Today we live in very uncertain economic times. Many people have been or face potential job loss and with the volume of employees losing their positions, finding another job can pose many challenges.
Losing a steady income can be devastating for many families, especially if, like the majority of Canadians, you are living payday to payday. To safeguard your lifestyle and assets, all income earners should prepare for potential loss of their employed positions.
While no one wants to lose their job, in our uncertain economic times, company downsizing, or closures can happen any time and in any industry. While some closures are expected and give the staff time to prepare, other losses are completely unexpected.
To avoid the devastating and long-term effects of losing your household money, it is important to be prepared for any possible financial emergency. Here are some tips to help in the event of employment loss:
1. Pay off Debt
Many Canadians are living with debt loads that are far too high. Owing money to outside agencies reduces your chances to save. It can also cause many challenges, especially if your earnings are reduced or lost. To avoid financial ruin, it is important to keep your debt to a minimum.
To reduce the monies you owe others, avoid unnecessary spending, use cash as much as possible to make purchases, and pay off bills as quickly as possible. Developing a debt reduction plan can help you manage your repayments.
2. Save, Save, Save
Having a nest egg will help cushion the blow should you lose your job. Try putting money aside into an account or savings fund each paycheque so you will have spare income should something happen.
3. Maintain Your Most Valuable Assets
While this is something that you might take for granted when you have a steady income, the truth is those small little jobs that need to be done to the car or around the house can become an extra expense that you just cannot afford once the regular money disappears. It is important to stay on top of those small jobs, so they don’t grow into bigger, costlier hardships.
4. Stay Current with Your Training
Every field changes as new technologies, research, trends, and tools are developed. Today, more than ever, it is important to stay on top of your industry’s advances, so you can maintain a competitive edge in the job market. Take advantage of all training opportunities available to you and stay current on all the latest news and trends in your field.
5. Research Industry Markets
Losing your job is devasting enough, but more so if your career field is seeing an industry slowdown in job opportunities. To avoid the added stress of trying to find a job in a barren market, it is essential to stay current with the employment trends.
What jobs are in the top hiring ranks? What jobs are not? Are there other jobs outside your immediate field that you are also qualified for? Through research and knowledge, you can find potential opportunities that you did not existed before.
6. Know Your Rights
We have heard over the last some of the worst job loss cases in the country. Employers are obligated by law to provide their staff with severance pay, legal forms, and other documentation in the event of layoffs. If the company is not honouring their obligations, you need to see an employment lawyer to make sure your rights are protected.
Today, job loss is becoming the norm in many fields, leaving people in financially perilous and stressful situations. Planning for unexpected income loss will help you should you lose your job.