If you’re like most people, COVID-19 has dramatically impacted your financial health.
Most of us are unprepared for a crisis when it comes to money. Here’s some simple advice on how to change that.
- Build a safety net for three months (or more)
No matter how good you are at your job when a major economic crisis happens, pay cuts and job losses happen.
Most people plan their finances on the assumption that they won’t lose their job. While it might sound pessimistic, you’ll live a much happier life if you plan on the assumption that you will.
For the average employee, saving enough money to live on for three months might seem impossible, but even if you build up savings very gradually, taking years, it’s still worth doing.
Just remember to look back at your actual monthly spending and base the amount you save on that – not on guesswork or on what you would ideally spend.
When job losses hit, who finds new work the fastest? The people with the best skills. That’s why it’s vital to keep learning and developing yourself.
It’s also a great idea to take some time and evaluate key transferable skills that you already have. Many skills can be applied to numerous roles and it’s always best to use what you have in your tool-kit first.
In addition, upskilling is no longer time or cost heavy. There are numerous resources online which can often be found for free or at a low-cost. Be sure to make the most of online video’s, podcast’s, and e-learning sites. An investment in knowledge pays the best interest!
- Stay lean and mean
The businesses that come out of a crisis smelling of roses are those that manage to stay lean (cutting costs) while also staying mean (able to function at their best). This means cutting costs intelligently and not making any false economies. You can learn from that.
Building good financial habits during a crisis has long-term economic gains. If you can maintain the new habits you have built during the good times, you will quickly start piling up savings. It’s an age-old saying that speaks them most truth- “Look after the pennies and the pounds will look after themselves”.
We work with a wide variety of Financial Services companies, across the globe and have done so for many years. If you’re a candidate looking for a new role or a business looking for the most up-to-date advice, contact Marlin Selection- +44 20 8142 3925