Even if you’re on the right financial path, it doesn’t take much to turn an easy road into an unpaved, uphill climb. It could be an accident at work. Perhaps it will be the first round of layoffs at your job. Or it could just be a reduction in billable hours. When you’re an employee, you don’t have much control over the trajectory that your company will take. But you can have control over your finances no matter what. Here are five tips that ensure your financial stability for years to come.
Stack up six months’ worth of savings. This is the very first step for anyone, no matter what their career outlook is like. Factor the costs of all your essential expenses for one month, and then multiply that by six. You don’t have to account for luxuries such as weekend trips and nights out, but you should at least be able to cover your household bills, transportation and food for six months should you ever find yourself unable to work.
Find out about your company’s compensation plan. If you suffer from an accident at work, you’ll at least receive a little compensation from the government. The standard rate of pay is a weekly check of 85 over the course of four months, which is probably not enough to sustain your household. For this reason, you should know if your employer offers an additional compensation package for injured workers. And just in case you find yourself in a dispute for more compensation, consider researching accident-at-work claims and obtaining legal guidance from a personal injury lawyer Detroit or a workers’ compensation lawyer in your locality, based on your specific circumstances.
Open a line of credit while you can. If you find your job compromised in any way in the future, most lenders will see you as a liability. If you’re a homeowner, consider applying for home equity now just in case you fall on hard times later. You shouldn’t use it unless absolutely necessary, but it could be a financial lifeline if you run out of cash.
Get rid of debt strategically. Paying off debt is usually an uphill battle, so it would be unrealistic to expect to get rid of all of it quickly. However, you should focus on your high-interest debt first because those are the balances that end up costing you more and making it more difficult to get out of debt. If you end up not being able to meet payments on low-interest debt for some reason, it won’t be as financially devastating as these more destructive lines of credit.
Never stop networking. This final tip is essential. You may love your company and feel like you’ve finally found the right job for you, but getting to know other people in your profession could be the difference between staying employed and searching for work for months should your company go under. Search for industry organisations that meet periodically so that you can meet all of the people you want in one place. Then, consider it an inexpensive investment in your financial future.