30 Career Management Tips — Save for a Layoff Day

By Scot Herrick | Personal Finance

Sep 02

This month, I’m providing a career management tip-a-day (along with other posts) to help you trigger your own career management activities.

Today’s tip: Save for a Layoff Day.

On the face of it, you might not think that “saving for a layoff day” has a lot of relevance to career management. But having money in the bank to support a time when you are laid off is a great career management move.

Here’s five reasons “saving for a layoff” is about career management:

  1. Peace of mind at work. One of the things that starts happening at work when layoffs start is the sense of impending doom — or panic — at the thought of being laid off and not having the money to support ourselves. Knowing you have money to survive a layoff enables you to look at the work situation from the view of opportunity, not from fear.
  2. Preserving your credit rating. Weird, huh? One of the things many employers are now doing is checking your FICO score to see how credit worthy you are as part of the security check in the hiring process. Having money in the bank supporting time off means paying your bills on time and helping your employment prospects.
  3. Support the home front. One of the greatest areas of support for us is our family and friends. If our family and friends aren’t stressing out over finances from us being laid off (especially our spouses), it means they can focus on supporting what we need to find a new position after a layoff.
  4. Have an emergency fund. You know how every financial planner in the world tells us to have an “emergency fund,” right? Well, saving for a layoff means dollars in the bank that would also help in case of an emergency even though we are still employed.
  5. Accepting the right job. Having enough money in the bank means not having to accept an offer that is not right for us, but we would have taken because it brought money in the door. And that translates into better job satisfaction and increases our chances of being of value at work.

Financial savings are an important aspect of career management. Having the money means you can look at any situation with confidence, knowing your back is covered with money in the bank.

  • […] Save for a layoff day. The need to have enough savings so that being laid off doesn’t restrict your choices in taking the next position. […]

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