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<v Speaker 1>Let's say good morning too. The host of How to

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<v Speaker 1>Money Sunday's noon to two on KFI, it's Joel lars Guard. Joel.

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<v Speaker 1>I just mentioned that federal employees could be losing their jobs,

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<v Speaker 1>and with a lot of federal layoffs kind of looming,

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<v Speaker 1>and of course there's always private laoff. Starbucks just announced

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<v Speaker 1>they're cutting like fifteen percent of their corporate workforce. We

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<v Speaker 1>need to talk about how to get ready for a

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<v Speaker 1>potential layoff.

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<v Speaker 2>Yes, yes, we do. And yet that is that's been

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<v Speaker 2>one of those one of those things that's always true,

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<v Speaker 2>is that every individual you could be laid off, especially

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<v Speaker 2>like if you're working for the man, right if you

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<v Speaker 2>don't run your own business, like you work at the

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<v Speaker 2>pleasure of the business that you work for. And we're

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<v Speaker 2>seeing this in particular with like what DOGE is doing

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<v Speaker 2>with the federal government. This I'm really sad about what's

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<v Speaker 2>happening for a lot of individuals who are on the

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<v Speaker 2>federal payroll and DOGE seems to be cutting indiscriminately. And

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<v Speaker 2>even people I think who who think that there's room

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<v Speaker 2>to cut ending in the government, they might not love

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<v Speaker 2>the way though is going about this. But where I'm sitting.

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<v Speaker 2>I think it's really important to highlight how you need

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<v Speaker 2>to be prepared for a layoff, whether you're a federal

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<v Speaker 2>worker or not, because, yeah, if you're working at Starbucks Corporator,

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<v Speaker 2>wherever you're working, there's always a chance, right that the

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<v Speaker 2>that there's an economic downturn of the experience, or even

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<v Speaker 2>if there's a personal downturn in your life, or there's

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<v Speaker 2>an industry downturn in that you know, in your particular

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<v Speaker 2>section of the workforce, and it's important to be prepared

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<v Speaker 2>that you might not have your job, you know, weeks

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<v Speaker 2>or months from now. And that's why for me, like

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<v Speaker 2>the biggest piece of advice I can offer to people

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<v Speaker 2>is to increase your savings rate and to try to

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<v Speaker 2>get up to having that three to six months worth

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<v Speaker 2>of living expenses in a bank account that is ultimately

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<v Speaker 2>your essentially short term insurance against some sort of potential

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<v Speaker 2>layoff that might be coming down the pike.

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<v Speaker 1>Okay, three to six months, and you want that sitting

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<v Speaker 1>in a savings account, not in a place where you

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<v Speaker 1>can't get to it.

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<v Speaker 2>Right or got Yeah, it's got to be liquid, it's

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<v Speaker 2>got to be accessible. If you're sticking I literally had

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<v Speaker 2>a question from a listener recently. She's crushing it on

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<v Speaker 2>the investing side, maxing out like a four toroh one k,

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<v Speaker 2>which is a ton of money to be investing every month.

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<v Speaker 2>But then on the flip side, she's like, I don't

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<v Speaker 2>have any money in savings, and I don't want that

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<v Speaker 2>to be the case you. I love the idea of

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<v Speaker 2>investing for your future, obviously, but I don't want you

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<v Speaker 2>to do it at the complete expense of having liquid

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<v Speaker 2>funds accessible. And so what that means for most people

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<v Speaker 2>is to have like at least twenty five hundred bucks

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<v Speaker 2>in savings. That's the initial amount I want you to

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<v Speaker 2>secure because that's going to get you through most bumps

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<v Speaker 2>in the road, and then you can start taking advantage

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<v Speaker 2>of let's say, like the match in your four O

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<v Speaker 2>on K, while you're also building up that emergency fund

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<v Speaker 2>to be a bigger amount. But ultimately that emergency fund, yeah,

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<v Speaker 2>is going to be a big help if you do

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<v Speaker 2>lose your job. It's going to provide you the ability

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<v Speaker 2>to keep the roof over your head and to keep

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<v Speaker 2>food on the table. And something else I talk about

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<v Speaker 2>pretty frequently is something called a bare bones budget, and

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<v Speaker 2>I want people to institute one of those as well.

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<v Speaker 2>We've got an article about it on howto money dot

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<v Speaker 2>com if people want to know all the details. But

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<v Speaker 2>essentially it's like, hey, how much can I cut if

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<v Speaker 2>the stuff were to hit the fan?

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<v Speaker 1>Right?

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<v Speaker 2>Like, if I did lose my job, how much could

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<v Speaker 2>I cut back on my monthly spending. I'm not asking

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<v Speaker 2>people to go bear bones budget while they've still got

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<v Speaker 2>money flowing in, but it's a good idea to at

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<v Speaker 2>least be prepared for that and to say, listen, I've

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<v Speaker 2>thought through this. If I were to lose my job,

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<v Speaker 2>I can cut back my monthly spending from forty eight

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<v Speaker 2>hundred dollars a month down to thirty three hundred dollars

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<v Speaker 2>a month, and that would give my emergency fund an

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<v Speaker 2>extra month and a half or two months to me

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<v Speaker 2>to keep me solvent. So I think that barbones budget

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<v Speaker 2>is another thing, and I love for people to actually

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<v Speaker 2>create it before something like a job loss occurs, that

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<v Speaker 2>you kind of have that confidence if it does.

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<v Speaker 1>Come about, Yeah, so create it now and then set

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<v Speaker 1>it aside for in case you need it so you

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<v Speaker 1>don't have to expect. We don't have to do it now.

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<v Speaker 1>So I can keep my Burke Williams membership for another

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<v Speaker 1>couple of months at least.

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<v Speaker 2>Right, But it's nice to know, oh, hey, if I

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<v Speaker 2>lose my that's that's gone, right, Or the eating out

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<v Speaker 2>is gone for the time being, or some of these

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<v Speaker 2>subscriptions that they're gone. Like you can't necessarily get rid

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<v Speaker 2>of a car payment overnight, right, but that's something you

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<v Speaker 2>can you can kind of have your eyes looking forward

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<v Speaker 2>to that. But there are other things that you can

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<v Speaker 2>cut immediately. And yeah, it's stinks you're going to miss

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<v Speaker 2>that thing, but the whole goal is to make sure

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<v Speaker 2>that you have enough money for the things that are

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<v Speaker 2>that are crucial.

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<v Speaker 1>Yeah, such great advice from our buddy Joel Larsgard, who

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<v Speaker 1>you can listen to every Sunday on how to Money

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<v Speaker 1>noon to two right here on KFI. You can also

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<v Speaker 1>follow Joel at how to Money Joel and I want

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<v Speaker 1>to check out your bare bones budget at howtomoney dot com.

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<v Speaker 1>Thank you, Joel.

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<v Speaker 2>Thanks Amy,