When job security feels uncertain, the smart play is to shore up your finances now so you don’t have to scramble later. Every dollar you save or debt payment you defer is extra breathing room if income slows down.

Below, you’ll find five strategic actions to shield your nest egg from a volatile labor market. You can think of these moves as career insurance: Each builds a buffer to protect you from future layoffs or pay cuts.

Calculate Your Financial Runway

Before anything else, figure out your runway: If your paychecks stopped tomorrow, for how many months could you cover your essential expenses? Work with your financial planner to add up all your liquid savings (cash and cash alternatives) and divide by your monthly “must-pay” bills (housing, food, utilities, insurance, and debt minimums, among others). This “months of freedom” number tells you how long you can coast without income.

If that number is less than 3–6, raising it should be one of your first financial priorities—and you might consider boosting your emergency fund toward 8–12 months, if possible. (With at least eight months’ worth of savings, you can job-search strategically and negotiate rather than panic-taking any offer.)

Emergency fund means what it says: No touching unless there’s a real emergency. Keep it in easily accessible vehicles (high-yield savings and money market accounts work well) so you can pull cash within days. The goal is to sleep easily knowing that even a sudden layoff or market downturn won’t trigger a financial catastrophe. Think of it this way: This cash is a cushion that buys you time and options—not meant for splurging, but to protect you and your household during times of financial vulnerability.

Pause Aggressive Debt Repayment

In good times, you might aggressively attack loans and credit card debts to save on interest—a savvy money move. In a downturn, however, it may be wise to switch gears and conserve cash. That means paying only the essentials and minimums, rather than pre-paying extra.

Stay current on your mortgage, car loan, and utility bills—losing these could be catastrophic—but scale back on extra debt payments. Likewise, cut or suspend non-critical spending like subscription services, gym memberships, or entertainment to free up cash. Ideally, under these circumstances, you would re-route extra cash into savings rather than debt.

Defer Big Purchases

When times are unsettled, delay any non-essential discretionary spending. Bigger purchases you might usually feel comfortable with (a new car, a home remodel, a big vacation) should wait until your income is on sturdier ground.

Instead, consider any extra cash you have lying around a way to extend your runway—rather than shrinking it. Each dollar you don’t spend on a superfluous purchase you’ve effectively added to your emergency fund—where it can also go to work and get growing. That extra buffer can pay off handsomely if the economy takes a turn.

Take Inventory of Your Benefits Now

Jobs often come with perks that will vanish if you leave—but on the flip side, there are some benefits you may still get even if you lose your job. Take inventory of your benefits package holistically: health insurance, retirement contributions, stock vesting schedules, paid leave, etc. Then use what you can, while you can.

Suppose, for example, you have some elective medical or dental work coming up, like a root canal or a non-urgent surgery. If you’re employed, it might be a good idea to take care of it sooner than later—because employee coverage ends once you’re off payroll.

Similarly, if you have a Flexible Spending Account (FSA) for health costs or daycare, spend those funds immediately. Unused FSA balances are forfeited when you leave the plan.

Next, check your 401(k) match schedule. Are you fully vested? If not, accelerating vesting is usually not possible—but don’t leave easily earned match dollars on the table. Use any remaining paid vacation or sick days, if allowed by HR, as they may otherwise be converted to severance pay or burnout. Also, note any stock options or RSUs: Will they vest soon, and what happens to them if you’re no longer with the company?

It may also be worth brushing up on your rights after a layoff. For example, under federal law, you can elect COBRA coverage to keep your employer health plan. While COBRA can be expensive, it at least prevents a coverage gap. Last but not least, be sure to review any group life or disability insurance you have—these coverages typically end when you leave your position, so decide whether you need to replace them.

Consider a HELOC or Personal Line of Credit

Finally, consider getting pre-approved for backup credit before you need it. In uncertainty, a home equity line of credit (HELOC) or an unsecured personal line of credit can serve as a supplemental emergency fund, an extra safety net. But be warned: This isn’t free money. It’s a loan, and that means it comes at a cost.

A HELOC is, as its name suggests, secured by your house equity—which means it offers much lower interest rates than credit cards, and typically a higher credit limit. Once in place, you don’t have to draw on it immediately. Just knowing it’s there can feel like having a backup insurance policy. A personal line of credit, on the other hand, doesn’t put your home on the line—but will likely come with more stringent eligibility requirements, since there’s no collateral.

Once the line of credit is secured, treat it like stand-by fuel: Keep the line open, but don’t borrow now. Use it only in a real emergency, and plan to pay it back quickly once you’re earning again. Be wary, too, of variable rates and potential fees.

Surviving a shaky job market isn’t just about budgeting harder—it’s about being proactive, strategic, and ready for what comes next. A few timely financial moves can turn uncertainty into control and position you to weather instability without sacrificing your long-term goals.

At Felton & Peel, we specialize in helping households prepare for both the expected and the unpredictable. From maximizing your cash runway to reviewing benefits and backup financing options, we’ll help you build a plan that’s resilient, flexible, and fully tailored to your situation. We’re here to help—and your first consultation is on us.