💪 Recession-Proof Your Career In 6 Steps

If you follow the news closely, you may be feeling a bit of whiplash. New jobs are still being added and unemployment continues to fall. At the same time, many companies are announcing their funding and growth, while an estimated 189K (and counting) tech employees worldwide have been laid off since January of 2022. Pair this with increasing interest rates and sky-high inflation, and it makes sense that many companies are reducing spending, pausing hiring plans, and preparing for what seems to be an imminent recession. This week, HerMoney gets the scoop on what career experts say you should do to protect yourself from job loss.

The top of the list? The bottom line, of course. Even if money matters aren’t your area of expertise, it’s time to identify ways to cut costs or drive revenue for the business or within your department. (Then make sure leadership knows about your effort!) For more ways to make yourself indispensable at work, check out all six tips at HerMoney.com.

We all know that divorce is complicated and expensive, and recently, those expenses have been magnified by inflation. The cost of legal services is up 6% from a year ago, which means paying hundreds or even thousands of dollars more in attorney’s fees. (Plus, dips in the stock market can also make dividing up investment accounts more contentious.) And with a still-tight housing market and mortgage rates that are double what they were a year ago, it can feel like fights over the family home have no winner. All of this means that — if you’re going through a divorce or think you might be soon — you have to get even more strategic about protecting your finances. On average, women experience a 27% decline in their standard of living post-divorce, while men actually see their standard of living rise by 10%. On this week’s HerMoney Podcast,* attorney Lisa Zeiderman walks us through all things prenups, postnups, and complex financial divorce agreements, so you can get empowered and ask all the right questions. You got this.

Retirement is 10 Years Away. Here’s a Cheat Sheet

Not everyone wants to retire. Others may be looking forward to getting out of the fast lane and settling in for some amazing vacations and volunteering. A few days ago, the private HerMoney Facebook group lit up with a discussion on retirement — specifically which steps we should be taking when retirement is 10 years away. The ideas came pouring in with more than 150 comments and counting. (We love it that so many of you are thinking about the future and strategically planning for the years ahead!) So, we made a list of the 10 best – and most strategic – suggestions on how to prepare for retirement 10 years out. Among them: Purposefully building up a social network outside of work, finding volunteer pursuits you’re passionate about now, and delaying taking Social Security benefits for as long as you can. (We’d love for you to join us for our next session of FinanceFixx so we can keep the conversation going!)

Open Your Mail: IRS Letter Could Be Worth Thousands

It’s time to stop giving that envelope from the IRS the side-eye and open it already. It could be good news. Some nine million families are getting letters from the Internal Revenue Service alerting them to an error that may be in their favor. HerMoney’s Rena Philips received such a letter this month and shares her $2,000 mistake with you. As it turns out, you may have made a similar slip-up by not taking full advantage of tax relief measures put in place in 2021 to help families recover from the pandemic. “My mistake,” she explains, “was in calculating my full Child Tax Credit on form 8812, according to the IRS letter. I am due $2,000, plus $74.62 in interest, which, ironically, I must report as income on a future return.” The IRS has now sent letters to millions of taxpayers who may have erred on their 2021 return, particularly involving the Child Tax Credit, the Earned Income Tax Credit, and/or the Recovery Rebate Credit. Even if you didn’t get a letter, the IRS offers guidance (detailed in the story) for how to make sure you aren’t still owed money because of miscalculations related to pandemic funds.

How to Budget (Like a Boss) in Your 20s & 30s

We all know the importance of saving, investing and, hopefully, making a plan for retirement. But sometimes just getting started can be one of the biggest challenges we face. Plus, there are so many questions … What type of accounts should you create? And what’s more important — saving or paying off student loans? When do you start saving for college expenses for your children? It’s a lot to unpack and learn. Luckily, we have lots of the answers. This week, we checked in with financial experts to uncover the top budgeting (and saving) tips for your 20s and 30s.

More For You To ❤️

Adopting a senior pet? Bringing home an older pet can provide companionship, but it also may require a greater financial investment. Here’s how to plan for it using the expertise of Healthy Paws Pet Insurance.**

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Your Money Map is back next week. Join HerMoney’s Jean Chatzky and productivity expert, Julie Morgenstern, to learn the best strategies for building habits and achieving your goals, especially for retirement. Tune in next Wednesday, January 25th, on Jean’s Facebook, in partnership with the Alliance for Lifetime Income.

Have a great week!

The HerMoney Team

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*The HerMoney podcast is proudly sponsored by Edelman Financial Engines. Unlock your wealth potential with our sophisticated wealth planning. Continue your journey at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines – Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM2211988.

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HerMoney is not a client, agent, representative or affiliate of EFE. Edelman Financial Engines (“EFE”) is a sponsor of the "HerMoney with Jean Chatzky Podcast,” created by HerMoney Media. Inc. (“HerMoney”) and provides cash compensation to HerMoney Media. HerMoney receives a sponsorship fee from Edelman Financial Engines depending on the number of podcast downloads, as measured by the end of the calendar year. The sponsorship fee is paid on a quarterly basis each year. In turn, HerMoney also provides promotional deliverables regarding EFE on the HerMoney podcast, newsletter, and social media channels. Due to this sponsorship arrangement, HerMoney has an incentive to endorse EFE and its services.