Thankfully, everyone in our Financial Zen Community has avoided the layoffs so far. (Knock on wood.)
There are many lessons to be learned about personal finance from the business world (even from layoffs).
The lesson I’m getting from the layoffs is that financially responsible businesses always “live within their means”.
Once they’re out of the startup phase and they’re making an actual profit, they protect that profit.
That means if their top line shrinks, they cut expenses.
Similarly, financially responsible adults always live within their means.
And if THEIR top line shrinks, they cut expenses.
It’s simple enough and yet throughout my career, I’ve encountered highly intelligent people who didn’t follow this simple principle.
I’ve watched people get laid off who continue spending as if they were still making $300,000 a year.
If my income is $0, then I need to spend like my income is $0.
(Even if I know it’ll go back to $300,000 sooner than later).
Hopefully, no one reading this will need to make that call.
But if you do, follow big tech’s lead and trim your sails until the storm is over.
