Be Prepared for Job Uncertainty: From a Financial Advisor
No matter the economic climate, it’s always wise to plan for the unexpected. If you’re feeling uncertain about job security, here’s how you may be able to strengthen your financial position, safeguard your career, and maintain peace of mind.
Financial Readiness
Build an Emergency Fund
Having a financial cushion can be beneficial. Start with a goal of saving $1,000, then work toward covering three to six months of essential expenses.
Identify essential expenses like groceries and rent. Then, look at discretionary expenses, such as multiple streaming services. Cut back on these where you can, to potentially increase your savings.
Understand Unemployment Benefits
Each state has different eligibility requirements and payout structures for unemployment benefits. Research what you may qualify for and factor that into your financial planning.
Minimize Credit Card Debt
Avoid accumulating high-interest credit card debt. Whenever you can, pay off your balances in full each month. Wait to make big non-essential purchases until your finances are stable.
Review Severance and PTO Policies
Look into your company’s policies regarding severance pay and accrued paid time off. Some employers offer financial payouts for unused vacation days, while others do not. If yours doesn’t, consider taking time off while you still can.
Plan for a 401(k) Loan Repayment
If you’ve borrowed from your 401(k), be aware that your employer may require full repayment upon separation. If the loan defaults, the remaining balance could be treated as taxable income, potentially resulting in penalties.
Explore Health Insurance Options
Losing employer-sponsored health insurance can be costly. While COBRA coverage is an option, it often comes with hefty premiums. Look into alternative options like the public marketplace, private plans, or coverage through a spouse’s employer. Some individuals may also qualify for subsidies to help offset costs.
Schedule Medical Checkups and Refills
Book necessary medical appointments, including vision and dental care, while your current coverage is still active. Also, refill prescriptions in advance to avoid disruptions if your insurance situation changes.
Submit Reimbursable Expenses
If you have work-related or medical expenses that can be reimbursed, submit them quickly. This includes flexible spending accounts or business expenses. Do this before you lose access to employer portals.
Career Protection
Build and Maintain Professional Contacts
Keep in touch with colleagues and industry connections, as they may serve as references or job leads in the future. Make sure you have personal contact information for key people before leaving a job.
Update Your Email on Important Accounts
Make sure to link your professional accounts, like networking sites or retirement accounts, to your personal email. Do not use your work email, as it may be deactivated when you leave.
Refresh Your Resume and Online Profiles
Update your resume and professional profiles with quantifiable achievements rather than generic job descriptions. A strong, results-oriented resume can make a difference in a competitive job market.
Save Samples of Your Work
If permitted, gather work samples and positive feedback that showcase your skills. These can be valuable assets when applying for new opportunities.
Know Your Market Value
Research salary trends in your industry and region to understand what you should be earning. This information may help you confidently negotiate compensation in future roles.
Expand Your Network
Proactively engage with your network while still employed. Strong relationships can be invaluable when job searching, providing leads, advice, and referrals.
Stay Open to New Opportunities
Consider exploring new roles or industries that align with your skills and interests. Take courses, shadow colleagues, or attend industry events to gain insight into potential career shifts.
By taking steps now, you may be able to better handle uncertainty with confidence. This may help you find long-term stability.
Sources:
https://www.fidelity.com/learning-center/smart-money/how-to-prepare-for-layoffs
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
This material is provided as a courtesy and for educational purposes only.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.
