Tag Archives: employment

How to Financially Prepare for a Job Resignation

One of the starkest realities regarding the professional world is that people often quit, or resign from, their jobs. This can happen for many reasons; sometimes people have to relocate, move across country, or a new opportunity presents itself. In other scenarios, the employee may be displeased with new management, the workplace environment, protocols, customers, etc. Regardless of the associated reasons, job resignations are simply inevitable parts of life.

However, there are right and wrong ways to go about resigning from a current position of employment. Job resignations furthermore require considerable financial preparations. These are very critical factors which working people should be aware of before telling their employers “I quit.”

Cover Your Bases

Despite the reasons tied to a job resignation, having one’s own bases covered is absolutely paramount, as affirmed by The Penny Hoarder. The individual who is going to resign should ideally have another job lined up, run a side business, or otherwise maintain income to replace their soon-to-be-gone revenue stream.

In addition to ongoing streams of income, people who are preparing to quit their jobs should also have a considerable amount of funds in their savings accounts. Financial experts generally recommend having at least three to six months of living expenses saved up, although some specialists are now advising individuals to put aside six months to one year’s worth of living costs.

Settle All Debts

One of the most common sources of financial hardship is unpaid debt. These debts can become especially problematic when someone leaves their job, thus cutting off a stream of income. For this reason, Mint advises that people completely pay off any and all debts which they may have incurred before going forth and exiting from their current jobs.

Try to Exit on Good Terms

Not everyone exits their jobs on amicable terms. In many cases, conflict with management, undesirable professional circumstances, and other related factors are determining motivators behind a person’s decision to quit their job. Even under the aforementioned circumstances, The Balance still advises individuals against badmouthing their soon-to-be former employers or otherwise burning professional bridges.

In many cases, new employers consult the former bosses of potential hires. For this reason, blasting a manager can easily backfire and even halt potential, forthcoming employment.

Try to Cut Back on Expenses

Even with a sizeable amount of saved funds and additional revenue streams, cutting back on incurred expenses is advisable, if at all possible. Ideally, people should not be dipping into their savings unless it’s absolutely necessary. However, not everyone has the means or flexibility to reduce their ongoing expenses. The cost of living is not cheap, by any means.

A Final Word

At the end of the day, each individual has to determine whether or not they are in a comfortable and financially safe position to quit their job. If a work environment is truly toxic or unhealthy, an employee should definitely escape and seek out financial prospects of a higher quality; the negative offshoots of a destructive work environment are well documented. However, most individuals will ultimately benefit from saving money, settling debts, leaving their jobs on good terms, and reducing current expenses, if at all possible.

 

Authored by Gabrielle Seunagal

Financial Advice for College Graduates

Graduating from college can be one of the most exciting milestones in any young person’s life. Hard work truly does pay off and depending upon one’s chosen occupation, college can open up many doors. However, an awareness of certain financial strategies can particularly come in handy for college graduates.

While the aforementioned graduates may have worked part-time jobs during their years of academia, there are still some critical points which they are unaware of, which is to be expected. Moreover, it’s worth noting that the game completely changes once students leave college and enter the real world.

This is why understanding and heeding the following tidbits of financial advice will prove to be extremely advantageous.

Pay off Student Loans ASAP

One of the most important steps for college graduates is paying off their student loans as soon as possible, as affirmed by Fidelity. While some grants and scholarships do provide full rides to university, most college students end up taking out loans. After graduating from college, the now former students are expected to pay back their loans. Moreover, there are usually interest rates which are added on top of remaining, unpaid loans after a certain period of time.

Virtually everyone has heard the nightmares of individuals who have taken decades (or a lifetime) to finally pay off their loans. Despite the necessity of loans (for most people) to attend college, they are still a form of debt and should be taken care of. College graduates can tackle their loans by getting part-time jobs, freelancing, or otherwise earning income to return the previously borrowed capital. Failure to do this can subsequently breed longterm and undesirable consequences.

Start Building an Emergency Fund

USA Today recommends that new college graduates immediately begin putting money into a savings fund. Between 5% and 10% of one’s regular payments are generally the advised amounts; not only does this built positive financial habits, but establishing a healthy emergency fund moreover ensures that one will have their bases covered in the event of unforeseen occurrences. It is better to have something and not need it than to need something and not have it. Proactive, preventive maintenance is always wiser than reactive damage control.

Do What You Love

Virtually everyone wants to do well in life and make money. However, a huge part of success is being passionate about one’s career or occupation. Now, there are some individuals who maintain that passion is overrated, but they’re wrong. Genuine passion is often a motivating factor; it’s the source which drives people to work hard, overcome obstacles, and keep pushing forward during times where others would have given up.

Sometimes, unearthing one’s passion can take awhile. Many people take certain classes for fun or try new hobbies. One of the best ways for college graduates to tap into their passions and interests are to consider acitivities they would partake in, even without being paid. While everyone has to make a living, the foregoing consideration can be quite eye-opening. Nine times out of ten, our passions are our callings. Once they have been recognized and identified, the process of building a career can commence.

 

By Gabrielle Seunagal

How to Financially Prepare for a Job Layoff

Nobody likes the idea of being laid off from their jobs. Many people not only enjoy their work, but it also allows them to support themselves and any relatives which may also be dependent upon them. If life were perfect, everyone would keep their current positions of employment and never have to worry about layoffs. However, life is far from perfect; job layoffs occur more often than most individuals would like to imagine. This is particularly why each person has the responsibility to ensure that they are financially prepared in the event that they are laid off by their current employer.

Build A Plentiful Savings Account

One of the surest ways to prepare for a job layoff is having a plentiful amount of funds stashed aside. Saving money is always valuable and important; however, its value and paramountcy increase when an income stream evaporates. More often than not, saving sizable amounts of funds takes time. This is often a process which occurs gradually. Working people generally put aside either a specific amount of percentage of their earnings each time they are paid. Forbes moreover recommends having at least three to six months of living expenses saved up in the event of a job layoff. This greatly reduces stress and other headaches which are often brought about due to a lack of funds.

Take Advantage of (Potential) Remaining Job Benefits

Depending on the nature of one’s job, there may be certain associated benefits, such as healthcare, insurance, etc. In certain cases, employees who are laid off may be granted the option to take advantage of their benefits prior to the layout. If the individual at hand is unsure of where they stand regarding their job benefits, he or she should set up an appointment with their employer to get all the answers.

Knowledge is power. Having all of one’s ducks in a row is critical, especially when a job layoff is just around the corner.

Spend Less Money

Although this particular step may appear unnecessary coupled with the existence of plentiful savings, in actuality, it is very important. Spending less money increases the longevity of even the healthiest savings account. Decreasing levels of spending can be challenging, particularly if someone has grown accustomed to a certain lifestyle with various amenities. However, a job layoff is a very serious matter and all energies should be directed towards finding a new source of income to replace the one which is now gone.

A Final Word

Keeping the faith and staying positive are also some important tips when faced when the existence or possibility of a job layoff. The world of work is changing with each passing day; countless people are turning to the gig economy and freelance market as a means of supporting themselves.

In many cases, having multiple sources of income can also counteract the financial impacts of a job layoff. Many people rent spare rooms on Airbnb, drive for Lyft or Uber in their spare time, or even make fruitful investments which are likely to pay off in the future.

Authored by Gabrielle Seunagal