When we're lucky, most of us manage to earn more than we need to keep our heads above water. But difficult financial times to come almost all of us and being prepared is one of the only ways we get through them. It's been reported that over 60% of Americans have trouble meeting their basic expenses just one month after losing their jobs. This scary statistic means that far fewer people are prepared for a difficult financial future than you might think.
We all hope that we'll be able to hold onto our jobs, and find better ones when the time comes. But things don't always happen that way, especially in today's difficult economy. Being prepared to safely weather a financial storm is a huge part of feeling secure... and surviving intact until the skies clear.
Think your job may be in trouble, or simply want to create a cushion for your future? Read on for tips on how to accomplish it.
1. Pay off your debt. Debt in general, and credit card debt in particular, will become a huge strain if you lose your job. Now, while your salary is still safe, is the time to pay off as much debt as you can. And if you worry that your job is in real trouble, do whatever you can to avoid stacking up any additional debt.
2. Supplement your salary. If you have an interest that you'd like to be paid for, now's the time to get started. Whether you want to dabble in a bit of freelance programming or design, or start up your own online business, anything you can do to supplement your income will help to create a more secure situation for you. If you wait until your salary has already dried up, it just might be too late. Get started now.
3. Calculate your unemployment. Even if your job isn't currently in danger, it's a good idea to know how much unemployment you will receive if and when the time comes. Take the time to calculate how long your unemployment benefits would last if you lost your job today, and how much you would receive every month. This will give you a good idea of how much additional savings you'll need to set aside.
4. Create a living expenses budget. When planning for the worst, you're going to need to sit down with a piece of paper and a pen and really calculate how much you need to live. It can take months from the moment you lose your job (or your severance package ends) until you find a new one. So you need to calculate how much you spend in a month, and how much you will need to live. Look at your rent or mortgage, your utilities, you food bills, your car or transportation costs, debt payments, and your health insurance (if necessary). Don't include any luxuries or extras, like evenings at the movies and internet dating site memberships.
5. Set aside a savings. Different financial planners will give you different opinions about how much savings you need to have in order to weather a job loss. But most say that building a savings of 12 months worth of living expenses is the best policy. Look at your potential unemployment earnings and your current living expenses, and calculate how big your savings would need to be to get you through a long period of unemployment. Then take steps to build that savings, even if you have to do it slowly and from the ground up.
6. Keep your savings safe. Sometimes exposing your assets to a bit of risk is a great way to make them grow. But when you put together a savings meant to support your family after a job loss, it's best not to put that savings at risk. Do you have more than 12 months worth of expenses saved? Then by all means, invest the extra money as you see fit. But set aside those 12 months (or as many as you can manage) and keep them safe.
The threat of losing your job can be almost debilitating. But going without work for a time will be a lot less painful if you know that you will be able to support your family. Setting aside enough money for an uncertain financial future does require a sacrifice. But once it's done, you can breathe easier, assured that your family will be able to weather even the worst of financial storms.
Author Resource:-
This article was written by Shawn Wilson, a member of the customer support team at Datepad, where we always offer free internet dating. Datepad has a massive directory of informative free dating articles along with a great list of dating site reviews on our dating blog.
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