Survive the Economic Storm by Taking Control of Your Finances
The coronavirus pandemic has led to a tragic loss of life around the world. It’s also dealt a hammer blow to the global economy.
You only have to look at the impact on the aviation industry to see just how devastating the pandemic has been on revenue, growth, and jobs. In fact, according to the International Air Transport Association, the aviation industry is set to lose a staggering $84.3 billion in 2020.
Of course, it’s not just the aviation industry that has been affected. Almost every industry has seen a significant hit to its income. And this is leading many organizations to begin laying off staff.
Given the above, it’s vital that you put yourself in charge of your own destiny. The truth is, your economic freedom will depend on it.
Fortunately, there are several strategies you can implement right now to protect your career and finances.
Let’s dive straight in and take a look…
Securing your finances
There are five key steps you should implement to maintain (and perhaps even boost) your economic well-being:
#1 Take stock of your financial situation
Before you make any changes to protect and bolster your finances, you need to know exactly what they look like. This means dedicating a few hours to look at exactly what savings you have, what your income is, and what your expenditure is. Don’t forget to include any loans or credit cards in your calculations.
If like most people, you haven’t done this for a while, you may be shocked by just how much money you’re spending every month. Don’t worry though, as I’m going to help you deal with this in the next step.
#2 Cut unnecessary expenditures
Once you’ve detailed all your income and expenditure for an average month and year, it’s time to see where you can make savings. Look at subscription services first.
For example, you may be paying every month for Audible and Netflix — but rarely use them. Services like this are easy to cancel, and you can always resubscribe if you feel the need. And how about your eating and drinking out costs? Could you cut these back by 50%? I’m sure you could if you tried.
#3 Deal with your debts
According to Experian’s 2019 Consumer Debt Study, Americans carry an average personal debt of $90,460. It’s no wonder that people are extremely concerned about losing their jobs and income.
My advice?
If you have any overdrafts, personal loans, student loans, and credit cards — do what you can to pay these off. With interest rates so low at the moment, it’s actually a good time to switch to cheaper deals if you can. It also makes financial sense to pay off your highest interest rate debts first. And remember, you don’t need to be ashamed of your debts, you just need to take action to deal with them.
#4 Increase your income
You might think that the pandemic and global financial disruption has meant that you’ve no chance of increasing your income at this time. I disagree. History shows that some people have always managed to thrive during financial crashes, such as the Great Depression in the 1930s.
How did these people manage this?
Well, they looked for new opportunities and trends that — despite the economic fallout — were proving to be profitable. In the Great Depression, the number of people working for governments surged, as work relief programs put people to work in fields ranging from clearing up pollution to constructing new homes, roads, and railways. Interestingly, Hollywood also did very well during the Great Depression, as many people sought to escape through movies from the gritty reality of day-to-day life.
So what jobs will be in demand over the next few years? I’d put my money on AI, healthcare, financial services, and robotics.
#5 Save for the future
Once you’ve got your finances under control, then you’ll be in a position to start saving — if you haven’t done this already.
Depending on where you are in the world, there are different savings schemes that you can take advantage of. Some, like pension schemes through your employer, can be a great way to save for your retirement. Other schemes lock your money into a savings account for just a few years, but offer you tax free savings.
Whatever savings scheme you decide to go for — make sure that you stick to it.
To help you do this, always keep your mind on the good things that you can do with your savings at the end of the scheme. For example, a five-year savings plan could give you the deposit you need to get onto the housing ladder. And your retirement savings plan could mean that you could retire in the place of your dreams (perhaps in a cottage overlooking the sea) without having to worry about where your next dollar bill is coming from.
Staying employable
Of course, a vital part of staying financially afloat is to make sure you either keep your job or keep your employment opportunities open. (Or both!)
Again, I’ll break this down for you into five simple steps:
#1 Help your employer (so you become indispensable)
Ideally, you only want to look for a new job if you want to — rather than need to.
It’s been shown that looking for a new job while you’re currently employed makes finding a new job easier than if you’re looking while you’re unemployed. This alone makes it a wise choice to do what you can to avoid being made redundant.
One way to stay in demand is to be as supportive of your employer as possible. This means doing everything you’ve been asked to do — and more. When an employer sees that you love your job and are happy to go the extra mile when needed, they’ll try to hold on to you as long as possible.
Put yourself in your employer’s position. If you were forced to let go of 20% of the workforce, who would you choose?
#2 Take training to boost your skills and confidence
While people scramble around stressing over their futures, you can help to secure yours by investing your time and money into practical training courses.
For example, many journalists are currently losing their jobs, but with just a little bit of retraining, these people could find many opportunities in the world of Digital Marketing. They already have the necessary word skills. They just need to know how to create powerful graphics and images. These are things that can be learned in a relatively short period of time and could make the difference between finding a job or being on the scrapheap.
#3 Update your resume and LinkedIn profile
I’m always shocked by the number of people who don’t have up-to-date resumés or LinkedIn profiles. In fact, I was talking recently to a friend of a friend who sounded like they might have been a good fit for my company, Lifehack. However, when I asked them to send me their resumé, they told me that they could do this, but it was years out of date. “Do you have a Linkedin account? I asked them. “No sorry, I haven’t got around to creating one as yet,” they replied.
Needless to say, I wasn’t impressed.
You should always have an up-to-date resumé and LinkedIn profile — as work opportunities can come at any time (usually when you’re least expecting them).
Now, if you’re a decent writer, I suggest you create your own CV and LinkedIn profile. But if writing (and selling) is not your forte, then consider paying for a professional writer to create your content. This could pay big dividends if it secures you a well-paid job.
#4 Use SMART goal setting
To stay employable, you should know exactly what you want and have a plan to get it.
A great way to do this is to use the SMART goal setting method:
Specific — be clear about what you want.
Measurable — set targets that you’ll be able to tick off when you’ve hit them.
Achievable — choose goals that push your boundaries but are still achievable.
Realistic/Relevant — if you need a new job, make sure that’s your goal (best leave the dream holiday goal for another day!).
Time-bound — goals are much easier to achieve if you have a definite date of when you must achieve them by.
As you can see, the SMART method is a simple way to set and achieve your goals. I’ve used it for many years, and I can vouch for its effectiveness.
#5 Get that job
If your company bites the dust, then you’ll have no choice but to start looking for another job.
You’ll have a head start if your resumé and LinkedIn profile are ready to go. (If not, this is your first step.) But please don’t make the mistake of sending out your resumé to hundreds of employers and agencies. If you do this, you’ll end up being confused about who and what you’ve applied for. You’ll probably also find yourself inundated with interview requests for jobs you don’t really want.
It’s much better to be specific about what job you want before you start applying. This way you can target your applications to relevant companies. This will also give you the chance to make ‘speculative’ applications. These are applications to companies that aren’t currently advertising for staff. Sometimes, however, companies will consider hiring people who closely match their required skills and ethos.
For example, if you’re seeking a job as an accountant, you could stand out from the pack by tailoring your resumé and LinkedIn profile to position you as a specialist in a particular area of accounting (perhaps management or tax accountancy). Not only will this make it clear to potential employers what role you’re seeking, but it’ll also create an image in their mind of you as an authority in your field.
One final point about securing a new job. If you’re 40+ years of age, you may worry that you’re too old to win against younger applicants. However, here’s what Ronald Reagan said in 1984 when he was challenged about being too old to become U.S. President: “I will not make age an issue of this campaign. I am not going to exploit, for political purposes, my opponent’s youth and inexperience.”
Your future is in your hands
An economic storm is upturning our world, but when you implement the strategies I’ve outlined above, you’ll bullet-proof yourself and your future.
Start taking action right now by sorting out your personal finances, and once you’ve done that — move quickly onto the steps for staying employable.
Please also share this article with friends and family, as it’s a vital message that I know many people are crying out for.
Ultimately, when you take charge of your finances and your career — you’ll have taken control of your life.
If you’ve enjoyed this article, then please check out Lifehack’s 3-Step Guide to Break Free and Design the Life You Want. This free guidebook will show you how to transform your life.
