Are You Worried About Losing Your Job? Here's What You Can Do
Our unemployment rate is getting better day by day, but many people in the workforce understand that their job might not be safe. Instead of knocking on wood as the pandemic "hungover" worsens, it is essential to be apt to secure another job or prepare economically for a job loss.
If your job security and financial well-being are keeping you awake at night, here are a couple of recommendations to follow:
Assess Your Current Expenses
Are you aware of how much money you're spending every month? When everything follows its usual course, our monthly expenses can skyrocket in a blink of an eye. Make the time to evaluate your current budget and figure out the amount of money you are spending to see if you can make any cutbacks.
The priority is to determine how much is needed to cover the imperative expenses; mortgage, insurance, utilities, food, and other vital items for your daily activities. A clear comprehension of this value would have you in a better position if you were to lose your job.
The majority of my clients find expenses that are not paramount for their lifestyles, even if they have been a part of a significant part of their lives. With a clear idea of where your money is going, cutting several of them can often save you countless money every month.
Increase Your Cash Reserves
The rule of thumb to keep in a cash reserve is from six to twelve months' worth of your ordinary expenses. And in our current economic environment, many people are doing what they can to ensure they are better prepared for an emergency. According to the US Bureau of Economic Analysis, since the pandemic began, the average personal savings rate jumped to 32% in April and 23% in May.
If you're currently above the cash reserve threshold, even if your current job situation is stable, do not be tempted to spend it impulsively. Separating cash away for a complicated month can be a troublesome task to perform, but accomplishing it will bring your mind at ease.
A healthy cash reserve will allow you to continue executing your investment strategy. And while you might still be concerned about a job loss, your retirement plans do not have to be derailed. At Copley Financial Group, Inc. we are proudly positioned as one of the top investment management firms in the country, so we can help you in this and many more aspects.
Your Network Is Your Net Worth
Reaching out to individuals in your network and catching up on how the pandemic has impacted them may help you land a new job opportunity. Reaching out to friends you know who started new jobs during the past year is also a great idea.
The key is to be diligent in your approach. Plan it strategically. You do not want to face a scenario where you have a week filled out with networking calls, adding more stress to your current situation. As mentioned before, plan it strategically.
It is common to feel helpless when we think bad news is coming our way. However, there are things that you can control to be ready for this type of situation. If you are still having problems with it, contact one of our financial advisors or me to provide you with the necessary guidance to get through this.
Copley Financial Group, Inc’s financial advisors are here to be with you every step of the way of your financial journey. With offices in San Diego, CA. and Uniondale, NY. the team and I will do our best to see you achieve every goal you have.
