Laid Off, In Debt & AI Is Here: How to Survive Next 5 Years

In recent months, I've been having the same difficult conversations repeatedly with friends, family, readers and viewers, all asking the same question: What happens if my job disappears tomorrow due to AI?

The uncomfortable truth is we're already in the early stages of a structural change in the jobs market.

Millions are looking for work, household finances are stretched by inflation, taxes and lifestyle choices, and artificial intelligence (AI) is accelerating the pace of disruption.

This post unpacks the problem and, more importantly, gives practical, realistic things you can do now to protect yourself and your family over the next five years 🙂.

About me: I’m a Chartered Accountant, a Financial Coach and Business Coach and a former Chief Financial Officer (CFO).

Together with my wife, Mary, we’re the founders of The Humble Penny and Financial Joy Academy.

In addition, we are Sunday Times Bestselling Authors of Financial Joy, a 10-week Plan to help you Banish Debt, Grow Your Money and Unlock Financial Freedom.

♻️ Please take a moment to share this post with friends and family.

Why this matters right now: a short, clear wake-up call

Companies are still making significant redundancies across sectors.

On LinkedIn, over 220 million people globally have the status “open to work”, and that figure increased by 35% from last year.

Those numbers are not just statistics; they represent families, mortgage/rent payments, school fees and anxiety for people who thought their career ladders were a safe bet.

I'm not trying to create panic. My goal is urgent clarity.

In this post, I'll lay out the trends I'm seeing and give you a practical plan to start defending your household finances and future earning power today.

If you're reading this and thinking “that's not me”, please read on anyway; the effects ripple further and faster than most people expect.

Part 1. The silent wave: job losses at all levels

Layoffs are no longer a story limited to junior positions or cyclical roles.

I'm seeing cuts in tech, finance, media, law, accountancy and marketing, etc, literally across seniority levels.

This is not a handful of companies trimming staff.

There is a broader adjustment in how businesses operate, invest and structure teams.

I recently spoke to a friend, a highly skilled senior professional, who spent nine months unemployed last year before finding another role. Nine months!

He's not alone. 

Recruitment cycles are longer, hiring is more selective, and employers are looking to automate or contract out tasks they previously assigned to headcount.

Pause and reflect: if a mid-career, experienced person can be out of work for that long, what does that tell you about hiring dynamics for the rest of us?

The answer: you must take responsibility for protecting your income and options now, rather than assume “it won't happen to me”.

By the way, there's a knock-on effect with professionals losing their jobs.

They book fewer plumbers, builders, electricians, joiners and reduce the number of times they might visit the barber/hairdresser per month.

We've seen people from these typically in-demand professions also reporting a decline in bookings.

Part 2. The golden cage: a lifestyle that traps you

We've been sold a dream: study hard, climb the career ladder, earn more.

But with each rung we often increase our fixed costs e.g. mortgage, private school fees, car leases, and lifestyles that require a constant inflow of cash.

The result for many people is not freedom, but a golden cage.

Examples I've heard recently include households paying £3,000+ per month on housing, or families spending £1,500 to £2,000 (+VAT) per month per child on private education.

No judgement, just an observation.

Add vehicle leases costing £400–£600 per month, childcare bills, buy-now-pay-later holidays and other subscriptions, and you can see why a single missed paycheck becomes existential.

These pressures affect all income bands.

I know people on six-figure salaries who are terrified of redundancy because their cost base rose in step with income. High salary does not equal financial resilience.

One of the clearest examples I heard recently was someone in Sweden who hates their job but can't quit because their mortgage debt exceeds €500,000.

When debt is that large, mobility evaporates, even if the job is damaging to their well-being.

That lack of choice is precisely what I mean by the golden cage.

Part 3. The AI threat: it’s not ten years away, it's here

Now let’s address the third leg of this stool: AI.

This isn't science fiction. It's altering the nature of work right now.

McKinsey estimates that up to 30% of work hours could be automated by 2030.

The UK government has echoed similar figures, up to 30% of all jobs are expected to be replaced or automated.

Those are big numbers.

That means up to one in three people could see the nature of their work change materially within five years.

AI will not affect everyone equally.

It will be particularly disruptive in roles that involve repetitive tasks, predictable outputs or easily codified rules.

That includes many administrative roles, data processing positions, some types of marketing work, content production and certain elements of finance and law.

Equally, it will reshape creative and professional work too, but often as an augmentation rather than a full replacement.

And we need to acknowledge equity in impact: those who are already underpaid or in precarious positions, often ethnic minority groups and those in lower-paid manual or semi-skilled jobs, are more vulnerable.

Without proactive steps, AI can widen existing inequality, including bigger wealth gaps.

Two sides of the AI story

Yes, AI brings enormous opportunity for creative entrepreneurs, skilled technicians and those able to harness tools.

But opportunity doesn't magically distribute itself.

Those who act strategically, learning skills that complement AI and building digital assets or communities, will thrive.

Others who wait or deny the change may get left behind. That divergence is the risk I want you to guard against.

Recommended: Have you read the book: Who Moved My Cheese?

It helps you deal with change in your work and your life. We recently got our sons to read it and share how they're navigating change in their lives, too.

Part 4. What to do now: immediate, practical actions

If you've made it this far, thank you.

Now let's move from diagnosis to solutions. Below are steps I've been recommending to family, friends and coaching clients, practical moves you can start immediately.

Treat this as a checklist to revisit monthly until your financial position improves.

1. Declare a household state of emergency (without panic)

This is not about fear-mongering, it's about prioritisation.

Put this at the top of your conversation and to-do list.

Call a family meeting. For real. Get talking.

Share the reality with your partner and immediate household, and if relevant, speak with siblings or trusted friends.

I've been chatting with my brother and sisters about this, and we're combining our skills, knowledge and resources to stay ahead.

Make planning collective.

Financial resilience is social as well as individual; communities will matter more as disruption grows.

In practical terms: set one or two concrete actions for the coming week and month.

Review upcoming large payments and any discretionary spending.

Are these going to move you forward rather than set you back?

Communication reduces surprise, increases confidence and buys time for better decision-making.

It reminds you that you are not alone in a more uncertain world.

2. Cut lifestyle bloat ruthlessly and honestly

Start by listing all fixed monthly costs. Get specific and be brutal.

Rent/mortgage, private school, car leases, unproductive subscriptions, childcare, buy-now-pay-later repayments,  they all count.

Ask these questions:

• Which payments can be paused, reduced or negotiated?
• Can we downsize or move to a lower-cost area?
• Can car leases be returned or renegotiated?
• Is private schooling essential now, or are there alternatives? Watch this video

Having a high income but equally high fixed costs leaves you fragile.

The aim is to reduce your break-even point, i.e. how much you need to cover expenses each month, so a short period of unemployment is survivable.

3. Think investment-first and build a financial fortress

Long-term resilience requires capital working for you.

Maximise tax-advantaged accounts (ISAs in the UK, Roth IRAs in the US, workplace pensions, or whatever tax-efficient vehicles you have).

If you can contribute even a small amount each month, compound interest works in your favour over time.

Don’t let fear of markets stop you from investing.

Focus on consistent, diversified contributions and use tax wrappers effectively.

If you're unsure where to start, begin with small, regular amounts and educate yourself.

There are many trusted resources and communities you can join to learn.

I believe liquidity (i.e. access to your money) and flexibility will be one of the most underrated advantages in a more AI-driven world.

Recommended: 8 Investments You Must Have By Age 45

4. Build an emergency buffer

An emergency buffer (three to six months of essential expenses at a minimum) is a game-changer.

If you have no buffer, your options after redundancy are narrower: you may need to take the first job that comes along, sell assets at the worst time, or fall into high-interest debt.

Build this buffer by cutting spending, selling non-essential items, and channelling bonus or extra income directly into savings.

If you can't reach three months immediately, focus on a smaller target (£1,000–£3,000) as an interim emergency fund while you scale up.

5. Start an income stream AI cannot kill

AI excels at repetitive, scalable tasks.

The antidote is human connection: services built on trust, presence and community.

Think about building your personal brand, creating community memberships, coaching, teaching or specialist services with high relational value.

Practical examples:

• Create a niche newsletter or membership for colleagues in your industry.
• Teach a practical skill you do well e.g. build short courses or run workshops.
• Freelance in consulting roles where relationships and judgement matter.
• Offer local services that rely on physical presence and trust.

These income streams won't always scale like software, but they are resilient.

They also give you options to pivot if your main job changes.

Recommended: Join our community to learn how to start creating AI-enabled income streams step-by-step.

6. Learn skills that work with AI, not against it

AI is a tool. Learn to use it.

Examples of high-value skills include:

• Prompt engineering and prompt strategy: getting reliable results from AI systems.
• Automation design: using automation tools to produce workflows that businesses want to buy.
• Data interpretation: turning outputs into actionable business decisions.
• Creative direction: editing and shaping outputs so they fit the human context.

Don't wait for perfection.

Spend 10–20 minutes daily experimenting.

Use ChatGPT, Perplexity, Midjourney, and automation platforms.

Don't be afraid of these tools even if you might say, “I'm not a tech person”.

Create. Fail (many times). Learn. Iterate. The goal is to combine your domain expertise with tools to produce unique value.

I'm reminded of this quote:

AI will not replace you, but a person using AI will.

Are you the person using AI or the one sceptical of it?

Other human-centred skills that AI cannot replace are:

• Creativity
• Critical thinking
• Empathy
• Adaptability
• Emotional intelligence
• Problem solving
• Communication, etc.

Recommended: Book a 121 Financial Coaching session with me

7. Know your numbers. Become the CFO of your own finances

Far too many households operate on autopilot: salary in, bills out, no clarity beyond the next pay date.

Become obsessed with the key metrics:

• How many months of essential expenses do you have saved?
• What is your total debt and interest rates?
• How much is in tax-efficient accounts (ISAs, pensions)?
• What is your realistic monthly break-even number?
• How much could you earn from side hustles this month?
• Is the liquid proportion of the financial net worth growing?

When you know these figures, you can make tactical decisions quickly.

E.g. pause a recurring expense, sell an asset, negotiate an interest rate, instead of reacting emotionally when pressure hits.

I think the next 5 years will be economically challenging for households without a plan and a bit of a financial fortress. Applying these 7 steps will keep you ahead.

Part 5: Your Concrete 90-day plan

If you want a compact action plan, here’s a 90-day roadmap that captures the above steps.

1. Week 1: Call the household meeting. List fixed costs and identify three quick savings (e.g. negotiate one bill, pause a discretionary spend, shop around).
2. Weeks 2–4: Build a £1,000 emergency fund by diverting savings and selling non-essentials. Start logging every small expense for a month.
3. Month 2: Open or top up an ISA/pension. Set up automated contributions, even a small amount monthly. Start learning an AI tool for 10 minutes daily.
4. Month 3: Launch a simple income experiment: a micro-course, a 1:1 coaching offer, or a paid newsletter. Aim to get a paying customer within 30 days of launch.

This is intentionally practical.

The goal is not perfection but momentum.

Small, consistent steps compound into real resilience.

How to think about retirement and long-term security

One of the quieter effects of job displacement is delayed or diminished retirement outcomes.

If you lose a long-term job and withdraw savings or delay contributions, your future retirement pot shrinks.

That compounds across millions of people and creates pressure on public finances in the long run.

So keep contributing to pensions and tax-efficient accounts where possible.

If a redundancy occurs, consult a financial coach or adviser to analyse your situation carefully before making rash decisions.

I'd recommend doing this sooner to get a concrete plan in place for your retirement if you feel like you are behind.

Recommended: No Retirement Savings at 40+? Retire In 10 Years Doing This

Community matters: your network is a lifeline

During disruption, your network is one of your most valuable assets.

That includes family, professional contacts, neighbours, alumni and community groups.

Share your situation, be generous with help where possible and ask for help when needed.

I want to emphasise again: survival will be more communal than it used to be.

Practical ways to leverage community:

• Set up a WhatsApp group for professionals in your area or industry to share job leads, contract work and opportunities.
• Exchange skills locally e.g. barter a tutoring session for childcare, for example.
• Join or create a co-working or peer coaching group to maintain momentum while you pivot.

What I would do if I were in your shoes

If I were advising a close friend or a family member today, here’s my short, direct checklist:

1. Declare a household emergency meeting and reduce break-even costs.
2. Build or top up an emergency fund to at least £1,000 immediately.
3. Stop borrowing for lifestyle i.e. freeze new debt and prioritise high-interest repayments.
4. Automate a small monthly investment into a tax-efficient account.
5. Start a one-person income experiment that focuses on human relationships (coaching, teaching, community).
6. Spend 10–20 minutes a day learning an AI tool related to your field.
7. Track and review your key financial numbers weekly.

These are simple but effective actions.

They don’t require a major life overhaul overnight; they require priorities, honesty and consistent application.

Common objections and how to respond

I've heard the usual pushback: “I don't have time”, “I'm too old”, “I'm not techy”, “This is just scaremongering”. Let me answer them briefly.

• I don't have time. Everyone has pockets of time: replace 20 minutes of social media scrolling with learning or a practical task. Small daily actions beat large, infrequent ones.
• I'm too old. Age is an asset: experience, judgement and networks matter. Pair those with new tools, and you become uniquely valuable.
• I'm not techy. Tech is a set of learnable tasks. Start with a single tool and a single outcome e.g. use ChatGPT to draft outreach emails and build from there.
• This is scaremongering. I hope so. But given the data and the lived examples I see, denial is riskier than action. Acting now gives you options; waiting narrows them.

FAQ

Q: Will AI take my job?

A: It depends on the role.

Tasks that are repetitive, rule-based or easily codified are most at risk.

Roles that require complex human judgement, deep relationships, creative leadership or physical presence are more resilient.

The safe strategy is to augment your role with skills that AI struggles to replicate: empathy, complex decision-making, contextual judgement and relationship-building.

Q: What's the fastest way to start protecting my finances?

A: Begin with three things this week:

(1) list your fixed monthly costs and identify three items to reduce or cancel;

(2) open a basic emergency savings pot and stash any spare cash into it;

(3) set up a small recurring investment into a tax-efficient account.

Q: What side hustles are least likely to be automated?

A: Coaching, teaching, specialist consulting, community-based services, and any business built on relationships and trust.

Digital creators who build niche audiences and monetise via membership, subscriptions or services can also be well-positioned if they combine human connection with platform tools.

Q: How do I learn AI tools without getting overwhelmed?

A: Pick one tool (e.g. ChatGPT), choose a small, practical outcome (e.g. write a CV, draft an outreach email), and spend 10–20 minutes daily experimenting.

Use online tutorials, join a community and iterate. Progress trumps perfection.

Q: Should I move house or downsize if I'm worried about job security?

A: If your housing costs are a significant portion of your income and you have little buffer, downsizing or moving to a lower-cost area can be a prudent, long-term insurance policy.

It’s a personal decision, but reducing your fixed obligations increases your flexibility and resilience.

Final thoughts. Urgency without fear

We are not five years too late. We are at a critical window of opportunity.

The next five years will change who benefits from AI and who loses out.

Those who prepare by lowering fixed costs, building buffers, learning complementary skills and creating human-centred income streams will be much better placed.

This post isn't meant to terrify. It's meant to wake you up.

Think of this as a family emergency drill. Call that meeting. Start that buffer. Launch the income experiment. Pause the lifestyle bloat. Learn a tool. Know your numbers.

The small actions you take today compound into real resilience tomorrow.

If you read this and want to take one action right now, here it is: ask yourself the question I ask my audience: if my job disappeared tomorrow, which one bill would I be most worried about?

Write the answer down. For a lot of people I've spoken to, the answer is their mortgage or rent.

That single question helps you prioritise the very next actions that protect your household.

Be strategic, be deliberate, and use the next five years to build durable options rather than fragile habits.

Start today and be bold. Don't stand in your own way. Make unusual decisions.

Here are some additional resources to help you thrive in a more AI-driven world:

• Book a 121 Financial Coaching session with me
• Escape Plan: How to Stop Living Paycheck to Paycheck
• Invest THIS In an ISA to Earn £2,000 Monthly Passive Income (Tax-Free!)

Watch the video version about surviving and thriving in an AI world:

 

And as always: in all things, be thankful and seek joy along the way 💛.