a HELOC. A Home Equity Line of Credit is simply a revolving credit line with your home equity as collateral. A lot of banks don’t charge fees to open one and it can serve as a backstop to your backstop (Emergency Fund).
The danger of getting laid off is 1) not collecting a paycheck, and 2) needing tapping your investment portfolio while it’s down for groceries.
NOW is the time to make sure you have enough liquidity to prevent that from happening.
(For those paying attention, you’re not seeing double. I DID recommend this last week too.)
