Dave Ramsey: 43% of Workers Fear Losing Their Jobs — How To Prepare if You’re Worried
Written by
Laura Bogart
Edited by
Kristen Mae
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies 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 products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
A job is rarely just a job. It’s a source of pride, routine, and often identity. At the very least, it provides the income you need to survive. Though many Americans are no stranger to a side hustle (or two), they often rely on one steady “day job” to keep them afloat. So, it makes sense that the thought of losing that job could cause immeasurable anxiety.
According to an article from Dave Ramsey’s Ramsey Solutions, nearly half of American workers — 43% — expressed concern about losing their jobs. Blue-collar and white-collar workers alike were relatively evenly split in their concerns, at 45% vs. 43% — in no small part because many industries don’t feel as safe as they used to.
However, in true Ramsey fashion, he’s encouraging everyone to buck up and face the challenge head-on by creating a plan in case they end up on the unfortunate end of a layoff. If you’re a member of that 43%, here’s his advice for how to prepare for a potential job loss.
Have an Emergency Fund in Place
Job losses are precisely the kinds of emergencies that you should anticipate while building your emergency fund. Creating a robust emergency fund is a cornerstone of Ramsey’s famous “Baby Steps” method.
While you’re feeling relatively secure in your job, prioritize saving $1,000 in an emergency fund as a first step. From there, focus on paying off debt using the debt snowball method (except for your mortgage). Afterward, get really focused — we’re talkin’ eyes on the prize — about saving three to six months of expenses in an emergency fund before moving on to other goals.
But what if you suddenly find your industry or company in the headlines — and not in a good way? You temporarily shift your focus to saving everything you can, making minimum payments while boosting your emergency fund as much as possible.
Start Budgeting Your Severance Pay
Severance is more than a hit show on Apple TV — it’s part of your survival plan if you’re laid off. While you might not know exactly how much you’d receive, remember that every dollar counts. Prioritize essentials like food, rent, and other baseline necessities rather than splurging on a pick-me-up vacation or shopping spree.
Sometimes, you can ballpark your severance based on industry standards, such as one or two weeks of salary for every year worked at the company. This estimate can give you a sense of where to allocate that money until you’re back on your feet.
Save Key Documents From Your HR File
No, you’re not making like Ethan Hunt from the “Mission: Impossible” series, grabbing super-secret elite documents. You’re pulling records from your own HR file: W-2 forms, pay stubs and insurance details. These documents are crucial if you need to file for unemployment benefits or switch to a temporary insurance plan.
Document Your Skills and Your Wins
It’s easy to take a job loss — even one that’s part of broader layoffs — as a personal failure. You’ve got to shake off that mindset immediately. Move forward into your job search with your head held high, shoulders squared, and confidence intact.
While you’re still employed, update your resume and refresh your contacts list. Track your professional accomplishments and wins in the role — no success is too small. Make a list of records you’ve broken, goals you’ve achieved, or awards you’ve won.
These achievements boost more than your resume; they remind you of how awesome you are and how any organization would be fortunate to have you.
More From GOBankingRates
