Yes, some products really will cost less this year. LightField Studios / Shutterstock.com
Editor’s Note: This story comes from partner site DealNews.com. Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend. The last few years have thrown a lot of households into a tailspin, as living expenses have soared due to pandemics, supply chain issues, and out-of-control inflation.
Tech layoffs don’t automatically spell trouble for the broad labor force.
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The fact that Amazon is laying off workers shouldn’t come as a big shock. The tech giant announced late last year that it was planning to reduce its headcount, and that layoffs would continue into early 2023.
But now, Amazon has announced that it will be cutting ties with more than 18,000 employees. And that’s a pretty unsettling thing to hear.
But while it’s never fun to learn that a major employer is downsizing its staff, the reality is that Amazon’s latest move is not necessarily a sign that the U.S. economy is tanking and that widespread layoffs will soon be upon us. There’s a reason Amazon and companies like it are having to let people go. And it’s a factor that may not affect you at all if you work outside the tech industry.
Tech companies like Amazon enjoyed a nice boom during the early days of the COVID-19 pandemic, when people’s lives went digital and remote. But over the past 12 months, as things have shifted back toward the “normal” most people enjoyed before the pandemic, tech companies have seen their revenue decline — and have been forced to make cuts accordingly.
In fact, a lot of tech companies specifically ramped up hiring during the early days of the pandemic. But now that the need for extra workers no longer exists, they’re cutting costs — and ties — to preserve their bottom line.
Clearly, this is not great news for people who work in the tech sector. But it’s also important to recognize that the trend of announcing mass layoffs has, for the most part, been limited to the tech sector. And so people who work outside that sector may not need to lose sleep over the idea of being laid off just yet.
Even those who do work for tech companies aren’t necessarily doomed. While Amazon’s announcement sounds extreme, as of the end of 2021, Amazon had more than 1.6 million employees, 1.1 million of whom were based in the U.S. So all told, it’s shedding a really small percentage of its total workforce.
If you work for a tech company that boomed during the pandemic but has since declined, you may want to take extra precautions and gear up for a layoff just in case. In fact, preparing for a layoff is something everyone should do, regardless of industry.
The reality is that experts have been sounding recession warnings since mid-2022. And while we’re not guaranteed to experience one in the near term, it’s a possibility to acknowledge.
The best way to prepare for the loss of a job is to build a solid emergency fund. Aim for a minimum of three months’ worth of living expenses in your savings account, and go beyond that point if possible.
Even though Amazon’s recent announcement doesn’t signify broad economic trouble, the loss of a job could happen at any time. Having a solid level of savings could make it so you’re able to get through a period of unemployment without negative long-term repercussions.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.
If you’re worried about a recession, these moves could help you sleep easier at night.
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There’ve been so many recession warnings in recent months that it has started to feel as if Chicken Little is telling us the sky is going to fall. All the same, there is a very good chance that the U.S. will enter a recession next year, so it’s worth doing what you can to prepare. Especially since any steps you might take will stand you in good stead whether or not one comes along.
Here are some steps you can take to recession-proof your finances.
Many people find the idea of making a budget scary, especially if it might also mean some lifestyle changes. I can totally understand the fear. For a lot of my twenties, I had only a vague idea where my money went. But changing the way you see budgeting can make a huge difference to your bank account balance.
Far from being a boogeyman, a budget can be a guiding light that helps you navigate difficult economic waters. Start by working out your monthly income and expenses. You can do this by scanning through recent bank statements or using a budgeting app. Think about bills that you pay annually or quarterly as well.
Once you’ve got an idea of your financial situation, ask yourself the following questions:
What’s the gap between your income and your expenses? This may be money you can put toward your emergency fund or debt repayments. If you’re on top of both, you might invest that money for the future. If the gap is very small or you spend more than you earn, look for ways to reduce your costs or increase your earnings.If you were to lose your job tomorrow, how would you cope? Think about how much money you have on hand to tide you over and plan out what non-essential spending you’d cut if you got laid off. When bad things happen, we often panic, so it helps to work out what steps you’d need to take beforehand.
Many financial experts recommend having an emergency fund with three to six month’s worth of living expenses. With a potential recession on the horizon, some — like Suze Orman — suggest socking away even more. If you lose your job or get hit by another financial crisis, that money will mean you can cover your essential living costs without having to take on debt or sell your investments.
Keep your emergency fund in a separate savings account that’s easily accessible, so it doesn’t get mixed up with the rest of your money. Use the estimation of monthly expenses you made above to get an idea of how much you’d need and think about other ways you might keep your head above water in an emergency.
If you carry high interest debt, particularly that of the credit card variety, look for ways to pay it down. The more you can pay off, the better positioned you will be to handle any economic difficulties. One big benefit is that you’ll free up some of your monthly budget, as you won’t have to make any debt payments. That will make life easier if your income suddenly drops.
Another thing to bear in mind is that interest rates are climbing, making it more costly to carry debt. Plus, it’s often harder to borrow money in a recession. If you can reduce your credit card debt now, you’ll have leeway to borrow again if things get tough. Another side benefit is that you may also improve your credit score. Paying down credit card debt can improve your credit utilization ratio, which is a key factor in calculating your score.
We’ve touched on some of the big financial steps to take, but what about your career? A lot depends on what you want and what stage of life you are at. As with your finances, try to take stock and make a plan now so you know what to do if you do lose your job. If you’ve been thinking about switching jobs, what qualifications might you need to make the jump, and how can you go about getting them?
If you like your current job and career, are there moves you can make today to improve your standing at work? Perhaps you can volunteer for additional responsibilities or learn skills that will help you stand out. There are no guarantees, but positioning yourself as a positive and adaptable colleague never does any harm.
It’s also a good idea to update your resume and reach out to your professional network. It’s often easier to be specific about your skills and achievements when you have a job than when you’re sitting at home worried about your next steps.
Unfortunately, knowing how to prepare for an economic downturn doesn’t necessarily make it easy to do. Soaring living costs have made it particularly difficult to save money and pay down debt in recent months. Indeed, some families have had to dip into their savings or take on debt to cover essential costs.
Try to set yourself achievable goals in terms of savings and debt pay off. We don’t know for sure when a recession will hit, nor how serious it will be. But every dollar you can put aside now will ease any economic pain you suffer if things do take a turn for the worse.
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Here’s yet another thing that’s getting more expensive.
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If you own an iPhone, you probably want it to last as long as possible, since iPhones aren’t exactly cheap. But what if your battery can’t seem to hold a charge?
The battery in a phone is often the first thing to go. But that doesn’t necessarily mean you need to replace your phone and rack up a massive credit card bill in the process. Often, you can simply purchase a new battery and continue to get good use out of your phone. But soon, you might spend more for a replacement battery, and that’s something to be mindful of if money has gotten tight.
Many consumers have spent the past year paying extra for everything from groceries to utility bills to apparel. We can thank rampant inflation for that. So it’s not so shocking to learn that the cost of a new iPhone battery is going up.
Beginning March 1, battery replacements for iPhone X through iPhone 13 models will cost $89. That’s a $20 increase from the current price. Meanwhile, replacement batteries for older models like the iPhone SE and iPhone 8 will rise from $49 to $69.
And it’s not just iPhone batteries that are getting more expensive. If you need a new iPad battery, you can expect to spend $20 more there, too. And if you need a new battery for a MacBook Air, you’ll spend $30 more.
Apple lowered the price of iPhone replacement batteries back in 2018 after research revealed that the company intentionally slowed down the performance of older phones to prevent sudden battery shutdowns. But like other retailers, Apple is feeling the crunch of inflation. So now, it’s passing that cost onto consumers by raising the cost of replacement batteries.
Phone batteries aren’t designed to last forever. But there are a few things you can do to get more life out of yours.
For one thing, don’t overcharge your battery. You don’t have to start your day with your cell battery at 100%. Stop charging when your phone gets to 80%, and allow your phone’s battery to run down toward the 0% mark.
Also, while today’s super-fast chargers may be convenient, they can strain your battery and shorten its lifespan. So you may want to stick to a standard charger that charges your battery more slowly.
In some cases, it may be obvious that you need a replacement battery for your iPhone — such as if your device can’t hold a charge, or if your battery goes from 100% to 0% within an hour of turning your phone on. Otherwise, you can go into your phone’s settings and check out the “Battery” section.
In there, you’ll see an option called “Battery Health and Charging.” You’ll be able to see what your battery’s maximum capacity is. If it’s a lower number, it may be time for a new one.
But if you see that your battery’s maximum capacity is 90%, well, that’s pretty darn good. And so you may not need a replacement battery right away. And seeing as how a new battery might cost you more beginning in March, it’s something you probably don’t want to spend money on prematurely.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
You should read this if you’re thinking about how to make a down payment.
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If you’re trying to buy a home, you probably already know that coming up with the down payment on your property is one of the biggest challenges you’ll face. That’s because the majority of mortgage lenders require you to put at least 3% and ideally closer to 10% or 20% down on a property — and this means coming up with thousands of dollars.
When you’re eager to get into a property of your own, you may be tempted to look for funds from any sources that might be available to you. But, there’s one approach that finance expert Dave Ramsey said you should absolutely steer clear of.
If you have money in a retirement account, like a 401(k), and you’re struggling to come up with money for a home down payment, you may be tempted to just withdraw the money from your retirement plan. After all, it may seem like it makes little sense to have thousands of dollars just sitting in an account you probably won’t need for decades when you need a home now.
The reality, though, is that while you technically can take money out of your retirement plan for a home down payment, you really shouldn’t. In fact, Dave Ramsey has been adamant in insisting taking this approach would be a really bad financial choice.
“Making an early withdrawal is a horrible idea,” Ramsey said. “You’ll get hit with income taxes plus a 10% penalty. No thanks!”
Ramsey explained that while it may be “tempting to tap into that pile of cash in your retirement account,” the cost to you both right now and in the future would be far too great.
Taking money out of your 401(k) is not the right approach for exactly the reasons Ramsey outlines.
Your 401(k) (and other retirement plans, like IRA accounts) is tax advantaged. You get special tax breaks for contributing to these accounts because the government wants to encourage you to save for retirement. The catch is, in most cases, you’ll get hit with a big tax bill if you take money out of them before you’re actually retirement age.
You not only have to pay taxes on the money withdrawn from your 401(k) at your ordinary income tax rate, but you also have to pay a 10% penalty. So you don’t end up with as much money as you expected, and the IRS takes a huge cut.
Ramsey also warns that a 401(k) withdrawal could cost you a fortune in lost compound growth because the money you take out wouldn’t continue to earn returns that could be reinvested.
You don’t want to face these undesirable consequences of raiding your retirement accounts to fund your home purchase, so don’t even consider this idea. Instead, keep saving or look for other solutions like picking up some side work. This will help your down payment balance grow bigger ASAP so you can get into a home soon without putting your future self at risk of struggling in retirement.
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What happenedToday, the Federal Trade Commission (FTC) proposed a rule to ban employers from imposing noncompete agreements on their workers. The proposed rule would make it illegal for an employer to:Enter into or attempt to enter into a noncompete agreement with a workerMaintain a noncompete agreement with a workerRepresent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement.This would apply to anyone who works for an employer, paid or unpaid, including independent contractors, interns, and volunteers. Employers would also be required to rescind existing noncompetes and inform workers that noncompete clauses are no longer in effect.The public can submit comments on the proposal for 60 days, and the FTC will then finalize the rule. It would take effect 180 days after the FTC publishes the final version of the rule in the Federal Register. However, it could face legal challenges.So whatThe FTC reports that about one in five American workers (approximately 30 million people) are bound by noncompete clauses and that this proposed rule could increase wages by nearly $300 billion per year. “Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand,” said Lina M. Khan, FTC Chair, in the press release announcing the proposal.Noncompete clauses prevent an employee from working for a competing employer or starting a competing business. They usually apply within a certain geographic area and period of time after the employment term ends. These contractual terms can negatively impact worker pay, since switching jobs is one of the ways people increase their income.Although noncompetes are more common for high-salary workers, they’re not exclusive to high earners. Some businesses add these contractual terms with interns and low-salary workers, and they’ve been used with many types of employees across various industries.Even if you’re not bound by a noncompete, they can hold down wages for other workers, as well. The hiring process is more expensive for employers that need to navigate noncompete agreements, as they spend more time determining which candidates they can hire. Studies have shown that average wages are generally higher in states that restrict noncompetes. Many workers could benefit from a personal finance perspective if noncompete clauses are eliminated.Now whatThe FTC’s proposal is excellent news for workers across the country, and especially those currently bound by noncompetes. If the rule goes through as planned, you’ll have the freedom to look for higher-paying job opportunities or start your own business, without the worry of legal troubles.The rule would take some time to go into effect. For now, you can review the proposal to determine how it may affect your work situation and submit a comment if there are any changes you’d like to see. Comments can be filed online when the proposal is published at Regulations.gov.Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If you’re using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes. Read our free reviewWe’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
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Today, the Federal Trade Commission (FTC) proposed a rule to ban employers from imposing noncompete agreements on their workers. The proposed rule would make it illegal for an employer to:
Enter into or attempt to enter into a noncompete agreement with a workerMaintain a noncompete agreement with a workerRepresent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement.
This would apply to anyone who works for an employer, paid or unpaid, including independent contractors, interns, and volunteers. Employers would also be required to rescind existing noncompetes and inform workers that noncompete clauses are no longer in effect.
The public can submit comments on the proposal for 60 days, and the FTC will then finalize the rule. It would take effect 180 days after the FTC publishes the final version of the rule in the Federal Register. However, it could face legal challenges.
The FTC reports that about one in five American workers (approximately 30 million people) are bound by noncompete clauses and that this proposed rule could increase wages by nearly $300 billion per year. “Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand,” said Lina M. Khan, FTC Chair, in the press release announcing the proposal.
Noncompete clauses prevent an employee from working for a competing employer or starting a competing business. They usually apply within a certain geographic area and period of time after the employment term ends. These contractual terms can negatively impact worker pay, since switching jobs is one of the ways people increase their income.
Although noncompetes are more common for high-salary workers, they’re not exclusive to high earners. Some businesses add these contractual terms with interns and low-salary workers, and they’ve been used with many types of employees across various industries.
Even if you’re not bound by a noncompete, they can hold down wages for other workers, as well. The hiring process is more expensive for employers that need to navigate noncompete agreements, as they spend more time determining which candidates they can hire. Studies have shown that average wages are generally higher in states that restrict noncompetes. Many workers could benefit from a personal finance perspective if noncompete clauses are eliminated.
The FTC’s proposal is excellent news for workers across the country, and especially those currently bound by noncompetes. If the rule goes through as planned, you’ll have the freedom to look for higher-paying job opportunities or start your own business, without the worry of legal troubles.
The rule would take some time to go into effect. For now, you can review the proposal to determine how it may affect your work situation and submit a comment if there are any changes you’d like to see. Comments can be filed online when the proposal is published at Regulations.gov.
If you’re using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
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