According to Bank of America, the US economy is projected to face some challenges in the near future. It is anticipated that the pace of job creation might slow down, leading to a potential decrease of 175,000 jobs per month and a rise in the unemployment rate to around 5.5% over the next year.
Additionally, there are concerns about the potential impact of AI automation, which could result in up to 45 million Americans facing job displacement by 2030.
While this information may sound worrisome, it's essential to acknowledge the changing nature of the job market in today's world. Job loss is becoming a more common experience for many households at some point or another. However, this doesn't mean all hope is lost. Instead, it highlights the importance of developing financial resilience regardless of the perceived stability of your current job.
Enhancing your skill set is a key step in preparing for potential changes in the job market. Continuous learning, upskilling, and staying informed about industry trends can increase your adaptability and marketability. Investing in your education, attending workshops, and seeking out certifications can be valuable steps to stay competitive.
For those who have already faced job loss, it's crucial not to lose hope. It can be a challenging time, but there are options available to help navigate through this transition. One option is to seek support from career counseling services or job placement programs that can assist in finding new opportunities. Networking within your industry or exploring alternative career paths can also be beneficial.
Additionally, financial planning is vital during periods of uncertainty. Creating a budget, managing debt, and building an emergency fund can provide a safety net during challenging times. How exactly can you upgrade this skill and what options do those who have already been dismissed have? Let’s dive deeper into the topic.
In a nutshell, financial resilience is the ability to withstand anything that can impact your financial situation. If you're financially resilient, you are able to deal with various unexpected costs and financial hits without them making your household vulnerable.
Your resilience is, of course, enhanced by financial resources (such as savings and a good-paying job, for example), but social and human capital plays an important role as well. If you have a support system of friends and family and if you have worked on acquiring a wide range of skills that you can, later on, ‘sell’ to an employer, then you’re already a lot more financially resilient than a lot of people.
Here are a few other common financial practices that will help you deal with unexpected life situations a lot better:
Ideally, you should have at least 3 months’ worth of expenses set aside, just in case. To build an emergency fund, you should train yourself to stick to your saving habits, learn more here. Following a budget and keeping your goals in mind will help you create an emergency fund in about 6-18 months.
You might not want to keep the money in your house where you can easily reach it as, in such a case, it can be tempting to simply spend the cash. At the same time, you would have to make sure that the money stays liquid and you do have immediate access to it. For this purpose, you might want to open a savings account.
Even if you have been in the same industry for decades, you should never consider your education or job training finished. To remain employable in today’s extra competitive market, you would have to make sure that you have time to develop new marketable skills.
Apart from improving industry-specific skills, you might also want to improve your language skills, get cross-cultural experience, and engage in volunteer work.
68% of life insurance owners report that they feel a lot more financially secure. Insurance can help make sure that you will not end up in an extremely difficult financial situation. Depending on the type of insurance that you have, you can count on getting your medical or car repair bills covered. In fact, there is even job loss insurance that can provide income in the case of a layoff.
Though you would have to pay for the insurance on a regular basis, one day you might find that all of these small expenses were worth it.
Furthermore, the majority of individuals tend to overestimate the cost of insurance. Depending on the type of coverage you need, insurance plans can be very affordable. For example, a healthy 30-year-old can potentially get a $250,000 twenty-year level term policy for $13 per month.
If you’re financially literate, then you have the knowledge and confidence needed to effectively manage, save, and invest your money.
The first step to financial literacy is learning how to budget. You might also want to learn how to optimize your banking (explore the various savings accounts, monthly account fees, account options, etc.), keep track of your credit score, and, perhaps, talk to a money coach.
All the pieces of advice mentioned above are helpful and amazing, but what if you haven’t yet had a chance to implement them into your life and now you have to deal with job loss without an emergency fund and unemployment insurance?
Try to follow these tips to avoid falling into a depression hole.
Losing a job can easily make you feel like you’re losing control over your life. So, you might want to try to regain it.
Focus on the little steps that will remind you that there are plenty of things in life that you can influence. For example, you can update your LinkedIn, reach out to your network to let them know that you’re looking and craft a compelling resume.
Many experts agree that people who have lost their job will go through 5 stages of grief (similar to what individuals might experience after the death of a loved one). Give yourself time to go through every emotion (denial, anger, bargaining, depression, and acceptance), but try not to dwell.
Each state sets guidelines that determine whether a person would be eligible for unemployment benefits and how much the individual can qualify for. You might be able to receive a few hundred dollars per week, if you have worked a certain number of weeks and if you have been unemployed through no fault of your own.
In any case, it’s worth checking your state unemployment website or paying a visit to the unemployment office.
Though it might seem tempting to lock yourself in your apartment, your future self would benefit a lot more if you choose not to do that. Give yourself a few days or a week or two to go through the grief and start networking.
Finding a job is practically a full-time job on its own. You would have to research, connect, and prepare. What you can do is post fresh content that will showcase your expertise, be active on industry-specific forums, and participate in job fairs.
The cornerstone of any type of resilience is a positive mindset. Remember that your current circumstances do not have to define your future.
Learn to identify negative thoughts and put the breaks on them by taking a cold shower or going for a run. Also, try to practice gratitude by writing gratitude lists – you’ll soon find out that in reality, you have a lot more to be grateful for than you might have thought.
You can use this time to reflect and clear your mind. Once you’re no longer focused on your career and don’t have to devote a major part of your day to work-related issues, you will have a chance to finally look at your career choices from the outside.
If you weren’t fulfilled at your previous job, then perhaps the time has come to make a major shift. By the way, people with untraditional backgrounds are often welcomed by employers as they are able to bring a different perspective (for example, any type of business experience can be beneficial for an HR, and a financial background can come in handy in IT).
Firstly, when you are helping other people, your brain produces ‘feel-good’ chemicals, and that’s exactly what antidepressant medication does, by the way. Secondly, by investing in others’ lives, you’ll get to realize how much you have to be thankful for.
And, finally, the majority of employers value volunteering experience in the potential employees as it signifies that the candidate knows how to get along with others and is ready to make a commitment. In some cases, volunteering can even help you gain job-relevant experience and broaden your networks.
Though the majority of the tips are not directly connected to your finances, they will ultimately help you gain financial resilience and figure out what your relationship with money should look like starting from now on.
Staying financially motivated and resilient after a job loss can be extra challenging or even impossible if you don’t have any source of income to cover your basic needs. And that’s where bridge income takes center stage. Its main aim is to allow job seekers to earn money while continuing to search for a career position that they actually want.
If you need to generate urgent cash between professional posts, you might want to adopt one of these ‘bridge job strategies’.
Depending on your work experience, you might immediately be offered a relatively high position, but even if you don’t, this strategy can still offer quite a few benefits.
If you like a certain store, you might want to consider working in retail, for example. Don’t be afraid of entry-level positions as that’s where you’ll get to learn a lot about the business. In such a way, you’ll be earning money while learning something new and while continuing to search for a better-fitted job for you.
If you are an experienced professional, you might be able to easily find a position in your local school system. Experts are usually sought after to teach classes as they can bring real-life perspectives to the students. Make sure to contact the administration of the local school system and the employment office of universities and vocational programs.
There are plenty of gig-finding websites out there – upwork.com, guru.com, and so on. Landing gigs during the time when you're searching for a full-time job will not only bring you some cash but will also help you stay sharp and remain productive.
If you have quite a few years of experience in a certain field, then you can already be considered an expert, and you can use your knowledge to build a consulting practice in your field. You might want to start by finding clients through your past supervisors or previous colleagues.
Even though there are quite a few ways to earn extra cash between jobs, it might take you a few weeks or even months to make your first dollar.
Unfortunately, life happens, and you might find yourself in a difficult situation where you urgently need money. In such a case, an installment loan can become a way out.
Individuals who have lost their job and don’t have an emergency fund set aside and can’t qualify for unemployment benefits might want to consider applying for an installment loan.
This type of loan allows you to receive a lump sum in the shortest timeframe and then repay the loan in regularly scheduled payments.
If you are still looking for a full-time job and haven’t yet managed to land a gig, but you urgently need to cover medical expenses, utility bills, important car or house repairs, or simply buy groceries, then you can use the loan money to take care of the emergency and then peacefully continue on with your job search.
If you are thinking about applying for an installment loan, then you might want to choose a reputable lender like Simple Fast Loans.
Do bear in mind that the applicants must be at least 18 years old and they cannot be regular or reserve members of the military.
Though the whole application process is completed online, you will still need the following documents:
Once you have all the necessary items on hand, you can begin the application process.
Increasing your financial resilience can take quite some time and effort. Unfortunately, you might end up losing your job before you were able to build an emergency fund or get unemployment insurance. In such a case, you would have to focus on bridging the job loss gap and attempting to build income between jobs.
During this difficult time, you might want to consider applying for an installment loan. With Simple Fast Loans, you can get access to fast cash, in case there is an urgent bill that needs to be covered.