September 15th, 2020
Preparing for the Unexpected in your Career
We are currently living in a world immersed in uncertainty.
In a time when you are encouraged to embrace and accept the “new normal,” how can you comfortably do so if your job is on the line?
According to Forbes, as of May 5, 2020, “Over 30 million have filed unemployment claims in the last six weeks. That represents approximately 23% of the workforce.” These figures are startling and hit close to home for many.
This pandemic proves that, unfortunately, unexpected events happen and may pose a financial threat to you, family, and/or friends. Conversely, you may receive a promotion or a raise, which is equally important to financially plan for.
Planning for the unexpected in your career is crucial. Whether you work for someone else or are self-employed, consider the possibilities of an increase or decrease in your income.
You are probably wondering: How can I plan for something if I don’t know it’s coming?
While there is no way to anticipate exactly what will happen, you can take some steps to create wiggle room in your wallet.
First of all, everyone should have an emergency fund. The harsh reality is we all face the risk of hitting a financial emergency. You may never need it, but it certainly does not hurt to have it as the potential risks are drastic.
This tip should go without saying: live within your means. Be mindful of and continually track your monthly payments in contrast with your income. Consider refinancing your payments if it makes sense. If you receive a promotion, raise or bonus, then you may want to pay off your debt sooner rather than using that additional income to splurge on something you want (versus something you need).
Look into disability insurance. In a nutshell, your greatest asset is your working self, so this insurance protects you in case you are no longer able to work.
Check in with your financial planner as changes happen and keep them in the loop. They should ensure your savings, investments, payments, and everything in between are where they need to be. Even if your career changes for the better and your income increases, then you should consult your financial planner to alter your financial plan with the new income figures.
You should always keep emergency funds, living within your means, insurance, and financial planners in mind throughout the course of your life. Although you have no way of knowing exactly what will happen next, you should hope for the best and prepare for the worst.