Job anxiety is spiking across America. Gallup recently polled Americans and found 60% believe unemployment will climb in 2026. Suze Orman pointed this out in a recent blog post and thankfully, the the financial expert has advice for the millions of workers losing sleep over potential layoffs.
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Stop obsessing over economic headlines and start preparing your finances instead.
The Reality Check on Job Searches
Most people assume finding new work takes a few weeks or maybe a couple months. The data tells a different story. When the economy is humming along normally, landing a new position averages five months from start to finish.
That timeline gets worse during downturns. Age makes it harder too. Workers over 50 consistently take longer to get hired than their younger counterparts. The gap can stretch to weeks or months depending on the industry and role.
Orman’s recommendation is blunt: Assume your job search will take longer than you think and plan accordingly.
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Bigger Emergency Funds Than You Think
Financial advisors typically suggest three to six months of expenses in emergency savings. Orman throws that conventional wisdom out the window. She wants eight to 12 months of living costs sitting in a savings account.
That number isn’t arbitrary. Five months covers the average job search plus three months of breathing room for unexpected complications. If you’re over 50, that buffer becomes critical since your search will likely exceed the average timeline.
Calculate your actual monthly expenses including rent or mortgage, utilities, groceries, insurance and minimum debt payments. Multiply that number by eight. That’s your target emergency fund.
The amount probably looks impossibly high. Break it into chunks. Save one month of expenses, then celebrate. Work toward two months, then three. Progress matters more than perfection.
The Spending Audit Nobody Wants To Do
Orman suggested examining every dollar leaving your accounts. Not just the obvious waste like unused streaming services or forgotten gym memberships. Dig into categories that feel nonnegotiable.
Your grocery bill, phone plan, internet service and insurance premiums all have room for cuts. You don’t need the premium cable package or the unlimited data plan that costs $20 more per month.
Take the money you free up from these cuts and funnel it directly into emergency savings. Make it automatic so you can’t spend it elsewhere. A $75 monthly reduction equals $900 per year in your safety net.
The Health Insurance Trap
Cobra coverage sounds reassuring until you see the bill. Federal law requires employers with 20 or more workers to offer continued health insurance after layoffs. The coverage lasts 18 months.
Here’s what most people miss: Your employer stops paying their portion of the premium the day you’re laid off. You become responsible for 100% of the monthly cost. Some employers tack on an additional 2% for administrative fees.
That employer-sponsored plan that costs you $200 per month with your company paying the rest? Expect the full bill to run $800 to $1,200 monthly depending on your coverage level and family size.
Orman recommended researching your options before you need them. Find out what your Cobra premium would actually cost by asking HR. Then compare that number to plans available through the Affordable Care Act marketplace at healthcare.gov.
What Actually Reduces Anxiety
Orman wrote that worry is human but action beats paralysis. Economic uncertainty looms large but you control your savings rate, spending habits and insurance knowledge.
The worst-case scenario becomes less terrifying when you’ve got 10 months of expenses saved, your spending trimmed to essentials and a clear plan for health coverage. You might still get laid off. You don’t have to be financially destroyed by it.
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This article originally appeared on GOBankingRates.com: Suze Orman: 3 Things To Do Instead of Worrying About Job Security
