No one wakes up and heads to work with the expectation they will lose their job that day.
With the world we live in this is a reality that exists. So how can you prepare for an event like this so that if or when it happens you can keep the train on tracks? It starts with having a fully funded emergency fund. So, what is an emergency fund and how much should I have on hand? A general rule of thumb is a good emergency fund is 3-6 months of expenses and kept in a way that you can easily access it. The safest place to hold your emergency fund is in a separate money market or savings account. Do yourself a favor and keep it as a separate account. What happens when you have the emergency fund in a separate account that you do not access regularly is you learn to let it sit without touching it except when you have a true emergency.
Now if/when job loss occurs do not hit the panic button immediately.
Take a breath and the first thing I want to do is provide encouragement. James 1:2-3 says that you should consider it pure joy when you encounter trials and that by going thru those trials you develop perseverance. Hold your head up because in that moment you are growing as a person and you will get thru this. When you have a fully funded emergency fund and job loss occurs you can take a different approach to moving forward. Reflect on your career and spend time thinking about what path you feel God is leading you towards. Doing this type of deep thinking is easier and more productive without the lingering burden of financial stress hanging over your head.
Sunny days will come again and when you land that next job do not forget this important step.
Replenish the emergency fund! Too many times people have been saved by the emergency fund but forgot to replenish the fund after the emergency. I know it sound simple but often the simple things are the easiest to miss. FMG Financial Hope can help you determine what your emergency fund should be for when the storms of life hit. If you lost your job today are you ready? If not hope is available.
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