Layoffs don’t end financial stability — these 4 moves kept me solvent each time

Being laid off doesn’t mean your finances have to collapse. After my third layoff in 10 years — this one in fall 2025 at age 33 — I had three months without a steady paycheck. But I didn’t dip into retirement accounts or rack up credit card debt. Instead, I followed a repeatable financial protocol that kept me solvent and in control.

Within days of losing my job, I reviewed my checking and savings balances, examined my severance package, and confirmed my eligibility for unemployment benefits. That gave me a clear picture of incoming funds. I then combed through credit card statements and canceled nonessential subscriptions. With that data, I drafted a lean budget covering rent, student loans, car payments, and other essentials — all calibrated to my reduced cash flow.

To enforce discipline, I kept my checking account balance low and transferred money only as needed. It created a psychological barrier against impulse spending. Most of my severance went into an Ally High-Yield Savings Account, which offers 3.20% APY, no monthly fees, and unlimited withdrawals. That move preserved liquidity while earning more than ten times the interest of a traditional savings account.

I also relaunched a side income stream. Years earlier, I’d become a certified group fitness instructor. After the layoff, I increased my class schedule. The extra income helped, but so did the structure and free workouts — a rare win for finances, physical health, and mental resilience.

I didn’t cut everything. I stayed socially active by hosting dinners instead of dining out and suggesting coffee jogs instead of brunch. When I visited a friend in Los Angeles, I used Chase Sapphire Preferred card points to cover my flight. Staying with her and using points limited the trip’s total cost to $300.

I started my new role as audience development editor at CNBC Select in February — less than four months after the layoff. Since then, I’ve reinstated subscriptions and resumed travel. But I still route leftover money into my HYSA. I’m not operating in survival mode. I’m operating in preparedness mode.