Financial Security in Uncertain Times

In times of economic uncertainty, it is difficult to know how long your current job may last or, in the event of job loss, when you will be able to secure your next position. According to the Bureau of Labor Statistics, as of March 2026, it takes approximately 25 weeks to find a new job after a layoff, and for those in senior positions it may take even longer. However, job stability is just one piece of a broader financial picture. Regardless of economic conditions, you should be certain that you are prepared for what may come. While it’s impossible to plan for every emergency, you can expect to experience at least one financial emergency in a lifetime, which makes preparation essential. 

How to Know You’re Prepared 

Knowing you’re prepared for economic uncertainty can be difficult to determine on your own, but there are a few indicators that can help you evaluate your readiness. For example, consider the following:

Do you have three to six months’ worth of living expenses saved?

Do you have a financial statement drafted? 

Do you have a list of available resources prepared, such as helpful family and/or friends, former employers in good standing, and discounted goods and services?

Building Your Emergency Savings 

When building emergency savings, I advise clients to have at least three months’ worth of living expenses saved. For example, if it costs you approximately $3,000 per month for utilities, rent/mortgage, transportation, and food, then you should have at least $9,000 saved. By aiming for this savings goal, you can be better positioned to withstand a financial emergency without having to rely on credit cards or personal loans. 

Personal Financial Statement 

A personal financial statement is a simple document that accounts for everything that you own (assets) and owe (liabilities). Assets may include your car, home, personal property, investment and savings accounts, and more. Liabilities may include your mortgage, vehicle, personal and/or credit card loans, and so on. By creating this document, you’ll be able to determine whether you are in a good financial position. The equation is as follows: assets minus liabilities equals your net worth. Let’s review the following example: 

John Doe’s Financial Statement 

Assets Home value $200,000 Car value $12,000 Savings Account $9,000 

Liabilities Home loan $120,000 Car loan $5,000 Credit Cards $2,000 

Net worth = $94,000 

In the above example, John Doe has a positive net worth of $94,000, which means he will be able to sell all his current assets to pay off his remaining debts with money remaining. This is a great financial position to be in. Having a net worth greater than 0 gives you the ability to resolve your debts. You can update your financial statement monthly, quarterly, or yearly.   

Resources 

Having a list of available resources is necessary to weather financial emergencies. While your list may include several resources, the following items will prove helpful: 

Identify helpful family or friends who may be able to lend money, offer space for rent, or are well connected to jobs and careers. 

Stay in touch with your former employers in good standing; they may hire you back, refer you to other opportunities they’re aware of, or provide letters of recommendation. 

Discounted goods and services: It may take a few months for your spending habits to change, but you will want to know where you can find similar food or services at a discounted rate, such as food banks, supportive services, and other community resources. 

Public Benefits 

If you find yourself in a position where your money has run out or your savings are not enough to cover your monthly living expenses, then it may be time to consider public benefits such as unemployment insurance and/or the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. These programs can help supplement your income during difficult times and lessen the financial impact of an emergency or sudden job loss.  

By preparing yourself today you can take charge of your financial security and be assured that you are ready for what comes next. This includes building an emergency savings of at least three months, creating a clear financial statement, and understanding the role of available resources. Don’t be afraid or ashamed to seek out public benefits. Not only are they another tool in your toolbox, these are programs you have paid into with each paycheck. Taking these steps together can help create a stronger, more stable financial foundation over time. An Accredited Financial Counselor® can help answer questions and work with you to develop a financial strategy that meets your needs. 

Samuel Molina is an Accredited Financial Counselor®, Certified Financial Therapist™ Practitioner, CEO and Founder of The Academy of Financial Education, a non-profit organization dedicated to helping the community have a healthier relationship with money. Visit Samuel’s FindAnAFC profile to view his services and connect with him on LinkedIn.