Is your Job Secure?
With all the current economic craziness going on right now it would seem like the world was going to end….and for some this may be a reality in the sense that their job may not be very secure!
The stock market crash may be hurting peoples investments, but if they haven’t bet their house on the market they may be able to ride the roller coaster until it recovers without too much pain....
However, if your livelihood relies on a regular wage, and your employers business is suffering due to many issues caused by the economic crash or corona virus impact, such as short supply of stock, less sales coming through the door, not being paid by their clients or the very possible likelihood of a quarantine, then you need to ACT NOW!
If you do have an emergency fund, now is a good time to start using your Emergency Fund Budget – DONT use the CASH – ACTIVATE the budget you set up just in case you lost your job – so that you are spending less than usual, and putting away extra cash – just in case.
By doing this – hopefully you too can ride out the wave of non-employment, or quarantine without going into debt (and by knowing it is for a very specific reason - it makes it easier to pull back the spending).
If you don’t have a stash of cash – i.e. emergency fund – that will see you through the potential loss of income – then it’s even more vital that you ACT NOW!
How do you do this?
Work out your bare minimum essential survival budget – this means, no lattes, no movies, no eating out – You should still be making your debt repayments but otherwise - think about what you can live on if you just needed, food, water, shelter and transport.
Enact this budget immediately – and stash away all the extra cash (preferably into a savings account) you usually spend until you have the equivalent of 2-3 months (or more if you haven’t found a new source of income) worth of your emergency/survival budget.
Remember, this too shall pass, but no one knows how long this will take, but by acting now, you can make sure that you set yourself and your family up to minimise any negative fallout, including job / income loss.
- Coach Rach
