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4 Ways to Prepare for the Unexpected

How to go through the unexpected?

By Veselina DzhingarovaPublished 4 years ago 4 min read
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As of April 2020, the U.S. unemployment rate escalated to 14.7 percent with an estimated 23.1 million Americans out of work, according to the Bureau of Labor Statistics. This data reinforces on a national scale just how unpredictable the business economy can be and how crucial it is to plan ahead for income loss.

Whether it’s a global pandemic, an environmental disaster, a market recession, a business closure or another crisis, financial security is not a given—but there are measures you can take to protect yourself in case the unexpected does come knocking. You can put these action-steps in motion right now as an investment in your future, no matter how vulnerable the economic landscape might feel.

Maintain an Updated Resume and Network

You can never be sure when you will need to pound the pavement for a new a job, so it’s a smart idea to have an updated resume and an active professional network at the ready. Even if you are forced to search in a limited job market, establishing connections with industry leaders and crafting a persuasive, standout resume could increase your value as a candidate. Be strategic, resourceful and creative as you think about how to frame your qualifications to meet an employer’s needs.

Transferable skills such as communication, data analysis, teamwork, project management, customer service and digital competency are relevant across all sectors, and there are online courses to learn technical, industry-specific skills too. You need both for a strong resume, and a professional network can guide you toward the areas of expertise to focus on. “Don’t be afraid to reach out to people in an industry you’d like to work in or positions you want to hold to get a better understanding of the role […] In situations like this, people usually want to help others if they can,” a recent article in Money adds.

Look into Freelance or Side Hustle Projects

Joint research from FlexJobs and Global Workplace Analytics found that remote work has increased by 44% percent in these last five years. This means now is the optimal time to direct your skills and experience toward freelance positions or remote side hustles. You might even be surprised just how marketable some of your core aptitudes are in this trending remote economy. Below is a rundown of potentially lucrative side hustles to look into, based on data from Fiver and Upwork, compiled by CNBC.

• Earn $75 to $1,045 writing an online article from scratch, or earn $135 to $995 revising content for SEO optimization.

• Earn $100 to $3,200 editing videos for special events, websites and social media.

• Earn about $25 an hour moderating social media accounts for a brand which means creating posts, interacting with followers and launching promotions.

• Earn $395 to $4,095 building and coding a website on platforms such as WordPress.

Understand Your Health Insurance Options

If you receive health insurance benefits through an employer, this can be a serious blow in the event of a job loss, but alternative resources and policies exist. One option is a short-term plan that will cover anywhere from six months of health insurance to three years (if you combine various short-term plans together). “A typical short-term policy costs around $116 a month for an individual and can offer a wide range of deductible levels to choose from to help you find a premium that’s affordable,” note the experts at HealthMarkets. You can access short-term coverage for any of these reasons:

• You are unemployed, furloughed or laid-off from a job.

• You are a young adult who is not under a parent’s health insurance anymore.

• You are in a waiting period before company benefits start.

• You retired earlier than your Medicare coverage is due to kick in.

• You were recently discharged from military service.

• You missed the enrollment deadline for comprehensive health insurance.

Build an “Emergency Fund” Savings Account

While it’s common to live from one paycheck to the next, in times of crisis, this financial strategy comes apart and often leaves entire families in the dire situation of not being able to afford their basic expenditures. “Americans’ lack of emergency savings is a longtime worry, even during the strong economy of the past few years. Numerous surveys by the Federal Reserve have found that many households would struggle to handle an unexpected $400 expense,” a New York Times article reports.

In order to minimize the risk of late bill payments (or in extreme cases: foreclosures, evictions or repossessions), it’s crucial to start an emergency fund as soon as possible. When you create a budget for the month, determine which areas to curb your spending in, then earmark that money to save for emergencies instead. Open a new account specifically for these funds and do not transfer anything from it unless you have an urgent need to. Tax refunds or stimulus checks help boost an emergency fund, but you could also grow it in increments by allocating whatever amount you can spare each month.

Have you been on the receiving end of a financial hardship or job insecurity? What action-steps helped you manage the situation and recoup those losses? Share your thoughts on how to prepare for the unexpected in the comment section below.

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