Workers are growing worried about getting laid off these days, with 54 percent of U.S. workers saying job insecurity is having a significant impact on their mental health, according to an American Psychological Association 2025 Work in America survey.
Additionally, another study from Live Career noted that 29 percent of career professionals say job insecurity is making them “more hesitant” to take time off this summer. Another 77 percent say they’re regularly stressed at work.
“Workers are deeply exhausted, but many feel unable to step away,” the study noted. “This is creating a cycle where the need for rest is clear, yet taking time off feels out of reach.”
Having An Emergency Savings Fund Can Allay Some Layoff Fears
While workers have little or no control over management labor decisions, they can control building a robust emergency savings to help stem the tide if a job loss hits home.
How much should Americans aim for emergency savings? While every household is unique, data from SmartAsset estimates the average expenses needed to be covered on a six-month basis, as follows:
- Single adult with no children, $12,660
- Single adult with one child, $25,274
- Two adults with no children, $18,554
- Two adults with two children, $32,326
“An emergency fund is essential in a job market where layoffs are rising and hiring has slowed,” Andrew Latham, a financial planner and content director at Supermoney.com, told NTD. “Job searches now average over six months, and expenses like rent, groceries, and COBRA health premiums continue regardless of income.”
Even having $5,000 to $10,000 in savings can prevent you from relying on credit cards with 20 percent interest or withdrawing from retirement accounts with penalties. “Nearly 59 percent of Americans still can’t cover a $1,000 emergency,” Latham noted. “A cash cushion provides financial stability and lets you job-hunt with a clear head instead of taking the first offer out of desperation.”
Here’s how to start stacking cash with a new emergency savings plan.
Start small, stay consistent, and keep your savings separate.
Open a high-yield savings account, automate transfers of $50 to $100 per paycheck, and avoid dipping into it. “Then cut back on expenses like unused subscriptions or weekly takeout to free up extra cash,” Latham said. “Also, apply any tax refunds, bonuses, or side income directly to your fund.
Break your goal into stages.
Start by aiming for $1,000 in your savings account, then build to $3,000 and beyond. “This approach builds momentum and reinforces good saving habits,” Latham said.
Automate your savings contributions.
Personal finance experts recommend automating savings directly from your employer to a high-yield savings account.
“This way, the funds are funneled directly into your savings account, which is separated from your checking account, so you’ll be less tempted to tap the funds,” Leslie Tayne, attorney and founder at Tayne Law Group, told NTD.
It’s challenging to build emergency savings if you’re putting the funds into an active checking account or one that you utilize regularly. “Keeping savings separate allows you to not only see the account grow but also limit exposure to the use of those funds,” Tayne advises. “The key is really to let the funds sit without tapping them so that you can yield a return, and your pot of gold will really build.”
Aim for weekly numbers you won’t miss.
People fail when they try to save too aggressively. “If $50, $75, or $100 a week feels comfortable, start there. Small wins build momentum,” Terence Bradford, creator of A Check For Life, a lifetime income stream advisory television series, told NTD.
Cut one thing and redirect it.
You don’t have to cut your entire lifestyle, just one expense. “That could be a subscription you don’t use, takeout twice a week, or delivery apps,” Bradford said. “Redirect that money straight into savings.”
The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.