The first principle of my blog is Creating Ecosystems of Success and a key focus is Career Discussions. In some instances losing our jobs is in our control and in other instances, it is beyond our control. In either case, it’s important to think about what you would do should such a circumstance arise. The following contributed post discusses this and is entitled, How Would You Cope With Losing Your Job?
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The world of work has changed dramatically. In our grandparents and parents eras, you’d often get a job after leaving school or university and work that job until you retired. Industry and businesses tended to be long lasting, and job roles in general were much more secure. These days, things change quickly. The speed that technology advances means that companies have to adapt, and the roles that exist within them change to match. Companies have higher rates of failure for this reason, and so none of our jobs are quite as safe as we’d like to think. No one likes to think about being made unemployed, but if your company goes under, you get made redundant or you get sick or injured then it’s something you’ll have to face. ‘Hope for the best but plan for the worst’ is a good mindset to have here, here’s what you can do to get yourself in the best position if this were to happen.
Save and stockpile
Having money saved in general is no bad thing. Often in life, big expenses will crop up from time to time, and if you have a ‘buffer’ it can prevent a situation from becoming a lot more stressful. Aim to have at least three months of rent/ mortgage, bills and other costs set aside in the bank. That way, if you do lose your job you have everything covered for a few months while you find something else. A new job won’t always come right away, so by having this money set aside you don’t risk falling into debt or arrears or even losing your home. Another thing you could do is stockpile long lasting food items, toiletries, cleaning products and other home essentials. Fill up your pantry with staple items- tins, jars, dried grains, herbs and spices and you have a number of meals you can make if you’re short on cash for a while. Fill a cupboard upstairs with kitchen and toilet paper, toothpaste, shampoo, soap and cleaning essentials for the home. At least that way you don’t have to struggle during leaner times, particularly if you end up losing your job. You don’t need to go mad and stock up as if the zombie apocalypse is imminent. But grab a few essentials when they’re on sale and store them away, you might be glad of it one day.
Get insured
Having health, dental, home, pet and other kinds of insurances means you’re not left out of pocket if the worst were to happen. Insurance costs might seem like something you can cut out of your budget if you’ve recently lost your job, but it’s now you need them more than ever. If you do need to make a claim you’ll be so glad you had them in place.
Have an alternate source of income
Having a side hustle, a way to earn some extra cash (even better if it’s from home!) can make your situation a little easier if you lose your main source of income. Whether it’s from freelancing, blogging, a Youtube channel or a home business, you at least have some cash flow coming in and can cover your basic costs. It can take some time to get a side hustle established to the point that it’s earning regular money, so don’t wait until you’re at the point that you really need it. Start today, work it in your spare time and use it as a way to boost your monthly income. That way, it’s there if you need to rely on it later down the line.
Improve your CV
Improving your CV means that if you do lose your job, you’ll find it easier to get something else. Don’t just rely on the experience from your current role, there’s plenty more you can do. Why not do an online course in a subject that’s linked to your career path. You can study online, from home in your spare time so it doesn’t have to be a huge commitment. You could take up some voluntary work, or even start a hobby that would look good to employers. For example, if your chosen career requires patience and logic you could start at a chess club. If if requires teamwork, a team sport would look impressive.
Ensure you’re claiming the money you’re entitled to
There are various benefit and welfare schemes out there, make sure that you’re claiming everything you’re entitled to. There are certain benefits that you don’t need to be out of work to claim, for example military spouse benefits and child benefit that you get regardless if you’re entitled. But sickness, disability and job seeking benefits could all apply to you depending on the reason you’re out of work. Be sure to check and claim the money that’s owed to you.
How would you cope if you lost your job tomorrow? Do you have any systems in place that would make the process easier?
Having been unemployed several times in my career. I always made decision on my financial abilities based on my needs not my wants. For me; my health is the biggest thing to consider especially at my age of 57. Both of my parents are cancer survivors. Dad; a prostate cancer survivor at the age 85. And my mother Thyroid and glaucoma cancer survivor at 88. Both of them are still alive to this day. In our discussions, he stressed the value of taking care of our health to both my sister and I. The loss of health is the single most devastating thing that can happen to anyone. Because in that setting, one cannot work when they are in the hospital and the bills are building. When my father explained to me the cumulative costs of getting their cancers resolved I was floored. That was twenty years ago. I hope that all BM keep the quality of their health in check as they get older and make the necessary financial provisions to do so. Warren Buffet and Charlie Munger both speak on this topic at length too. BM need to pay attention and take care of their health too.