How to survive a layoff 📉

from someone who's actually been through it

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Two years ago, I was laid off from my full-time job.

In some ways, it was my dream job: I got paid to write every single day. I got to collaborate with so many talented editors and writers. I got to interview people all over the country about their money stories. Once, a non-binary person emailed me and told me how much it meant to them that a trans/non-binary reporter wrote a story about money.

And, in other ways, I was ready to leave: I’ve always known that media is a fickle industry — in the words of Heidi Klum on Project Runway, “One day you’re in, and the next day, you’re out.” The newsroom I worked for used the slogan Better Capitalism. As much as I tried to resist that in my own work, that ethos was beginning to suck the passion I had out of my work.

When I learned that my name was on the list of jobs to get cut, I was emotionally ready to take the L and figure out what to do next. Financially, I was in a tough spot. My emergency savings weren’t fully funded yet, and I had just gotten into a car accident. I ended up putting $4,000 worth of repairs on a credit card after not using credit cards at all for years.

Two weeks ago, Perfect Union reported that layoffs in the US have surged to their highest level since early COVID. I know a lot of folks are going through this right now, and I’ve helped a lot of clients prepare for potential layoffs.

For those worried about layoffs in their industry, or anyone who’s just been laid off, here’s how I survived the last two years:

TL;DR

What worked:

✅ Prioritizing cash savings
✅ Using a credit card with 0% APR for the first 15 months
✅ Setting an internal limit for how much debt I’ll allow myself to carry
✅ Asking my creditors to lower my monthly payments
✅ Making a budget for my severance, unemployment pay, and food stamps
✅ Knowing what I wanted to do with my newly open schedule
✅ Getting side gigs, like driving for Uber
✅ Traveling to see friends and family
✅ Putting community first

What didn’t work:
🙅 Rushing to pay off my credit card debt
🙅 Skipping therapy

Scroll for the full details 👇

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What worked for me:

✅ Prioritizing cash savings

Like I mentioned in the intro, I got into a car accident just 3 months before I got laid off. I’m ok, thankfully! Other than whiplash, there were no major injuries. On the other hand, my car was totaled.

I had 3 choices:

1. Buy a new car — but I’d gotten used to not having a car payment for 5 years, and I didn’t want to do that.

2. Pull from my emergency savings to pay for a $4,000 car repair — this option would wipe out all the cash in my reserves, but I knew layoffs were right around the corner, and I didn’t feel good about doing this.

3. Put a $4,000 car repair on my credit card

Even though I hadn’t used a credit card in years, I ended up choosing option #3. Again, I knew that layoffs were around the corner, and I’d feel better about my options if I prioritized having cash on hand once that happened.

✅ Using a credit card with 0% APR for the first 15 months

To pay for the car repair, I opened a new credit card with 0% APR for the first 15 months.

This gave me the option to make small minimum payments while keeping cash on hand in case there were any changes to my income.

I made three different payoff plans:

1. The easiest way: Paying my minimum payment of $45 per month, then increasing payments as I earned more money.

2. The most ambitious plan: $4,000 split across 15 months = $267/month.

3. The middle road: Paying between $150 to $250 per month. I know that, once interest starts accruing on the balance, credit cards typically charge a minimum payment that equals the monthly interest charge + 1 to 3% of the prinicipal balance. After the 15 months of 0% APR were up, I estimated my minimum payment to be between $150 to $250. Making those payments would be my middle ground.

In the end, I chose payoff plan #1. A layoff is one of the hardest transitions people go through, and I wanted to give myself as much ease and kindness as possible.

✅ Setting an internal limit for how much debt I’ll allow myself to carry

That being said, I made a mental note that I’d only allow myself to carry $4,000 more in debt for my living expenses on top of the car repair costs.

Setting that limit helped me keep my debt payments as low as possible when my only guaranteed income was my $900 monthly unemployment.

✅ Asking my creditors to lower my monthly payments

At the time, my biggest debt burden was a $478 monthly payment on my private student loans with an interest rate of 6%. I chose to refinance my private student loans with Laurel Road a few years ago because they were one of the few lenders that offered a 3-month payment pause for financial hardships.

Once I knew about the layoff, I called Laurel Road right away to see if I could use the payment pause option. It turns out that I needed to make 12 consecutive payments before I qualified for the 3-month payment pause. At the time, I only had 10 consecutive payments on my record.

Knowing what I needed to pay and when I’d have a little bit of relief helped me stretch out my severance pay and unemployment benefits for as long as possible.

For people who have credit card debt and personal loans, I recommend calling your credit card companies and loan servicers ASAP to notify them that you’re experiencing a financial hardship. Most credit card companies require some kind of proof of lower income to put you on a payment plan with lower monthly payments. Even if they say no, shoot your shot and still give them a call.

✅ Making a budget for my severance, unemployment pay, and food stamps

I wrote down all of my fixed expenses, including:

• Rent

• Car insurance

• Therapy

• Subscriptions

• Debt payments

And I found a 3-month average for the following variable expenses:

• Groceries

• Dining out

• Gas

• Healthcare

• Entertainment

• Shopping

Knowing I couldn’t afford to keep the same lifestyle, I cut my budget for dining out, entertainment, and shopping in half. I didn’t always have the money to do those things, but knowing what I wanted to spend made me feel more human during the times that the only thing I could do was sit at home and eat ramen while watching Netflix.

✅ Knowing what I wanted to do with my newly open schedule

So many people romanticize leaving their 9 to 5 to start their own business. And yet, it was hard to find people who were able to do it sustainably.

I used a workbook called Business of Art: Entrepreneurial Training for Artists by the Center for Cultural Innovation. The book had an exercise where you map out an ideal work week, factoring in time to make art for your own pleasure. It helped me understand what I want my ideal workday to be like, so that I didn’t mindlessly apply for jobs that I didn’t even want. It helped me direct my energy and effort toward actions that would move my business forward.

✅ Getting side gigs, like driving for Uber

When money ran dry, I realized that I needed to get a day job or a side gig. But, while I was developing Queer & Trans Wealth, I knew that I needed a side gig that didn’t require as much mental and emotional labor.

At the time, I was working with Jen Mizgata, a career coach for journalists, who told me that artists like Amy Sherald made a similar type of investment early in their career.

For me, it opened up some internal classist conflicts: I went into six figures of student loan debt to get a bachelor’s degree. I had a successful career in the fashion industry before becoming an award-winning journalist at a national newsroom. My face is all over Instagram talking about money and financial wellness. Wouldn’t it be so embarrassing to get a side job driving drunk people around Los Angeles?

I’m not gonna lie, it was a tough side gig since I struggled with driving anxiety after the car accident I had in March 2023. To my surprise, making small talk with strangers in an Uber helped me get over my driving anxiety. And I learned just how badly I wanted Queer & Trans Wealth to work. The side gig opened up a new well of energy and inspiration.

✅ Traveling to see friends and family

Weird advice, I know. I spent about $750 out of my severance pay — about 7% of the lump sum payment I got — on traveling to the East Coast to see my family and friends for my 32nd birthday.

It seemed counterintuitive to spend more money during a time when I really didn’t know when I’d get paid next. But as you might have seen with my guide on how to budget your tax return, I always recommend setting aside 5 to 10% of a lump sum payment for fuck-it or treat-yourself spending.

I’m a big believer in taking my own medicine, so, instead of punishing myself for all the times I wanted to say “Fuck it!” and just swipe my card to travel, I budgeted for it.

✅ Putting community first

Community has always been the key to my success. I’m really grateful that I was a part of Anticapitalism for Artists and Economics. Arts. Transformation. while surviving a layoff.

Understanding that getting laid off from a corporate job had less to do with me individually and more to do with a larger system that was not built with my health and wellness in mind — and having people to process all of this knowledge with — it honestly saved my life.

I also want to give a special shoutout to Bear Hebert’s Radical Business Incubator. This group of values-aligned entrepreneurs helped me feel less alone during the ups and downs of starting a business.

What didn’t work for me:

🙅 Rushing to pay off my credit card debt

During high-revenue months, I sometimes ignored my own instincts (!!!) and rushed to pay off credit card debt. And you know what??? It sucked.

After making a big credit card payment, I felt a wave of pride followed by a tinge of shame for not being able to feed myself properly. Some weeks, I couldn’t even afford to go on dates with my partner or meet up for dinner or lunch with my friends for much-needed connection.

During low-revenue months, I didn’t have enough of a cash flow, so I’d end up taking on more side gigs instead of having the capacity to take other steps to grow Queer & Trans Wealth.

🙅 Skipping therapy

I’ve learned the hard way: When I go too long without therapy, I can’t make clear decisions, and I’m so much harder on myself than I care to admit publicly. I spiral into self-doubt and I can’t get anything done. Skipping therapy just isn’t worth it for me.

At this point, I treat my $500 monthly therapy cost like it was part of my rent. When I’m not able to afford the full $500, I go down to seeing my therapist twice a month instead of once a week.

When I’m not able to go to therapy every week, I make plans with my friends — something low-cost, like getting in my pool/hot tub, ordering takeout, or going for a walk — and let them know that I need some extra support.