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Cam Newton, once one of the NFL’s most electrifying quarterbacks, is now tackling a challenge far off the field: the struggle of losing income.
At 35, Newton’s days as a professional athlete are behind him. After his one-year, $6 million contract with the Carolina Panthers expired in 2021, he officially stepped away from the game. Now, the former football star is candid about the financial realities of life after fame.
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“Being in the NFL, everyone knows there’s a large sum of money that comes to you in a short span of time and being away from the game for three years, those checks don’t come in the same,” he said in a recent episode of Special Forces.
Newton admitted that the sudden drop in earnings has made it difficult for him to feel like “Superman” to his eight children.
“It hurts me knowing that I can’t provide like I once did,” the former pivot wrote on Instagram.
In a dynamic and volatile economy, it’s not just entrepreneurs and professional athletes who face sudden fluctuations in income — ordinary workers are struggling too.
Unpredictable job market
Elon Musk, a senior advisor to President Donald Trump and the head of DOGE, pledged to cut $2 trillion in federal spending.
This has resulted in 275,240 layoffs in both the federal and private sectors in March, with more underway. The United Parcel Service is slated to lay off roughly 20,000 employees. Meanwhile the Veterans Affairs Department may lay off nearly 80,000 people by August in a return to 2019 staffing numbers.
This marks the second-largest number of layoffs in the U.S., after the pandemic-driven shut downs in March 2020 when over a million people lost their jobs due to the global shutdown.
In this difficult job market, many laid-off white-collar workers have struggled to replace their salaries and have settled for lower pay, according to Business Insider. Like Newton, many now face hard choices and uncomfortable adjustments to their lifestyle.
If you’re facing or preparing for a sudden dip in income, here’s how you can bolster your finances.
Minimize debt
American households collectively carried an all-time high of $1.21 trillion in credit card debt at the end of 2024, according to a report from the Federal Reserve Bank of New York.
This means many households may need to examine their credit card debt if their income drops, as these liabilities could quickly become unsustainable. Credit card debt is notorious for having exorbitantly high interest rates. For example, the average rate on credit cards is 20%, according to the Federal Reserve of New York.
With home values higher than ever, you can make your home work harder for you by making the most of your equity. The average homeowner sits on roughly $311,000 in equity as of the third quarter of 2024, according to CoreLogic.
Rates on HELOCs and home equity loans are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity.
Unlock great low rates in minutes by shopping around. You can compare real loan rates offered by different lenders side-by-side through LendingTree.
Just answer a few simple questions, and LendingTree will match you with up to 5 lenders with low rates today.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Maximize emergency savings
After tackling debt, the next step is to focus on expenses.
Frequent vacations, eating out and shopping sprees may no longer be affordable. Here, Dave Ramsey’s famous “beans and rice” approach can help to pay off debt rapidly and start accumulating savings. Temporarily scaling back to a bare-bones “beans and rice” budget can give you space to develop the emergency funds you need. .
As a rule of thumb, you should have at least three to six months worth of expenses in your emergency fund. With the probability of the unemployment rate rising higher over the next year increased to 44% — the highest level since April 2020 — planning ahead can help you avert financial strain.
If you want to leverage your fund immediately, you can earn 4.00% APY on your emergency savings by opening a Wealthfront Cash account. This rate is 10 times higher than the national average of 0.41%. Plus, you don’t have to pay any account fees and can enjoy unlimited transfers and 24/7 withdrawals.
You can also get your paycheck two days in advance if you register for direct deposit on your Wealthfront account. That could boost your interest income by up to 14% annually, assuming you receive biweekly paychecks.
You can open a Wealthfront Cash account within minutes with just $1.
You can also check out Moneywise’s best high-yield savings accounts list of 2025 to find options that offer up to 4.50% APY.
Set aside a fixed amount per month to continue investing
Whether you’re an entrepreneur or an employee, it pays to set aside a little money each month for investing. Passive income from saving regularly can help you stay afloat if your career takes an unexpected turn.
You don’t need to invest millions of dollars in order to boost your wealth. Investing a small portion of your paycheck each month can make a huge difference, thanks to compound interest.
For instance, investing $50 each week for 20 years amounts to $128,276, assuming it compounds at 8% annually. The next step is choosing where to invest. Historically, the S&P 500 has delivered impressive average annual returns of 10.33%.
You can start your investment journey by investing your spare change from everyday purchases with Acorns.
Acorns rounds up your everyday spending to the nearest dollar, and invests the rest in low-cost diversified ETFs. So, your $4.25 morning coffee becomes a 75-cent investment in your future.
If you want to take it one step further, you can invest a larger proportion of your paycheck in a low-cost S&P 500 ETF with Acorns.
The best part? You can get a $20 bonus investment when you sign up.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
