In a recent issue of Time magazine, there was an interesting article about your job being your most important asset. It had some different ideas and definitely gave me some food for thought. It also underscores that education, what I call good debt, is worth pursuing because it increases your future earning potential.
But what about all of the people who have lost their jobs, or are in danger of losing them soon? Their “asset” is no longer paying out. The best protection if this has happened, or might happen to you, is to have money in savings. I know a few people who work at jobs where they are assigned to particular long-term projects. Some of these folks know that there aren’t any new projects in the queue and that their employment will be done when their current project is done. One person is not really worried because he’s saved money for just such an occasion and knows he’ll be all right for about 1 year. Some of the other people I know are sweating it a bit more.
I realize that there are all kinds of expenses that make it difficult to save. However, it is easier to find money to set aside when you have a job than when you’re on employment. Make a category for savings in your budget and put as much as can in there each month. Check with your work to see if you can have two accounts for your direct deposit. If you can (and most workplaces who have direct deposit can), just put some money directly into your savings account. It can be easier if you never actually have the money to spend on other things. Do what you need to do so you’ll be a little bit safer if you lose your job.
No comments:
Post a Comment