Читать книгу Financial Security For Dummies - Eric Tyson - Страница 39

During your adult life, you’ll almost surely change jobs, perhaps even several times a decade. I hope that most of the time you’ll be changing by your own choice. But let’s face it: Job security is not what it used to be. Downsizing has impacted even the most talented workers, and more industries are subjected to global competition.

In Chapter 2, I cover many economy-wide problems that lead to more widespread job losses. The government-mandated economic shutdowns in 2020 due to the COVID-19 pandemic is a recent example. Prior to that, millions of folks lost their jobs during the 2008 financial crises.

But even when the economy overall is doing really well, as it was for example in 2019 and into early 2020 when the unemployment rate fell to a 50-year low, more than 200,000 people each week in the United States were filing their initial claims for unemployment benefits. So, bad things can happen to good people even during good economic times.

Here then are my suggestions for dealing with the inevitable loss of your job someday or perhaps an unexpected reduction in income:

  Always be prepared to lose your job. As the Boy/Girl Scout motto says, be prepared! Unless you’re incredibly fortunate or lucky or both, you will someday unexpectedly lose your job and/or face a significant reduction in your employment income. No matter how happy you are in your current job, knowing that your world won’t fall apart if you’re not working tomorrow can give you an added sense of security and encourage openness to possibility. All companies and organizations go through tough times and layoffs are always a possibility. You may believe you’re irreplaceable, but unfortunately, the senior manager making job cut decisions doesn’t think the way you do. You may indeed be highly valuable and even underpaid, but let’s face it, bad things happen to good people because the people making decisions in organizations sometimes don’t know what they’re doing or make bad or politically motivated decisions.

 Structure your finances to afford an income dip. Probably the area where I’ve seen more people get into trouble during the good times is to overspend on their housing expense. If you’re really stretched buying a home with all the associated expenses, consider what you would do and how challenged you might be on a reduced income. Now, if you lose your job and are out of work, you can generally collect unemployment benefits, but in most states and areas, those benefits typically replace a modest portion of your prior employment income. The pumped-up and inflated benefits paid during the job losses of the COVID-19 pandemic are certainly not the norm.

 If you lose your job, batten down the hatches. You normally get little advance warning when you lose your job through no choice of your own. It doesn’t mean, however, that you can’t do anything financially. Evaluating and slashing your current level of spending may be necessary. Everything should be fair game, from how much you spend on housing to how often you eat out to where you do your grocery shopping. Avoid at all costs the temptation to maintain your level of spending by accumulating consumer debt. See Chapter 9 for more info.

 Arrange to continue insurance coverage. Most importantly, that can include insurance coverages such as health insurance and possibly disability insurance and life insurance. Replacing these on your own will cost money, of course, but going without them will expose you to potentially catastrophic financial risks. Please see Chapter 11 for more details.

 Evaluate the total financial picture when relocating. Sometimes when folks lose their job, they may find better opportunities out of the area that either require a move or, if a remote position, may allow you to live any number of places. Don’t call the moving company or pick your new home until you understand the financial consequences of the different options. In addition to evaluating the salary and benefits of a given job, you also need to compare the cost of living of given locations. You’ll want to pay attention to housing costs, commuting, state income and property taxes, food, utilities, and all the other major expenditure categories that I discuss in Chapter 9. Check online for cost-of-living information and calculators such as BestPlaces.net.