Today, job security is a myth. During the pandemic, we witnessed long-time businesses struggle and close down after a couple of months.
A lot of employees were laid off. That’s why some transitioned to online jobs.
Though remote working is relatively pandemic-proof, we still don’t know if all our clients will last forever.
It doesn’t hurt to be ready just in case.
So here are 5 ways to financially prepare for an unexpected layoff.
Assess Your Monthly Expenses
It’s not wrong to elevate our lifestyle when we hit a specific income level. But sometimes, we don’t allocate enough for savings and investments in the process.
What’s worse is that some people even live beyond their means. What will happen if you suddenly get laid off?
So as early as now, assess your monthly expenses.
Are there any expenditures you can live without, like an unused gym membership or subscription? ¥
Do you have cheaper alternatives to some of your expenses?
Maybe instead of driving a gas-hungry luxury car, you can downgrade to a modest fuel-efficient vehicle.
Possibly, you can also refinance some of your loans to a lower interest rate.
Afterwards, you can then use the freed-up cash flow for other wealth-building ventures.
Build an Emergency Fund
When you get some extra cash flow, you can build an emergency fund.
An emergency fund serves as a financial buffer for your daily expenses when no money is coming in.
The recommended amount is 3 to 6 months’ worth of monthly expenses. But saving around 1 year’s worth is quite ideal.
Your emergency fund basically means you won’t starve while you look for another job or other sources of income.
Life and Health Insurance
When you don’t have a job, how will you pay for treatments during health emergencies?
And the cost of healthcare isn’t a joke.
So it’s a good idea to invest in life and health insurance policies to protect your savings, just in case.
Learn New Skills
Clients pay you according to the value you can give to their business. The more skills you can offer, the more money you can earn.
So during your spare time, learn new skills or hone your existing ones further to improve your craft.
These can include a skill that complements your current job. For example, a content writer can learn SEO for more optimized blogs.
Or maybe learn a new skill from a different industry altogether.
When you update your skill set, you can offer more services. This way, you’ll have a lot more opportunities in the future.
Cultivate Alternative Income Sources
It’s too risky to rely on one source of income. What will happen if it stops?
It’s hard to predict the future, so it’s important to have multiple income streams as a backup.
Having alternative sources can provide an additional layer of security and financial stability.
With this, consider looking into side hustles, freelancing, or maybe starting a business to diversify your income streams.
Fortunately, remote work allows you time and location flexibility to venture into these money-making activities.
So if you’re looking for remote working opportunities, you can sign up through Remote Staff for the best online job listings for Filipinos.
Remote Staff only offers long-term contracts for their talents.
And if your client suddenly stops getting your services, Remote Staff actively markets your profile to get you a new one.
Start a long-term remote career with us by signing up today!
